Binance Is Bleeding Assets, $12B Gone in Less Than 60 Days

https://www.forbes.com/sites/javierpaz/2023/01/09/binance-is-bleeding-assets-12-billion-gone-in-less-than-60-days/

by wg0 • 4 years ago

95 49 4 years ago

bushbaba• 4 years ago

It'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.

xwdv2• 4 years ago

I can’t wait to see tether completely depeg and the chaos to ensue. I’ll ride that high for a very long time.

jsutton2• 4 years ago

You 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.

TechBro86152• 4 years ago

I've been hearing Tether will depeg for nearly eight years now.

nl• 4 years ago

Just noting that it is Bitfinex that runs Tether not Binance.

(Although agree that Tether de-pegging would be catastrophic for all crypto companies)

esalman2• 4 years ago

Crypto is a pump and dump ponzi scheme, who would've thunk.

yieldcrv• 4 years ago

crypto 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 that isn't happening here after $12B "bleeding" out, aka withdrawn as intended?

esalman2• 4 years ago

Is 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• 4 years ago

If 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• 4 years ago

Probably some money laundering scheme going on

enkid• 4 years ago

Do they not make money off the deposits somehow?

X6S1x6Okd1st• 4 years ago

They take a cut of trades. No one external actually knows if they are using deposits for other purposes

wmf• 4 years ago

Over 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• 4 years ago

Dupe: https://news.ycombinator.com/item?id=34310423

Melting_Harps• 4 years ago

CZ 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.

dang• 4 years ago

Binance has lost $12B in assets in under 60 days - https://news.ycombinator.com/item?id=34310423 - Jan 2023 (78 comments)

wg03• 4 years ago

Thanks 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• 4 years ago

Sure, 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• 4 years ago

Ummm... I am no finance expert, but if customers withdraw their assets, isn't it the liabilities of Binance going down?

Binance Is Bleeding Assets, $12B Gone in Less Than 60 Days

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