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Can someone explain what this might mean? I'm not plugged in enough to crypto to get the apparent implication(s). Is this "Binance gets its comeuppance from ca
by busyant 4y ago
Can someone explain what this might mean? I'm not plugged in enough to crypto to get the apparent implication(s).
Is this "Binance gets its comeuppance from catalyzing FTX's downfall?"
Is this "no big deal/a triviality" as is implied in the article?
Perhaps something else?
- unyttigfjelltol 4y agoIt is a comforting-sounding way to prohibit large USD withdrawals. In almost any other context, e.g., bonds, bank accounts, currencies, the next step would be devaluation, crisis, and default.
- busyant 4y agoThank you.
- latortuga 4y agoDisclaimer I have no crypto or finance expertise. "We're suspending withdrawals" reads to me as "we don't have money to cover withdrawals" which implies they don't have enough liquidity or are insolvent.
- dgivney 4y agoIt means Binance is running low on USD reserves and is buying more by preventing large USD outflows while continuing to allow USD inflows. It's worth noting that Binance operates BUSD, a stable coin pegged to USD which according to their website saw a 25% reduction in net asset reserves between Nov 2022 to Dec 2022 (https://www.binance.com/en/busd https://www.binance.com/en/busd) - if that trend has continued that may be why they need a short-term supply of USD.
- red-iron-pine 4y agoPut simply: it's bad. Maybe a mild bad, but still bad. Or rather: this isn't something very confident, growth-trending orgs do.