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

161–170 of 194 posts

Re: Binance temporarily suspends USDC withdrawals

#161

Post by onpensionsterm »

sammy2255 wrote: post #99
rhaway84773 wrote: post #95

Earlier quoted context omitted.

Crypto has such a hate boner for Crypto. Destroyed over $2tn in value and is frauds all over the place. Any hate boner HN may have for crypto pales in comparison to what the crypto people have for it.

Oh and the US market too? How much value has that lost this year?

Destroying value and market price are unrelated concepts.

The eternal cognitohazard of discussing crypto online is that you are dealing with deeply invested people without any guarantee that they understand finance in general.

Re: Binance temporarily suspends USDC withdrawals

#162

Post by denton-scratch »

LudwigNagasena wrote: post #114
antupis wrote: post #32

Earlier quoted context omitted.

Problem lies here that dodgy institutions without goverment supervision are issuing stable coins so you never know when some crypto guy is going to do rug pull. But first government backed stable coin which you can buy and sell fast will be huge.

As if government institutions are any more dutiful. The British banknotes still say “I promise to pay the bearer on demand…” as a big FU to all the holders.

...signed by the Governor of the Bank Of England, the oldest central bank in the world, which has never yet reneged on that promise to exchange paper for hard currency.

Re: Binance temporarily suspends USDC withdrawals

#163

Post by Ntrails »

Galanwe wrote: post #93
c7b wrote: post #88

Earlier quoted context omitted.

> 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 withdr…

Holding does not mean holding _now immediately liquid assets_. For the 10000th time: no single broker has ever been instantaneously liquid.

> no single broker has ever been instantaneously liquid.

Really? If Vanguard had to transfer all of my cash and all of my ETF holdings to directly and everyone elses too I would expect that to be zero hassle for them bar the likely collapse of their future business.

Re: Binance temporarily suspends USDC withdrawals

#164

Post by ethanbond »

ivanmontillam wrote: post #160
jacquesm wrote: post #158

Earlier quoted context omitted.

> But we aren't terrorists or tax evaders You aren't but you can bet that plenty of people even if they were not terrorists definitely were evading taxes by using these services, or at a minimum worsening the strength of the local currency. If enough people do that then the effect can be so strong that you end up leaving yourself no alternative. Obviously, a stable currency requires all parties to believe in it, and…

> definitely were evading taxes by using these services, I'm not condoning tax evasion, but in South America if you are on tax evasion and you're not wealthy then you evade taxes by ideological reasons. As a South American citizen, you'd evade taxes for: 1) Choking the government, one cent at a time. 2) If you know the Treasury Dept. of the Local Govt. is going to be looted anyway by corrupt politicians, then why pay…

And all of this is supposed to be an argument for the US not to enforce its laws against institutions that enable such activity?

Re: Binance temporarily suspends USDC withdrawals

#166

Post by gizzlon »

crypt1d wrote: post #157
gizzlon wrote: post #148

Earlier quoted context omitted.

> Your USDC deposits are automatically converted to BUSD Guess this is not new, but it seems like an obviously horrible idea!! The minute people lose confidence, the value of BUSD go do down and people will withdraw in not-BUSD. Meaning they will have to make more BUSD to cover the difference, devaluing the BUSD more, causing a spiral. What am I missing here? Hmm..

Not sure I follow. Why would they mint BUSD if people are withdrawing other coins? BUSD is just USD denominated in tokens on chain, each token represents 1 usd at their bank so they cannot (or rather, should not) mint more than they have in custody.

Yeah, but what happens if it's not worth 1 $ anymore?

My understanding is limited, but naively:

  - I give them 10 USDC
  - They convert it to 10 BUSD
  - Price of BUSD falls to 0.5$
  - I want my 10 USDC back
  - They have to sell 20 BUSD to get 10 USDC
  - They have to generate 10 BUSD ??
I'm sure this is not how it actually works, but you get my point.

Also, one could argue that if the BUSD price drops against the dollar they should have more BUSD ? Or how does that work? :)

Re: Binance temporarily suspends USDC withdrawals

#167

Post by kybernetikos »

wikfwikf wrote: post #104
kybernetikos wrote: post #42

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.

Sure, but the point is that

> What's so weird about these stable coins is that there's no money to be made with them (for the end user).

Doesn't tell the whole story - it is possible to seek returns from owning stable coins.

Re: Binance temporarily suspends USDC withdrawals

#168

Post by friendzis »

Galanwe wrote: post #83
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.

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.

> 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 deposit Shmollars to a regulated brokerage they will hold my Shmollars in Shmollar denominated account and upon request will instantly (subject to technicalities of the transfer) transfer those Shmollars back. No FX swap needed.

Now if they convert those Shmollars to anything else without my explicit request then they are no longer a brokerage and more comparable to an unregulated bank. Which is what Binance apparently did.

Re: Binance temporarily suspends USDC withdrawals

#169

Post by eternalban »

ohgodplsno wrote: post #136
charcircuit wrote: post #101

Earlier quoted context omitted.

>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.

Is the tweet then a canary in the coal mine signal for special friends that can’t be called directly?

Re: Binance temporarily suspends USDC withdrawals

#170

Post by hocuspocus »

beaker52 wrote: post #141

As an observer, the schadenfreude around crypto is unreal. If you want to see crypto fail, and jump on opportunities to spread FUD, to eventually prove your position and briefly smugly walk around saying "I told you so", then that's disgraceful.

Well, we're just having fun staying poor.
Post reply on HN