Earlier quoted context omitted.
Quite a few people want to borrow stable coins and are prepared to do so at interest.
Yes, to short them.
And the shell game continues ;)
Binance temporarily suspends USDC withdrawals
131–140 of 194 posts
Re: Binance temporarily suspends USDC withdrawals
#132Earlier 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.
Binance replacing USDC with BUSD is not having USDC reserves. If Binance had USDC reserves they would not need to burn BUSD, mint USDC or require banks to be open. Because Binance already would hold the USDC. Likewise if something happened to the value of BUSD, it should be fine, because you hold USDC. Except you don't because Binance replaced the coins they were supposedly holding in custody for you.
1. It was said that Binance treats BUSD and USDC as the same currency
2. It was said that there is a high number of USDC withdrawals
If Binance had USDC reserves they would not need to burn BUSD
Re: Binance temporarily suspends USDC withdrawals
#133Earlier quoted context omitted.
I try not to be like that, but sometimes it appears like so. Most of the time it's truly hard to see any alternative explanation, and I invest a lot to have the most nurtured worldview possible, with all the points of view considered. And even then, it's really hard to think in plausible alternative explanations that do not feel like pulling hair out of the head. It's like duck typing : walks like a duck, quacks like…
The US Department of Justice suspects Binance of processing over $10 billion in illicit funds during 2022 alone. Whatever goes on in Argentinian P2P markets is an insignificant blip against this background. It sounds like you have a bit of a persecution complex going on. It's unfortunate if the effects on your corner of the world are negative, but it's really not even on the Americans' map most of the time. How about…
Because such a company would need to be regulated. I'm not against regulation, the problem is that once you get regulation you also accept to use the legal currency exchange rate, which is expensive for most use cases.
Let me provide accurate, real-world examples:
- 1 USD = 171.276 ARS (according to XE's website, this is the official exchange rate).
- 1 USD = 311.25 ARS (according to Binance's P2P exchange, this is the parallel/black market rate).
In Argentina, most stuff is valued in USD, even if the legal tender is ARS. If you were to buy a $2500 ARS burger with Binance money, that burger costs you $8.03 USD. If you were to buy that same exact burger with a licensed properly regulated exchange, that burger costs you $14.59 USD, almost the double.
This might seem like a trivial example, and a few dollars don't seem to make much of a difference. Try the same example with your weekly grocery store basket, rental apartments, payments of a car, etc. It all adds up and most people here don't earn more than $300 USD monthly (valued in black market exchange rate, of course).
Plus, Argentina and Venezuela are heavily taxed.
EDIT: Formatting of the example.
Re: Binance temporarily suspends USDC withdrawals
#134If their PAX/BUSD -> USDC conversion only works during the opening hours of that New York bank, wouldn't this be well-known to everyone who tried to convert to USDC in the past? As in, what "situation" are they talking about? Going only from their tweet, there is nothing out of the ordinary happening at all...
In theory, this is related to their recent automated BUSD USDC conversion program. They started treating the two as fungible, and so have split reserves between the two (likely BUSD for the most part). If your reserves of USDC get drained faster than you can replenish, then you can't withdraw more USDC (even though it's backed since you have a BUSD waiting to convert). Such a system runs along just fine, until sudden…
Ah ok. Yeah, them using up their stock of USDCs so they have to wait now until they can buy more would actually make sense.
Re: Binance temporarily suspends USDC withdrawals
#135The first crypto business that hires a PR person to take over all tweeting will rule the space. I can’t watch people destroy so much value solo tweeting anymore. The same goes for almost any business or celebrity I can think of.
[dead]
Re: Binance temporarily suspends USDC withdrawals
#136Earlier 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.
No. When I can't withdraw, it's because my bank teller is sleeping.
Binance has a bank teller, but he's telling you "uh hold on we need to buy your money from another teller that's sleeping because we don't actually have it. Do you want to get our monopoly money instead?"
Binance is about to pull the rug.
Re: Binance temporarily suspends USDC withdrawals
#137Earlier quoted context omitted.
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.
Well, housing Nazis tends to put you on, at the very least, a "tread with caution" international list, not to mention on the very infamous Mossad's "blacklist". Argentina and Switzerland are their black sheep for housing Nazis and stealing the Jewish gold.
That happened 70 years and many governments ago and has absolutely no bearing on international dealings with either Switzerland or Argentina today any more than that dealings with Germany do and has nothing at all to do with Binance.
Re: Binance temporarily suspends USDC withdrawals
#138Earlier quoted context omitted.
I try not to be like that, but sometimes it appears like so. Most of the time it's truly hard to see any alternative explanation, and I invest a lot to have the most nurtured worldview possible, with all the points of view considered. And even then, it's really hard to think in plausible alternative explanations that do not feel like pulling hair out of the head. It's like duck typing : walks like a duck, quacks like…
The solution to that particular problem is simple, but it won't be found outside of Argentina. Think of it this way: if the fate of a country depends on a company that is not even physically present in that country then your problems are of an entirely different nature. Obviously other countries are not going to hold back on regulatory oversight of financial institutions because of some kind of persecution complex el…
No, Argentina is not heading in the right direction in that sense.
The economic situation has worsened for the commoner, everything gets more expensive gradually. People have started making concessions on what to buy or not.
The government is not fixable at this point, because of the populist agenda (same as Venezuela, but less deadly).
> if anything Argentinians will benefit from this because there are fewer ways in which they can lose their money.
It turns out the easiest way to lose the money is to keep it sitting at an Argentinian bank. The devaluation is just too violent. If you want to track how to country is doing, please track the black market exchange rate (which is why I claim in my original comment as the true king of the market). Tracking the official exchange rate as you're probably are doing, is not an effective measure as it's seldom used for transactions.
For a practical example, see [0].
--
Re: Binance temporarily suspends USDC withdrawals
#139Earlier quoted context omitted.
The US Department of Justice suspects Binance of processing over $10 billion in illicit funds during 2022 alone. Whatever goes on in Argentinian P2P markets is an insignificant blip against this background. It sounds like you have a bit of a persecution complex going on. It's unfortunate if the effects on your corner of the world are negative, but it's really not even on the Americans' map most of the time. How about…
Because such a company would need to be regulated. I'm not against regulation, the problem is that once you get regulation you also accept to use the legal currency exchange rate, which is expensive for most use cases. Let me provide accurate, real-world examples: - 1 USD = 171.276 ARS (according to XE's website, this is the official exchange rate). - 1 USD = 311.25 ARS (according to Binance's P2P exchange, this is t…
The legal currency exchange rate in Argentina is a local problem, not an international one. This is not rare in countries with weak local currencies but it is a bit strange to blame the issuer of the currency that you chose to use privately for your troubles. In the former SovBloc countries the USD and the DM were the currencies of choice for the black market, and the official exchange rate was something ludicrous (you were even forced to exhange a certain amount per day at those rates as a tourist), but on the black market prices were entirely different showing the true value of the local currency (something slightly above the value of the paper it was printed on). That wasn't the fault of either the USA or Germany, that was entirely the fault of the party in charge at the time.
One problem with looking at the world through the lens of blaming others for local issues that you declare them in essence unfixable. If you find a way to make such a problem a local one you can actually do something about it.
Re: Binance temporarily suspends USDC withdrawals
#140Earlier quoted context omitted.
The solution to that particular problem is simple, but it won't be found outside of Argentina. Think of it this way: if the fate of a country depends on a company that is not even physically present in that country then your problems are of an entirely different nature. Obviously other countries are not going to hold back on regulatory oversight of financial institutions because of some kind of persecution complex el…
No, Argentina is not heading in the right direction in that sense. The economic situation has worsened for the commoner, everything gets more expensive gradually. People have started making concessions on what to buy or not. The government is not fixable at this point, because of the populist agenda (same as Venezuela, but less deadly). > if anything Argentinians will benefit from this because there are fewer ways in…
I didn't say 'is', I said 'was'.