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Binance Is Bleeding Assets, $12B Gone in Less Than 60 Days
- bushbaba 4y agoIt's ok they'll just issue 12B more BNB tokens to themselves to make up for the difference. /s If tether de-peggs, which is not unlikely, then this is just the tip of the outflows , margin calls, and bankruptcy we'll see in the crypto space.
- xwdv 4y agoI can’t wait to see tether completely depeg and the chaos to ensue. I’ll ride that high for a very long time.
- jsutton 4y agoYou can't wait to see millions of people lose money and in some cases their livelihoods? Maybe you should stop blaming cancel culture for your declining karma and do a little bit of self-reflection.
- Tesl 4y agoI'll be delighted when the giant negative sum ponzi explodes. The entire space is a huge net negative on society and I wish it didn't exist.
- jsutton 4y agoWhat about social media, is that a net negative? Gig economies? Every societal shift enabled by technology comes with significant negatives, but you won't know if it is a true net negative on society until it plays out to maturity.
- lynx23 4y agoIf you have any question that crypto is a net negative for society, it is likely pretty hopeless to argue with you. I guess you are invested in crypto, so biased.
- Tesl 4y agoIt's been fifteen years. It's mature. It's shit.
- imtringued 4y agoIt is also old enough to have its 2008 moment. It basically acts like gold with more hype because it's on the internet. We have hundreds of years of economic history with gold. It is not some revelation.
- waste_monk 4y ago>What about social media, is that a net negative? Yes, absolutely. While it allows people to keep in touch more easily, the manipulation of society via fake news, targeted advertising, etc. has been extremely harmful. It has made people increasingly vainglorious, and promotes wasteful excess in the name of social status (influencers and other parasites on society). It brings out the very worst in people. Not to forget the rise of far-right extremism. Look at the Qanon thing, what should have been limited to a few paranoid weirdos eventually led to open insurrection. This disgrace would not be possible without social media. >Gig economies? Yes. While it is convenient and can benefit some small percentage of the gig workers, it is an overall negative to most of these gig workers - e.g. with ride sharing services they have successfully offloaded the costs of owning and operating a vehicle fleet (fuel, wear and tear / maintenance, etc.) onto people's personal vehicles. I have heard of a number of cases where drivers have taken out loans to purchase luxury cars to be eligible for Uber's higher-end service, only to be stung by pricing changes and forced to default, leaving them far worse off than when they started. >Every societal shift enabled by technology comes with significant negatives, but you won't know if it is a true net negative on society until it plays out to maturity. Cryptocurrency has had ~15 years and the only real successes in that space have been new and interesting forms of fraud and incompetence.
- the_gastropod 4y agoI suspect they believe something akin to what I do: millions of people have already lost money; they just don’t yet know it.
- lynx23 4y agoSure, have pity with those with too much money. Of course. Because these people have not chosen deliberately to play with their money. I know there is this sort-of-equivalence of hard drug addicts and gamblers. But in my book, these are all grown up people, that have decided to take a risk to maximize their assets. Not my bussiness at all when they loose the bet.
- koonsolo 4y agoThese commenters missed out on the most lucrative investment of their lifetimes. In their own family and social environment they are considered the technical people, and they get questioned as why they didn't invest. Why they didn't foresee this. So to keep their own ego alive they must now convince themselves they were right all along, the others just don't see it yet. They are of course very bitter and wish their own suffering onto others. I, on the other hand, made a shitton of money in crypto, and cashed out a part so I can never lose. The people that I described above really hate these kinds of comments so I'm surely going to be downvoted to hell. So I'll leave this comment with a crypto-usecase of a fellow HNer: https://news.ycombinator.com/item?id=31996612 https://news.ycombinator.com/item?id=31996612
- jiggawatts 4y ago“I won Russian roulette, you should play too!”
- jbverschoor 4y agoEverybody on HN is playing the stap Russian roulette, and many fail to win, but still people recommend it
- koonsolo 4y agoForgot to take a look at the use-case?
- boeingUH60 4y ago"I benefitted from a Ponzi scheme and you should too"...for every person who cashed out from something technically worthless, there are many others that lost their shirts too...this isn't a valid argument.
- koonsolo 4y agoDid I say you have to buy too? No. I said people are very resentful that they missed out. "missed out" is past tense.
- TechBro8615 4y agoI've been hearing Tether will depeg for nearly eight years now.
- dhosek 4y agoMarkets can remain irrational longer than rational people can remain solvent. Bitcoin made no sense to me in 2007 and I have yet to see any compelling argument for crypto in general and as an investment it makes as much sense as “investing” in checks. But while I feel confident I’m correct, if I’d tried to bet against it, I’d have lost a lot of money. Doesn’t mean that I’m wrong though.
- TechBro8615 4y agoTheres nothing irrational about Tether if Binance is being honest. It's possible they're being truthful about not touching customer deposits of fiat USD.
- koonsolo 4y agoI always find it weird how people have believes and stick to them instead of having a curious mind and question or challenge their own thoughts.
- hprotagonist 4y agowell eventually, if you have a curious mind, you’ll question or challenge your thought that it’s weird that people have beliefs and stick to them instead of having a curious mind and question or challenge their own thoughts …
- ipaddr 4y agoI feel that way about nightly entertainment shows that appeared after the news but before prime time. I hated them and saw no case for their existence. The shows seems so fake. Everything hype. But 20 years later people still like these shows and they live on. Just because I have no use for something it doesn't mean someone else might be more clever or resourceful with it. Betting against cryto is betting that everyone gives up on it which is different than if it will be useful to most. Cryto can work in different ways for different people. It is not ready for the masses but more people are finding different ways to use it everyday.
- nl 4y agoJust noting that it is Bitfinex that runs Tether not Binance. (Although agree that Tether de-pegging would be catastrophic for all crypto companies)
- esalman 4y agoCrypto is a pump and dump ponzi scheme, who would've thunk.
- yieldcrv 4y agocrypto exchanges that work correctly can handle simple withdrawals. people are simply heeding the advice of "not your keys, not your coins" and withdrawing. properly functioning exchanges can handle that, improperly run exchanges halt withdrawals and make excuses. that isn't happening here after $12B "bleeding" out, aka withdrawn as intended?
- esalman 4y agoIs there a crypto exchange that do this correctly? Isn't the idea of an ideal exchange go against the philosophy of decentralization? If exchanges are not regulated, what incentive do they have to handle assets correctly anyways? And finally, if regulation is inevitable, why not just go with the traditional financial system for better safety and security?
- benjaminwootton 4y agoIf they are not operating on fractional reserve or doing anything shady then this is no big deal and how the system is supposed to work. A smaller run than this took down FTX.
- jokoon 4y agoProbably some money laundering scheme going on
- deleted 4y ago[deleted]
- enkid 4y agoDo they not make money off the deposits somehow?
- deleted 4y ago[deleted]
- X6S1x6Okd1st 4y agoThey take a cut of trades. No one external actually knows if they are using deposits for other purposes
- ipaddr 4y agoThey sell coin listing access and coin drop promo access and can sell on insider information. I imagine deals for certain coin access are paid for in that currency
- wmf 4y agoOver the last year we've discovered that there is no safe way to do this. Every company that lent out customer crypto deposits is now bankrupt. Unlike "tradfi" where you can lend to a stable government or a diverse basket of companies engaged in the real economy, crypto has no risk-free rate of return.
- olalonde 4y agoDupe: https://news.ycombinator.com/item?id=34310423 https://news.ycombinator.com/item?id=34310423
- Melting_Harps 4y agoCZ brought this on himself, he and SBF are getting absolutely destroyed for all the right reasons, and incidentally BTC finally broke back into the 17k range which happened after the FTX scandal, despite not having any BTC on their exchange at all. Fundus are clearly not safu with him or anyone else and people are starting to realize that now, hopefully this finally sinks into people's head when getting involved. And Coinbase has already been humbled with their stock price drop, but I feel that still more needs to be done to reduce their influence on the market.
- guender 4y ago[dead]
- dang 4y agoBinance has lost $12B in assets in under 60 days - https://news.ycombinator.com/item?id=34310423 https://news.ycombinator.com/item?id=34310423 - Jan 2023 (78 comments)
- wg0 4y agoThanks and sorry I searched for the Forbes link, didn't find so posted but I'll try to search by headline or similar next time. :)
- gojomo 4y agoSure, but funds leaving were deposits held for others, so outflows reduce assets & liabilities in perfect sync. That results in no decrease in book value, so word choice "bleeding" a bit of a reach to create extra drama.
- MattPalmer1086 4y agoUmmm... I am no finance expert, but if customers withdraw their assets, isn't it the liabilities of Binance going down?