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Binance temporarily suspends USDC withdrawals

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Re: Binance temporarily suspends USDC withdrawals

#51

Post by mikelovenotwar »

andrewinardeer wrote: post #39
mikelovenotwar wrote: post #34

Hopefully another big player in the global ponzi scheme hitting the wall soon.

Maybe, maybe not. But your comment comes off as mean spirited. People will lose a lot of their hard earned money if that happens. Sometimes people's empathy doesn't travel past their own personal horizon which seems to be the case with your comment.

I wish for large international ponzi schemes to cease to be, preventing further influx from people who don't know better. For those already in the ponzi scheme there's little that can be done to convince them they're in a ponzi scheme, or cult.

People lose their money on many things, hard earned or otherwise, regardless wishing that avenues which are designed to facilitate such losses cease to exist is not mean spirited.

Re: Binance temporarily suspends USDC withdrawals

#52

Post by Proven »

joyfylbanana wrote: post #16
madsbuch wrote: post #12

Earlier quoted context omitted.

They do, Both USDC and BUSD are backed by actual dollars. Ie. 1. Burn 1 BUSD 2. Withdraw that 1 dollar 3. Deposit it with the USDC account 4. Mint one USDC However, that requires that banks are open.

Probably not dollars, but some kind of low-risk assets like USD bonds? In that case you also can't just withdraw dollars, you have to sell the bonds - if they have to convert large amount like hundreds of millions, the spread on those bonds might get larger. Also even though it were just dollars in a regular bank account, when the amounts go large enough, the bank might have liquidity issues of their own. What would…

No post body was provided.

Re: Binance temporarily suspends USDC withdrawals

#53

Post by jacquesm »

madsbuch wrote: post #12
joyfylbanana wrote: post #9

Earlier quoted context omitted.

I think what is interesting here is that they clearly don't have 1:1 USDC reserves. And as their compliance has been questioned by many in the past might be that they might not be able to convert large amounts of BUSD to USDC, not at least cheaply.

They do, Both USDC and BUSD are backed by actual dollars. Ie. 1. Burn 1 BUSD 2. Withdraw that 1 dollar 3. Deposit it with the USDC account 4. Mint one USDC However, that requires that banks are open.

This is all predicated on them having the money in the first place. That may well not be the case.

Re: Binance temporarily suspends USDC withdrawals

#54

Post by jacquesm »

vineyardmike wrote: post #47
joyfylbanana wrote: post #10

Earlier quoted context omitted.

Yes they do, they announced it a while back. It is certainly interesting way to handle customer assets.

In some horribly twisted way, it might make sense? If BUSD is a “safe” stable coin backed by real, liquid, currency in a binance bank account (lots of IFs), it might make more sense as accounting than storing it as USDC stored in another company’s bank account, in that other company’s country. If that company makes bad decisions, it could impact binances customers. Especially after FTX and prior stablecoin fiascos, s…

> hiding it in their own coffers

Or they have spent it or given it out in bad loans.

Re: Binance temporarily suspends USDC withdrawals

#55

Post by ivanmontillam »

jacquesm wrote: post #43
ivanmontillam wrote: post #38

What I fear is that U.S. Government is meddling with the only exchange that works properly in Venezuela and Argentina, especifically for the P2P trade. I know this tweet is not about P2P, but let me explain. In Venezuela and Argentina, the parallel markets are the true king of the economy. You have to exchange money using P2P exchanges if you want to barely have decent personal finances, you know, to access good curr…

The government isn't 'meddling' with Binance, Binance is under the spotlight because it appears that keeping reserves is a bit of a weak point with all of these new finance companies. If anything you should be grateful that there (finally) is some oversight, but I fear it is too little and too late.

I have to disagree.

That oversight in theory is good. In practice it turns out to be: "The OFAC and FATF hate your people as a whole. We cannot service you anymore. Kthxbai."

I will trust regulators when regulators do not exclude people where systems would be most useful. It all boils down to: if you're not credit worthy, you must be a terrorist, capomafia or at best, a tax evader.

See what happened to Uphold[0], which is unfortunate.

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[0]: https://support.uphold.com/hc/en-us/articles/6782239879451-W...

Re: Binance temporarily suspends USDC withdrawals

#56

Post by Galanwe »

janmo wrote: post #37
sho wrote: post #30

The quotes around "temporarily" are editorialising, IMO. They should be removed. No fan of Binance but it's a reasonable explanation and submitter has given no reason to think it is not, indeed, a temporary situation, as has happened many times in the past without particular note.

It is not reasonable at all. It means that: 1. They are not prepared at all for a "bank run" 2. USDC on the exchange are not backed by real USDC. Therefor they need to market buy them. 3. CZ is telling people to withdraw using BUSD and USDT, both more or less Binance controlled stables that are much harder to convert into real USD. It would be extremely wise to exit Binance and Binance related coins such as BNB, BUSD…

> They are not prepared at all for a "bank run"

Nobody is prepared for a bank run, that would be idiotic. It would mean storing strictly only liquid assets.

> USDC on the exchange are not backed by real USDC. Therefor they need to market buy them.

That's pure speculation on your side... Withdrawal pauses have happened many times in the past, it's not really alarming. Only when something bad happens afterward do people remember there was a withdrawal pause before, but there has been countless pauses before with no problem afterward.

> Binance and Binance related coins such as BNB, BUSD and Tether.

What...

Re: Binance temporarily suspends USDC withdrawals

#58

Post by unsigner »

jacquesm wrote: post #43
ivanmontillam wrote: post #38

What I fear is that U.S. Government is meddling with the only exchange that works properly in Venezuela and Argentina, especifically for the P2P trade. I know this tweet is not about P2P, but let me explain. In Venezuela and Argentina, the parallel markets are the true king of the economy. You have to exchange money using P2P exchanges if you want to barely have decent personal finances, you know, to access good curr…

The government isn't 'meddling' with Binance, Binance is under the spotlight because it appears that keeping reserves is a bit of a weak point with all of these new finance companies. If anything you should be grateful that there (finally) is some oversight, but I fear it is too little and too late.

My Argentinian friends tend to view everything that happens in Argentina as part of either some nefarious plot by the US government, or the glorious struggle of the brave Argentinian people against the US government. They would certainly view anything that happens with Binance, or even FTX/SBF as the US government trying to screw them over.

Re: Binance temporarily suspends USDC withdrawals

#59

Post by drexlspivey »

sho wrote: post #30

The quotes around "temporarily" are editorialising, IMO. They should be removed. No fan of Binance but it's a reasonable explanation and submitter has given no reason to think it is not, indeed, a temporary situation, as has happened many times in the past without particular note.

People hate crypto so much in here they are actually trying to start a bank run.

Re: Binance temporarily suspends USDC withdrawals

#60

Post by ivanmontillam »

londons_explore wrote: post #50
ivanmontillam wrote: post #38

What I fear is that U.S. Government is meddling with the only exchange that works properly in Venezuela and Argentina, especifically for the P2P trade. I know this tweet is not about P2P, but let me explain. In Venezuela and Argentina, the parallel markets are the true king of the economy. You have to exchange money using P2P exchanges if you want to barely have decent personal finances, you know, to access good curr…

> They just do not have the capacity nor good exchange rates They could grow very rapidly if the customer base were to show up and demand it. I bet within a week they could 10x - at least for basic functions of deposit, exchange, withdraw.

And then become big enough to appear in the radar of regulators.

I elaborate more on this at[0].

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[0]: https://news.ycombinator.com/item?id=33966948

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