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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

#151

Post by shapefrog »

unmole wrote: post #131
shapefrog wrote: post #103

Earlier quoted context omitted.

IF they never gambled their depositors money, then they are/will be fine. Running an exchange, taking a cut of all transactions on your platform is effectively impossible to collapse (excluding your actual costs of doing business).

They can even do proprietary trading using the market information they have!

For an unreglated market, it really is a licence to print money - the one and only thing you have to do is keep your depositors assets stored in the asset they have deposited or exchanged to.

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

#152

Post by anonymoushn »

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…

Given the negative impact of recent events on his business, he either did not expect FTX to explode so easily or wanted to get it over with.

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

#153

Post by simiones »

sneak wrote: post #42
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.

For the time being? Keeping your funds on an exchange (or in a bank) means they are, quite literally, not your funds. If you don't want the risk of loss, don't give your money to second parties .

That's true for an exchange, but is absolutely not true for a bank (in a well-run modern state). At least if you don't have millions+ of dollars in the bank, the state ensures that even if the bank were fraudulent, your money is still your money.

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

#154

Post by mejutoco »

rippercushions wrote: post #81
nwiswell wrote: post #80

Earlier quoted context omitted.

I said the same thing after the wild times in 2017. Frankly I don't think anyone actually knows.

2021 saw Hollywood A-listers pitching crypto in Super Bowl ads. It's going to take a long, long time for crypto mania to reach a similar peak again.

I was a bit surprised to see crypto.com ads in Qatar football world cup these weeks.

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

#155

Post by simiones »

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."

Sure, if you're ok with the money in your mattress losing 66% of its value in one year, as happened to BTC.

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

#156

Post by joosters »

JumpCrisscross wrote: post #10
anonymoushn wrote: post #6

Earlier quoted context omitted.

It's difficult for anyone to be more shady than the people who stole ten billion dollars from their customers.

> difficult for anyone to be more shady than the people who stole ten billion dollars from their customers We literally don’t know where Binance is. It’s absolutely shadier than FTX, if a better-run scam.

And we don't know who really owns it: "...Mr. Hillmann said he couldn’t provide the name of Binance’s ultimate parent company because Binance over the past year and a half has been in the process of a broad corporate reorganization."

Even if Changpeng Zhao owns the majority of binance.com, the coins might be held by some other legally-distinct entity.

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

#157

Post by flybrand »

jacquesm wrote: post #13
IG_Semmelweiss wrote: post #9

Earlier quoted context omitted.

Yes. Agreed upon procedures is a standard non audit report done with a particular target use case in mind. They can be very valuable or complete garbage. It depends on its design and purpose. The disclosures you quote are standard and would form part of any agreed upon procedures engagement. There is no nefariousness at play. However, the better questions are: 1- Does this report result in meaningful assurance and if…

> There is no nefariousness at play. By Mazars.

How can that claim be made?

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

#158

Post by flybrand »

raverbashing wrote: post #104
woodruffw wrote: post #4

From TFA: > The reserve report, released Wednesday, is a five-page letter from a partner at the South African affiliate of the global accounting firm Mazars. It contained three numbers. The letter wasn’t an audit report, didn’t address the effectiveness of the company’s internal financial-reporting controls, and said Mazars did “not express an opinion or an assurance conclusion,” meaning it wasn’t vouching for the nu…

That's pretty much it They're asking the auditors to tell how many sweets you have in a box, but you can only shake the box and listen to what sound it makes. And not actually do any form of due diligence

Chocolate covered turds look like sweets until it’s too late.

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

#159

Post by cuteboy19 »

unmole wrote: post #131
shapefrog wrote: post #103

Earlier quoted context omitted.

IF they never gambled their depositors money, then they are/will be fine. Running an exchange, taking a cut of all transactions on your platform is effectively impossible to collapse (excluding your actual costs of doing business).

They can even do proprietary trading using the market information they have!

What do you mean by can? Frontrunning client trades is standard crypto exchange practice

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

#160

Post by PeterisP »

Sargos wrote: post #70
jcranmer wrote: post #65

Earlier quoted context omitted.

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

As their licenses (https://support.binance.us/hc/en-us/articles/360050532193) state, it's entirely appropriate to use Binance for transmitting payments, for which they're approved and regulated, and entirely inappropriate to trust Binance for any investment, for which they are not licensed. The key part of being a bank or a broker is about properly holding others' funds as liabilities or in custody respectively (and so are the relevant regulations), which Binance.us can't do.

From the slogan at Binance.com homepage "buy, trade, hold" it's approved to do only the first two.

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