Hacker News Board Hacker News, browsed like a classic message board
Live data from Hacker News

Binance temporarily suspends USDC withdrawals

twitter.com

Post reply on HN
Print view View original

101–110 of 194 posts

Re: Binance temporarily suspends USDC withdrawals

#101

Post by charcircuit »

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…

>Withdrawals aren't paused because the bank doesn't have the money, merely because there's noone physically present to handle it

Which is what is happening to Binance.

Re: Binance temporarily suspends USDC withdrawals

#102

Post by ethanbond »

ivanmontillam wrote: post #55
jacquesm wrote: post #43

Earlier quoted context omitted.

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], whi…

There are plenty of ways to transact money if you’re not creditworthy. What’s “missing” is a non-fraudulent way to get credit if you’re not creditworthy, and that has nothing to do with US enforcement of fraud and everything to do with the fact that only fraudulent lenders will lend to non-creditworthy people.

Re: Binance temporarily suspends USDC withdrawals

#103

Post by hocuspocus »

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.

The funniest thing is that you're completely wrong, we (the haters on HN) aren't trying anything, we don't need to.

If the entire thing collapses we won't even be able to take credit since it was put in motion by CZ himself.

Re: Binance temporarily suspends USDC withdrawals

#104

Post by wikfwikf »

kybernetikos wrote: post #42
AdamN wrote: post #14

Earlier quoted context omitted.

What's so weird about these stable coins is that there's no money to be made with them (for the end user). They're 'stable' so have no upside but they're non-redeemable when things aren't working and have a real probability of going straight to zero at any given moment. I'd get it for some volatile coin where the risk is potentially worth it but holding these for more than a few days for clearing (?) doesn't make sen…

Quite a few people want to borrow stable coins and are prepared to do so at interest.

Yes, to short them.

Re: Binance temporarily suspends USDC withdrawals

#105

Post by causi »

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.

As crypto emerges from early adopter status, the "crypto-bro/normal person" ratio of the victims decreases over time, therefore the earlier it crashes the larger a portion of the victims are people who deserve it and should've known better. It should burn down as soon as possible to protect the innocent.

Re: Binance temporarily suspends USDC withdrawals

#106

Post by vineyardmike »

jacquesm wrote: post #54
vineyardmike wrote: post #47

Earlier quoted context omitted.

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.

Yea that’s what I meant. Doing their own shady thing.

Re: Binance temporarily suspends USDC withdrawals

#107

Post by hef19898 »

charcircuit wrote: post #101
ohgodplsno wrote: post #80

Earlier quoted context omitted.

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…

>Withdrawals aren't paused because the bank doesn't have the money, merely because there's noone physically present to handle it Which is what is happening to Binance.

Impossible to tell apart without properly prepared, and audited, balance sheets.

Re: Binance temporarily suspends USDC withdrawals

#108

Post by crypt1d »

I honestly expected more from the HN crowd. The comments here are disturbingly inaccurate and fear mongering. For those of you that don't want to sift through the BS and just get the gist (from someone deep in this space):

- Binance suspended USDC withdrawals. You can still withdraw in other stablecoins, fiat, or crypto. You can withdraw BUSD and swap to USDC on another exchange (dex). So really, this is not a big deal.

- The reason why this happened is - a while ago, Binance started automatically converting user USDC to BUSD upon deposits. Since then, we've then seen large amounts of USDC being sent to Circle from Binance, supposedly for redemption purposes.

- This now (likely) means that Binance has a lot of cash on hand, but not enough USDC to process the current withdrawal frenzy. So they have to go to their redemption bridge and convert their cash back to USDC. As such, the explanation given by CZ is very plausible.

- Withdrawal suspensions are not an uncommon occurrence on Binance, or any other exchange for that matter. You are only noticing this now because the market participants suffer from PTSD from other exchanges going under and the effect of the news is amplified.

- The fear seems to be largely coming from people associating the withdrawal suspension with the recent FTX fiasco. However, and especially without understanding the context of those suspensions, its important to remember - correlation does not mean causation.

- It also comes from people expecting Binance to have USDC at 1:1 ratio liquid, but thats not the case due to the auto conversion mentioned, and explained, by Binance.

- Its also worth noting that BUSD is not a Binance product. Its managed by Paxos, which is a separate entity.

Ultimately, the r/r here is clear: it takes little effort to withdraw and stay safe, but the downside is huge if Binance goes under. So its natural for people to decide to withdraw even when chances of it blowing up are slim.

Withdraw your coins if you are worried, preferably via fiat to a bank. But, please, don't go around spreading panic about things you don't understand or lack the context to judge.

Re: Binance temporarily suspends USDC withdrawals

#109

Post by janmo »

crypt1d wrote: post #108

I honestly expected more from the HN crowd. The comments here are disturbingly inaccurate and fear mongering. For those of you that don't want to sift through the BS and just get the gist (from someone deep in this space): - Binance suspended USDC withdrawals. You can still withdraw in other stablecoins, fiat, or crypto. You can withdraw BUSD and swap to USDC on another exchange (dex). So really, this is not a big de…

FTX a few 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

I also I would like to add that:

- USDC on Binance is not 1:1 backed by USDC, but by another stable coin such as BUSD or perhaps even USDT. Both of them are much harder to convert into real dollars!

- Binance is obviously not prepared for a bank run, this is happening on a Monday/Tuesday, not even a weekend, and the withdrawals issued started yesterday while the banks where open! As of this post, USDC withdrawals have been suspended for at least 14 hours!

Source: https://twitter.com/Cryptolicious9/status/160241155175102464...

Re: Binance temporarily suspends USDC withdrawals

#110

Post by notpushkin »

hef19898 wrote: post #94
Galanwe wrote: post #83

Earlier quoted context omitted.

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.

If I have someobe holding my crypto currency , that is as close to a crypto bank as it gets. Otherwise crypto woupdn't be money but some form of security. In which case, one has to ask, it is not regulated as such. And show me one broker that refused, regardless of transaction fees or other contractual stuff, customer wothdraels of funds. Other than those brokers that actually "lost" customer funds. Which is, by the…

So if a securities broker is holding my USD, does this make USD a form of security and specifically not money?
Post reply on HN