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Binance freezes withdrawals of stablecoin USDC as investors pull $2B

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Re: Binance freezes withdrawals of stablecoin USDC as investors pull $2B

#81

Post by salawat »

Sebguer wrote: post #61
latchkey wrote: post #40

I'm not defending Binance in any way, but this is FUD that is getting blown out of the water (arguably, people are on edge these days). It was pre-announced downtime for a hardfork on their BSC chain. https://twitter.com/cz_binance/status/1602510004795367424 It has caused a bit of a bank run and cz says things are processing just fine (along with tons of 3rd party confirmations). https://twitter.com/cz_binance/status…

"A bit of a bank run" is like saying "a small nuclear bomb".

Interesting that a bank run, (non-banks restoring theor fiscal custody of their own money, leaving the banking empty) is considered analogous to a weapon of mass destruction.

What's so taboo about everyone having their own money in hand?

Re: Binance freezes withdrawals of stablecoin USDC as investors pull $2B

#82

Post by twelve40 »

jqpabc123 wrote: post #42
schemescape wrote: post #21

Earlier quoted context omitted.

Any idea why a New York bank is relevant then (per CZ)?

Probably because the USDC is being held in a real bank account controlled by some unknown 3rd party who lives in some country without an extradition treaty. Gives you a warm, fuzzy, secure feeling that everything is perfectly safe doesn't it?

how can USDC be held in a real bank account? doesnt make sense

Re: Binance freezes withdrawals of stablecoin USDC as investors pull $2B

#83

Post by latchkey »

jjulius wrote: post #78
latchkey wrote: post #40

I'm not defending Binance in any way, but this is FUD that is getting blown out of the water (arguably, people are on edge these days). It was pre-announced downtime for a hardfork on their BSC chain. https://twitter.com/cz_binance/status/1602510004795367424 It has caused a bit of a bank run and cz says things are processing just fine (along with tons of 3rd party confirmations). https://twitter.com/cz_binance/status…

>I'm not defending Binance in any way, but this is FUD that is getting blown out of the water (arguably, people are on edge these days). It was pre-announced downtime for a hardfork on their BSC chain. > https://twitter.com/cz_binance/status/1602510004795367424 >It has caused a bit of a bank run and cz says things are processing just fine (along with tons of 3rd party confirmations). > https://twitter.com/cz_binance/…

Weird flex, I'm fine with my comment and promise that I won't edit it any further.

Yes, the downtime was yesterday, scroll up on the thread that I quoted. The FUD started with this tweet:

https://twitter.com/Travis_Kling/status/1602400700192985100

The point being that this is FUD, and HN is pushing something full of it. Which is gross and low bar.

If Binance does go belly up, it won't be because of USDC withdrawals being paused. It will be a lot deeper than that and will likely cover USDT, since the majority of their customers are outside of the US (or at least should be, legally) and because, well, USDT.

Hours after that tweet you quoted (which was at 12am), things are processing as normal.

Re: Binance freezes withdrawals of stablecoin USDC as investors pull $2B

#84

Post by nordsieck »

notch656a wrote: post #74
wpietri wrote: post #60

Earlier quoted context omitted.

> US dollar-like liquidity and value preservation without US dollar financial regulation. Or in other words, they'd like the benefits of regulation without the costs of regulation. Which I certainly appreciate. As a child my plan for adulthood was desserts all the time, no vegetables ever.

More like they trusted two (well actually three if you count US gov) centralized entities instead of one. It's like asking permission from both momma and pappa to eat desert. They should have just depended on the single entity backing USDC rather than putting themselves in a situation where they'd be also be fucked if Binance froze by leaving their tokens on exchange. When you put USD backed stablecoin on exchange yo…

> America decided dollars should float in the 70s, and most of the world followed.

Except that a bunch of countries in Europe went back to pegged currency with the Euro[1]. Part of the reason the 2008 crisis hit countries like Italy, Greece, and Ireland so hard.

---

1. Yes - the Euro is not technically pegged; but effectively, it's the same thing. Each individual country in the Eurozone can't engage in independent monetary policy.

Re: Binance freezes withdrawals of stablecoin USDC as investors pull $2B

#85

Post by notch656a »

nordsieck wrote: post #84
notch656a wrote: post #74

Earlier quoted context omitted.

More like they trusted two (well actually three if you count US gov) centralized entities instead of one. It's like asking permission from both momma and pappa to eat desert. They should have just depended on the single entity backing USDC rather than putting themselves in a situation where they'd be also be fucked if Binance froze by leaving their tokens on exchange. When you put USD backed stablecoin on exchange yo…

> America decided dollars should float in the 70s, and most of the world followed. Except that a bunch of countries in Europe went back to pegged currency with the Euro[1]. Part of the reason the 2008 crisis hit countries like Italy, Greece, and Ireland so hard. --- 1. Yes - the Euro is not technically pegged; but effectively, it's the same thing. Each individual country in the Eurozone can't engage in independent mo…

Euro floats.

Re: Binance freezes withdrawals of stablecoin USDC as investors pull $2B

#86

Post by adrr »

jjulius wrote: post #78
latchkey wrote: post #40

I'm not defending Binance in any way, but this is FUD that is getting blown out of the water (arguably, people are on edge these days). It was pre-announced downtime for a hardfork on their BSC chain. https://twitter.com/cz_binance/status/1602510004795367424 It has caused a bit of a bank run and cz says things are processing just fine (along with tons of 3rd party confirmations). https://twitter.com/cz_binance/status…

>I'm not defending Binance in any way, but this is FUD that is getting blown out of the water (arguably, people are on edge these days). It was pre-announced downtime for a hardfork on their BSC chain. > https://twitter.com/cz_binance/status/1602510004795367424 >It has caused a bit of a bank run and cz says things are processing just fine (along with tons of 3rd party confirmations). > https://twitter.com/cz_binance/…

Do we know what token they swapped USDC for? Why would you swap a stable coin for another token? Didn't FTX swap coins for their native currency and use the proceeds for Alameda?

Re: Binance freezes withdrawals of stablecoin USDC as investors pull $2B

#87

Post by spookthesunset »

neilv wrote: post #14

Whenever there are runs on businesses in the "crypto" scam space, I wonder whether the withdrawals/cashouts that did/do get through are connected to whomever runs that business, before slamming the door on unconnected people.

Of course that is what happened. It’s crypto. It’s scams and exit scams all the way down. Always was always will be.

Re: Binance freezes withdrawals of stablecoin USDC as investors pull $2B

#88

Post by fallingknife »

dboreham wrote: post #65
Octokiddie wrote: post #22

> The world's biggest crypto exchange will freeze all withdrawals of USD Coin while it conducts a "token swap" to boost its holdings of the dollar-pegged cryptocurrency, the crypto group's CEO Changpeng Zhao said Tuesday It's worth noting that USDC is not even a token controlled by Binance. It's controlled and issued by Circle. So effectively, Binance is refusing to honor its commitment to depositors to give them the…

Wait...they're refusing to allow on-chain transfer of USDC from their custodial account to a customer's wallet? I assumed this was about exchange of USDC to fiat, hence the hand waving about banks.

Not your key, not your crypto.

Re: Binance freezes withdrawals of stablecoin USDC as investors pull $2B

#89

Post by flamemyst »

Octokiddie wrote: post #22

> The world's biggest crypto exchange will freeze all withdrawals of USD Coin while it conducts a "token swap" to boost its holdings of the dollar-pegged cryptocurrency, the crypto group's CEO Changpeng Zhao said Tuesday It's worth noting that USDC is not even a token controlled by Binance. It's controlled and issued by Circle. So effectively, Binance is refusing to honor its commitment to depositors to give them the…

You misses where Binance doing automatic conversion for any deposited USDC to BUSD. So every USDC deposit will counted as BUSD.

Withdrawal using BUSD and USDT is still available. Even USDC on some chain are still open. As I understand they just need time to replenish their USDC.

BUSD is released by Paxos.

Re: Binance freezes withdrawals of stablecoin USDC as investors pull $2B

#90

Post by FrameworkFred »

tnel77 wrote: post #23

“Crypto sucks. This is proof.” Exchanges going under proves that people are greedy and/or stupid, but it doesn’t inherently mean every crypto project is bad. It doesn’t seem like people holding their own keys are having a bad time right now. Sure, prices of these assets are down, but a hardware wallet is an easy way to make sure your assets don’t end up being given away during a bankruptcy proceeding.

I agree. I don't think paper money is a bad idea because some countries finance their operations by printing as much as they need.

I do suspect that blockchain's killer app may not be tradeable securities, or rights, but something more mundane like Walmart's inventory reconciliation system.

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