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Binance temporarily suspends USDC withdrawals

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Re: Binance temporarily suspends USDC withdrawals

#71

Post by everfree »

SilverBirch wrote: post #40
plsbenice34 wrote: post #33

Earlier quoted context omitted.

Nobody with basic knowledge in this area would think of USDC as "highly decentralized censorship proof freedom coin". It is centralised and pegged to USD so obviously it must be intentionally interlinked with the banking system.

This is the fiction of Crypto though - we're all here in this space because we want decentralized censorship-proof, public recorded transactions, and we then proceed to immediately abandon all of those principles to trade dollar denominated assets on a central exchange that operates out of a shady jurisdiction. Yes, we all know what the point of crypto was. Yes we all know what is actually happening, the only questio…

> we then proceed to immediately abandon all of those principles to trade dollar denominated assets on a central exchange that operates out of a shady jurisdiction.

Speak for yourself. I don't touch that stuff with a 10-foot pole.

Re: Binance temporarily suspends USDC withdrawals

#72

Post by charcircuit »

hef19898 wrote: post #63
Galanwe wrote: post #56

Earlier quoted context omitted.

> 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 peopl…

Banks are, up to whatever the legally guaranteed deposit insurance is, prepared for bank runs. And I never heard of actual banks limiting or even pausing withdrawls, non-cash, ever. And those cases where they do, e.g. Libanon, are a dead give away the economy is fucked. So, drawing from that parallel, the crypto economy might very well be fucked.

>And I never heard of actual banks limiting or even pausing withdrawls

Most banks pause withdrawals every night. They are only open during the day. You can't just show up at 2 am and be able to withdraw 10 million dollars.

Re: Binance temporarily suspends USDC withdrawals

#73

Post by FBISurveillance »

hef19898 wrote: post #63
Galanwe wrote: post #56

Earlier quoted context omitted.

> 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 peopl…

Banks are, up to whatever the legally guaranteed deposit insurance is, prepared for bank runs. And I never heard of actual banks limiting or even pausing withdrawls, non-cash, ever. And those cases where they do, e.g. Libanon, are a dead give away the economy is fucked. So, drawing from that parallel, the crypto economy might very well be fucked.

"legally guaranteed deposit insurance" up to insurance limit. You're not always guaranteed to get all your money back.

Disclaimer: not defending Binance, not into crypto, just a note.

Re: Binance temporarily suspends USDC withdrawals

#74

Post by hocuspocus »

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.

> People will lose a lot of their hard earned money if that happens.

Nobody forced them to gamble their hard earned money.

Re: Binance temporarily suspends USDC withdrawals

#75

Post by janmo »

jacquesm wrote: post #46
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.

I agree it is editorialising, at the same time this has been a set pattern so far: first temporarily halt withdrawals, then come back with some bs excuse that the money is gone (blame the hacker, bad investments, loans, whatever) and go into bankruptcy.

FTX said something very similar just days before going belly up:

"Stablecoins: processing. Banks are closed for the weekend, though; USD stablecoin creations/redemptions might be slower until wires clear tomorrow, especially for some coins/chains."

https://twitter.com/FTX_Official/status/1589510763328450561

Re: Binance temporarily suspends USDC withdrawals

#76

Post by flumpcakes »

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.

So we shouldn't go after Ponzi schemes or fraud, because the victims money is tied up in the crime?

Re: Binance temporarily suspends USDC withdrawals

#77

Post by joyfylbanana »

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…

Depends on how they communicate with the user. If their terms say that they are allowed to convert other USD-pegged tokens to BUSD, fine.

Re: Binance temporarily suspends USDC withdrawals

#78

Post by readonthegoapp »

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.

Not sure what HN rules are for Tweets, but seems Twitter OP worked very hard to not use the word 'temporarily'.

This post seems like a fair summation to me -- far too kind, actually, if we want to be frank.

Re: Binance temporarily suspends USDC withdrawals

#79

Post by stefan_ »

drexlspivey wrote: post #59
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.

Can't bank run something that's not supposed to be a bank. Remember that goblin SBF tweeting "FTX doesn't use customer deposits"?

Re: Binance temporarily suspends USDC withdrawals

#80

Post by ohgodplsno »

charcircuit wrote: post #72
hef19898 wrote: post #63

Earlier quoted context omitted.

Banks are, up to whatever the legally guaranteed deposit insurance is, prepared for bank runs. And I never heard of actual banks limiting or even pausing withdrawls, non-cash, ever. And those cases where they do, e.g. Libanon, are a dead give away the economy is fucked. So, drawing from that parallel, the crypto economy might very well be fucked.

>And I never heard of actual banks limiting or even pausing withdrawls Most banks pause withdrawals every night. They are only open during the day. You can't just show up at 2 am and be able to withdraw 10 million dollars.

I can withdraw 1k at 2AM in any ATM in the world. The only reason why you can't withdraw 10 million at that time is purely for KYC purposes. Withdrawals aren't paused because the bank doesn't have the money, merely because there's noone physically present to handle it (partly because, even with 10 millions, you're not worth the time of an employee, and because nobody _needs_ to withdraw 10 million suddenly in the middle of the night)
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