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Binance temporarily suspends USDC withdrawals

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Re: Binance temporarily suspends USDC withdrawals

#81

Post by hef19898 »

FBISurveillance wrote: post #73
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.

"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.

Depending on jurisdiction, and your net worth in cash deposits, well you very well are. In the EU each single account is guaranteed up to 100k Euro cash, anything above that is quite often subject to bank specifoc guarabtees and insurances. Also, banks are, since 2008, undergoing regular stress tests. They always have published audited balance sheets, have rules and regulations around the use of customer deposits, which again are controlled. Heck, even during the Wirecard collapse nobody lost deposited money as far as I am aware.

As soon as a bank fails to provide audited balance sheets, authoroties can step in and halt operations. Mainly to make sure customers deposits are still there and can be withdrawn by the legal owners. It is almost hilarious how Crypto is relearning, at a redicioulous pace, all the lessons tradotional finance and banks learned over the last 100 odd years. And still fails to see that all the answers are already there. In a sense, it is almost peak start-up cliche disruption. Can almost be a good thing so.

Re: Binance temporarily suspends USDC withdrawals

#82

Post by mikelovenotwar »

cypress66 wrote: post #66
mikelovenotwar wrote: post #51

Earlier quoted context omitted.

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 spiri…

Your entire comment hinges on the idea that Binance is a scam, which nobody knows for a fact. And I would hope binance is not a scam, so people don't lose their money.

>Your entire comment hinges on the idea that Binance is a scam, which nobody knows for a fact.

I make no mention of Binance as a scam. The entire industry is a ponzi scheme, Binanace are a large player in the game.

Re: Binance temporarily suspends USDC withdrawals

#83

Post by Galanwe »

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.

How did you end up comparing Binance to a bank? The closest equivalent to what Binance is would be a broker.

Now I challenge you to find any broker on the planet that can promise instant FX swap settlement on the same day for a cash account.

Don't compare apples and bananas.

Re: Binance temporarily suspends USDC withdrawals

#84

Post by Johanx64 »

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.

Explain why people here hate crypto so much.

Re: Binance temporarily suspends USDC withdrawals

#85

Post by hef19898 »

ohgodplsno wrote: post #80
charcircuit wrote: post #72

Earlier quoted context omitted.

>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 mid…

You could, following regulatory and bank internal processes, trabsfer those ten million in one go to any bank account in the world so. Assuming you have internet and a phone.

It is not like Binace is limiting cash withdrawls, they a halting wire trabsfers. For me that's a dead sign the money isn't there anymore.

Re: Binance temporarily suspends USDC withdrawals

#87

Post by mikelovenotwar »

stefan_ wrote: post #79
drexlspivey wrote: post #59

Earlier quoted context omitted.

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"?

> Remember that goblin SBF tweeting "FTX doesn't use customer deposits"?

Coming to a court room soon :)

Re: Binance temporarily suspends USDC withdrawals

#88

Post by c7b »

Galanwe wrote: post #56
janmo wrote: post #37

Earlier quoted context omitted.

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 peopl…

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

Binance is a broker, not a bank. A bank run on a broker simply shouldn't be possible. A broker is supposed to hold whatever the customers want to hold on their behalf (in so-called segregated accounts, so that the assets belong to the users, even if the broker should go bankrupt). If the users want to withdraw, you just give them whatever you were holding on their behalf.

A broker is not supposed to invest users' funds into something else. If you're acting honestly as a broker, there can't be a mismatch between users' deposits and their assets. Don't fall for this nonsense touted by SBF, the problem is that they are acting dishonestly (and cluelessly, it seems), not that there was any sort of unfortunate liquidity crisis or whatever.

Re: Binance temporarily suspends USDC withdrawals

#89

Post by rhaway84773 »

Galanwe wrote: post #56
janmo wrote: post #37

Earlier quoted context omitted.

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 peopl…

What a ridiculous statement.

Every legitimate exchange is prepared for a “bank run”. because they don’t behave like banks since they’re exchanges.

Being exchanges, they have your money in exactly the form that shows up in your account.

Binance (and FTX before that) apparently doesnt, because it’s behaving like a bank and lending out your money despite claiming to be an exchange and not a bank.

Re: Binance temporarily suspends USDC withdrawals

#90

Post by ls15 »

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.

I've seen a bank branch being temporarily out of cash and hence pausing withdrawals in a relatively functioning economy before. Happens.

ATMs at my bank in Germany were down because of a strike.

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