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Binance is trying to calm investors, but its finances remain a mystery

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Re: Binance is trying to calm investors, but its finances remain a mystery

#61

Post by Gigachad »

TimJRobinson wrote: post #59
Gigachad wrote: post #50

Earlier quoted context omitted.

I just can't see how crypto can recover tbh. What other technology spent ten years, produced basically nothing of value, is almost universally hated by the whole population and then came back to be something useful? It's not like quantum computing where we just don't know how to make it work. There are close to no technical problems, the core idea just doesn't work.

Imagine thinking an industry worth $800B, with 200M users, transferring billions of dollars a day, is "hated by the whole population". You really live in a bubble

200M even if accurate is still a drop in the bucket considering almost every person knows all about crypto at this point and the general sentiment on the street is that its filled with gambling, scammers, and environmental destruction.

Crypto valuations are also complete bullshit considering how much "wealth" is alt coins with no liquidity. I could easily create a multi trillion dollar market cap coin in a weekend. Doesn't mean shit.

Re: Binance is trying to calm investors, but its finances remain a mystery

#62

Post by stickfigure »

Mengkudulangsat wrote: post #48
rippercushions wrote: post #23

Earlier quoted context omitted.

It's unlikely even Coinbase will survive: they lost $1.1 billion with a B in Q2 and $545M in Q3. Their trading fees are well known to be far higher than the competition (because they can't juice their numbers by gambling), so they rely on unsophisticated mass investors who don't know any better, but those investors are wisely staying the hell away from crypto right now.

How in the world is Coinbase losing THAT much money? Isn't the product mature and fully-featured already?

I was wondering this myself and it looks like they were +$3B profitable in 2021? A wild ride but it doesn't necessarily sound fatal.

Re: Binance is trying to calm investors, but its finances remain a mystery

#63

Post by jrm4 »

Gigachad wrote: post #50
xwdv wrote: post #19

I’m waiting for Binance and Tether to collapse, and then we will know with certainty crypto’s best days are behind it, down to zero it goes. If you have assets on Binance I would not be complacent. Get them out.

I just can't see how crypto can recover tbh. What other technology spent ten years, produced basically nothing of value, is almost universally hated by the whole population and then came back to be something useful? It's not like quantum computing where we just don't know how to make it work. There are close to no technical problems, the core idea just doesn't work.

The core idea does not work for many, if not most, of the things people have promised it can work for -- but that's very different from "doesn't work."

I'd say it's still a pretty strong contender not for "cash in hand" but for a better "money in your mattress."

Re: Binance is trying to calm investors, but its finances remain a mystery

#64

Post by rurp »

monero-xmr wrote: post #11

Binance is the closest thing to a global, borderless bank that exists today. They exist everywhere and nowhere. Their legal entities shift based on what is needed at the moment. They have the ability to easily create tens of millions of dollars as needed based on their BNB reserves, tight relationship with Tether, their ability to launch new token projects (i.e. unregulated securities offerings), and their stablecoin…

This... is not reassuring.

Re: Binance is trying to calm investors, but its finances remain a mystery

#65

Post by jcranmer »

monero-xmr wrote: post #11

Binance is the closest thing to a global, borderless bank that exists today. They exist everywhere and nowhere. Their legal entities shift based on what is needed at the moment. They have the ability to easily create tens of millions of dollars as needed based on their BNB reserves, tight relationship with Tether, their ability to launch new token projects (i.e. unregulated securities offerings), and their stablecoin…

Ooh boy...

> Binance is the closest thing to a global, borderless bank that exists today.

There are several very large international banks you're ignoring.

> They exist everywhere and nowhere.

I read this as "we can do business with you everywhere, except if you need to sue us, at which point you can't sue us anywhere." Which is a massive red flag.

> Their legal entities shift based on what is needed at the moment.

Man, prosecutors are going to have a field day with this--this is gold mine for proving intent to defraud!

> They have the ability to easily create tens of millions of dollars as needed

One of the most poignant lessons of financial history is that wildcat banking does not make for stability.

> tight relationship with Tether

Extraordinarily high exposure to a creaky pillar of the cryptocurrency economy.

> their ability to launch new token projects (i.e. unregulated securities offerings)

Incredibly illegal in the US, which means they're in shitloads of trouble if they're actually trying to transact in USD and not magic-dollar-pegged tokens.

> They act as an investment bank - I know a prominent crypto entrepreneur that got loaned 8 figures after a text message to help finance an acquisition.

So their due diligence on loans is absolute and total shit. Their balance sheet must be creaking badly then!

> they are so absolutely huge it would take a lot more FUD than exists currently to damage them even a little

The thing about too big to fail is that it's not that someone is so big there's no way they can fail; it's that someone is so big the government is forced to bail them out instead of letting them fail. Given that cryptocurrency is dominated by people at best thumbing their noses at the idea of government control, what government is going to be willing to step in to save the failing too big to fail crypto bank?

Re: Binance is trying to calm investors, but its finances remain a mystery

#66

Post by vishnugupta »

When questioned about liability CZ callously remarked that it’s a bit complicated to audit their liabilities but they didn’t have any, and that we should “ask around”. So we now have a new audit system, “audit by ask around”.

Re: Binance is trying to calm investors, but its finances remain a mystery

#67

Post by etempleton »

ramraj07 wrote: post #39
bushbaba wrote: post #3

Binance is even more shady than FTX. They are most likely not solvent. Personally, I'd move all my funds off binance to off-exchange wallets for the time being.

Just makes one wonder why the binance guy even stirred the pot initially with FTX, like 3 possibilities exist: 1. He assumed the blowout would be minimal outside of FTX and/or assumed FTX was shady but not as bad as it turned out 2. He acknowledged the possibility that binance will also get scrutiny but realized FTX was just so bad that letting it fester further will only get him arrested faster too. 3. He’s just ano…

4. It is all ego driven.

Re: Binance is trying to calm investors, but its finances remain a mystery

#68

Post by tdeck »

Gigachad wrote: post #50
xwdv wrote: post #19

I’m waiting for Binance and Tether to collapse, and then we will know with certainty crypto’s best days are behind it, down to zero it goes. If you have assets on Binance I would not be complacent. Get them out.

I just can't see how crypto can recover tbh. What other technology spent ten years, produced basically nothing of value, is almost universally hated by the whole population and then came back to be something useful? It's not like quantum computing where we just don't know how to make it work. There are close to no technical problems, the core idea just doesn't work.

MLMs like Amway are still around though. Crypto operates like an MLM in many ways.

Re: Binance is trying to calm investors, but its finances remain a mystery

#69

Post by Gigachad »

jrm4 wrote: post #63
Gigachad wrote: post #50

Earlier quoted context omitted.

I just can't see how crypto can recover tbh. What other technology spent ten years, produced basically nothing of value, is almost universally hated by the whole population and then came back to be something useful? It's not like quantum computing where we just don't know how to make it work. There are close to no technical problems, the core idea just doesn't work.

The core idea does not work for many, if not most, of the things people have promised it can work for -- but that's very different from "doesn't work." I'd say it's still a pretty strong contender not for "cash in hand" but for a better "money in your mattress."

So the only use cases so far are pleasing paranoid schizos, ransomware, and scams?

Cash in your mattress is likely much safer than in your bitcoin wallet.

Re: Binance is trying to calm investors, but its finances remain a mystery

#70

Post by Sargos »

jcranmer wrote: post #65
monero-xmr wrote: post #11

Binance is the closest thing to a global, borderless bank that exists today. They exist everywhere and nowhere. Their legal entities shift based on what is needed at the moment. They have the ability to easily create tens of millions of dollars as needed based on their BNB reserves, tight relationship with Tether, their ability to launch new token projects (i.e. unregulated securities offerings), and their stablecoin…

Ooh boy... > Binance is the closest thing to a global, borderless bank that exists today. There are several very large international banks you're ignoring. > They exist everywhere and nowhere. I read this as "we can do business with you everywhere, except if you need to sue us, at which point you can't sue us anywhere." Which is a massive red flag. > Their legal entities shift based on what is needed at the moment. M…

It sounds like you should know that Binance has a fully regulated and approved United States entity at https://Binance.us
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