Earlier quoted context omitted.
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That's right, HN has authority ... and you are a real psychologist.
ad hominem.
Binance freezes withdrawals of stablecoin USDC as investors pull $2B
121–130 of 309 posts
Re: Binance freezes withdrawals of stablecoin USDC as investors pull $2B
#122USDC is supposed to be the good stablecoin.
SBF was supposed to be the good guy. FTX was supposed to be the good exchange.
It’s crypto. It’s made of lies.
Re: Binance freezes withdrawals of stablecoin USDC as investors pull $2B
#123Are people withdrawing the USDC coins or the USD behind the coins?
These seem to be the most relevant tweets:
https://twitter.com/cz_binance/status/1602579499903852544
https://twitter.com/binance/status/1602708590271385600
I'm not sure why USDC withdrawals were paused rather than trades on USDP/USDC and BUSD/USDC pairs temporarily disabled. I assume there were trade-offs or technical reasons why it was done this way.
Re: Binance freezes withdrawals of stablecoin USDC as investors pull $2B
#124> 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…
So here’s where there might be some confusion, Binance consolidates a pool of different stable coins into 1 “BUSD” balance for its users[0]. Depositing any of these stablecoins into Binance will add to your BUSD balance, and you can withdraw from it as any stablecoin of your choice. What CZ is saying is that they ran out of USDC but have plenty of the other stablecoins instead. It sounds like they need to redeem the other stablecoins to fiat USD and send it to Circle to mint USDC with it, hence the talk about the bank.
[0]https://www.binance.com/en/support/announcement/binance-to-a...
Re: Binance freezes withdrawals of stablecoin USDC as investors pull $2B
#125Re: Binance freezes withdrawals of stablecoin USDC as investors pull $2B
#126Earlier quoted context omitted.
I think there is an important missing part of this argument that many of the current paths to move dollars around that network in the traditional system take either days to settle and/or cost quite a lot in fees. I see crypto having potential to optimize lots of things and introduce extra trust from a technical infrastructure standpoint. Right now my traditional money is sitting in several digital banks or brokerages…
You can absolutely regulate towards the goal of affordable, instantaneous money transfers within the context of the traditional finance system. The EU has done just that with SEPA (Single Euro Payments Area). Here's the SEPA instant credit transfer service (maximum duration of ten seconds): https://www.europeanpaymentscouncil.eu/what-we-do/sepa-insta...
Next year the Federal Reserve will be launching their FedNow service which should provide equivalent functionality to Europe's SEPA or Canada's Interac service.
Re: Binance freezes withdrawals of stablecoin USDC as investors pull $2B
#127Earlier quoted context omitted.
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 b…
>The point being that this is FUD, and HN is pushing something full of it. Which is gross and low bar. With all due respect, the FUD in this thread is coming from you. Taking a look at Binance's announcement about the downtime[1], it mentions withdrawals and deposits both being frozen yesterday morning for a "network upgrade and hard fork", and that ended at about 11PM Eastern[4] yesterday. The withdrawal freeze that…
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Re: Binance freezes withdrawals of stablecoin USDC as investors pull $2B
#128Earlier quoted context omitted.
I will never trust anyone that uses the word "FUD"
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Because it's a nonsensical word that was only used by people to wave away obvious and legitimate criticisms. You don't see analysts reports in finance being called FUD, even when they are critical. That's because in the real world, people deal with and/or respond to criticism. In the crypto fantasy world, all of that is resolved just by calling it "fud".
Re: Binance freezes withdrawals of stablecoin USDC as investors pull $2B
#129Earlier quoted context omitted.
> 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…
I mean, the US Dollar is a "pegged" currency under that definition too. A while ago I read an economic analysis that said the US would optimally have five regional currencies (instead of the single one that it has today) to account for internal trade and wealth imbalances. What makes the US dollar work in practice is the active role the federal government takes to internally rebalance the economy through taxation and…
> A while ago I read an economic analysis that said the US would optimally have five regional currencies (instead of the single one that it has today) to account for internal trade and wealth imbalances.
That seems pretty silly on its face, but I suppose I've been persuaded of stranger things with a good argument.
> I mean, the US Dollar is a "pegged" currency under that definition too.
Yes and no. My point about pegging a currency really is about organizations that tax, borrow, and spend a currency they control. So the US Government has nothing to worry about in that regard. But all of the sub divisions definitely do - various states, counties, and cities regularly flirt with bankruptcy from time to time.
> I expect that sooner rather than later the countries that have adopted the Euro will evolve a similar system, shifting the bulk of the costs of their social programs (pensions, unemployment insurance, medical care, banking insurance, etc.) to the EU itself and giving the EU the power to tax and borrow as needed to maintain those programs. It will be a hard sell to Europe's wealthier economies, since it would be a major transfer of their wealth to Europe's poorer economies, but I suspect a future crisis will force their hands if the alternative is the dissolution of the EU (Brexit has shown everyone how badly leaving the EU can hurt).
I think, that will be a difficult decision point for the EU. I'm just not convinced that enough members want the "United States of Europe". National identity is much stronger in Europe than it ever was in the American Colonies pre-Constitution.
Re: Binance freezes withdrawals of stablecoin USDC as investors pull $2B
#130Earlier quoted context omitted.
Not your key, not your crypto.
Definitely, but why would they not be able to submit a txn to the chain to move a token balance "because bank closed" ??
Likely a lie for less savvy investors. Or they need cash to recapitalize before being able to transfer to wallets. Or people are withdrawing to fiat which would need a bank in many cases. My money is on it being a combination, but that they definitely don’t have reserves to cover a mass run on USDC.