Could Binance be next FTX because it endured 1 billion of net outflows on today?

https://news.ycombinator.com/item?id=33968345

by michaelcao • 4 years ago

5 9 4 years ago

news.ycombinator.com

CoinDesk said that Binance Withdrawals Surge as Concerns About Its Reserve Report Spook Traders. Reuters reported that U.S. prosecutors are mulling criminal charges for possible money laundering against Binance and its executives, including CZ. I am very cautious to invest in crypto currencies

PaulHoule• 4 years ago

The questions are: (1) are they legit? (Do they have the underlying assets?) (2) do the underlying assets collapse in value, (3) can they afford to keep in operation through a crisis and (4) what liabilities do they face from money launderers, tax evaders and the like using their platform?

If the assets are BTC and ETH and the values float then variations in value just happen. If they are stable coins people are going to mad if a $1.00 coin is worth just $0.95 and you will really have a run.

Ordinary stockbrokers can break down and be unable to sell your stock for you, that is why the SIPC was formed in the 1960s crash. Bin ace is also facing big trouble because it has dodgy customers, banks really hate their KYC responsibilities because they’d rather not ask what customers are doing but in a world where the Republicans, Tories, and similar parties won’t let governments raise taxes it is all they can do to make sure they collect the taxes they are owed.

michaelcao2• 4 years ago

Yes. Investors fear that there aren't stable coin anymore. Luna's stable coin is a good example.

Lionga• 4 years ago

Binance just announced it halts withdrawals of stablecoins: https://www.cnbc.com/2022/12/13/crypto-exchange-binance-temp...

michaelcao2• 4 years ago

It's very bad for crypto investors

ratg133• 4 years ago

They just swapped 3B of Tether some minutes ago.

https://twitter.com/tether_to/status/1602654597805445123

It was troublesome for a day, and not surprising giving the amount of withdrawals.

I still think Binance is shady, but this is not showing itself to be anything more than large market moves so far.

ratg133• 4 years ago

They swapped 3B of Tether after this was written.

https://twitter.com/tether_to/status/1602654597805445123

Presumably they will shore up USDC in short order.

I do think Binance is shady, but so far they seem to be responding as well as one would expect from this magnitude of withdrawals.

Could Binance be next FTX because it endured 1 billion of net outflows on today?

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