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So one random person's tweet (with 5 likes) reporting an issue with their account means Binance is facing a liquidity crisis?

• wslh 3y ago
  First, likes are not a measure for truth. Hollywood is full of likes ;-) This is not how things work. Exchanges offer zillions of assets and the same asset (e.g. USDC) could be available in multiple L1s and L2s. The liquidity issue is specific to an asset in an specific technology. The problem is when the exchange says that there is liquidity for that specific asset in an specific technology and the information is incorrect. There are few cases when some exchange shows their liquidity pool in an asset/technology.
  • lopkeny12ko 3y ago
    Ok but this seems like an issue isolated to just one random person on Twitter? If there was a real liquidity crisis why aren't more people complaining?
    • wslh 3y ago
      No, the issue happens because it is not one of the top cryptocurrencies, so few people withdraw that asset. It is not isolated to a random person it is connected to specific low liquidity assets.