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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

#151

Post by capitalreqs »

thedangler wrote: post #104
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…

And it will eventually because the FED turned off the fractional reserve requirements. On March 15th, the Fed lowered the fractional reserve requirement to 0%. Yet, since that day banks have been hoarding cash like never before. pic.twitter.com/jpYF4Ypzjq — Mati Greenspan (tweets ≠ financial advice) (@MatiGreenspan) April 13, 2020 So, a bank can lend out what ever it wants. This is why inflation is high all over the…

Reserve requirements aren’t relevant anymore because capital requirements have largely taken their place. Capital requirements are not zero.

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

#152

Post by dheera »

soerxpso wrote: post #132
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…

> So effectively, Binance is refusing to honor its commitment to depositors to give them their money on demand. That's called a "default." What? So if I go into the bank at 4 AM and ask to withdraw $100,000, and they respond, "Sure, we'll need a few hours to get those funds together," the bank has defaulted?

Presumably they just need to wait until 9am when people at work, so I wouldn't consider that a default.

If they say they need a few hours at 9am, they've defaulted. It would be a big "ha" if they couldn't get them together by 9:05am because they've done shady things with your money.

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

#153

Post by xboxnolifes »

gamblor956 wrote: post #133
bellip wrote: post #94

Earlier quoted context omitted.

Yes, it's digital already. However banks manage the whole system and they can do whatever they want with your money if you are nobody. I have been waiting for 2 and a half months for an international payment via SWIFT, I worked long hours for that money and I needed it urgently. The money left the sender's account 2 and a half months ago. Neither of us has the money in our accounts while the bank tells us to just wai…

SWIFT does not take 2 months; it takes minutes or hours. Your bank already has your money or it never received it. More likely, they are holding your money due to some issues with your local KYC laws. (This is especially likely in South America, where foreign senders must verify the source and purpose of payments made to local residents.)

Either way, they haven't received the money.

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

#154

Post by jen20 »

notch656a wrote: post #64
capableweb wrote: post #58

Earlier quoted context omitted.

Not saying the rest of your comment is right or wrong but this part sticks out: > It's traded the world over by almost every country whether they want to or not. You can buy almost anything there is to buy with US dollars. That's definitely not true. Most places in the world, I'd wager, do not accept USD, as you seem to think. I can't even begin to count the times I've seen clueless American tourists in South America…

Lol almost no one in South America is laughing at USD. I've been to 3 of the 4 continents you mention and spent USD directly in all of them but Europe. Hello in many south america countries you get better prices even adjusted for true exchange rate because no one wants dog-shit and it saves them a trip to the money-trader before their money turns into kindling.

You can also spend them in several places in Europe with ease, albeit at an exchange rate that means you should not.

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

#155

Post by latchkey »

jjulius wrote: post #135
latchkey wrote: post #127

Earlier quoted context omitted.

Quoted post unavailable.

I... never said that you did? I know you don't, your first post suggests that you and I both want to see crypto go up in flames. That said, defending Binance isn't a prerequisite for spreading FUD. What I'm saying is that you are wrong about this withdrawal freeze being a "pre-announced downtime for a hardfork on their BSC chain" - it is an entirely separate freeze . Here's a really condensed version of what's happen…

> You: "Stop spreading FUD, this was just a planned downtime."

Certainly, except that isn't all that I said. After the above, you dropped:

  * You: Here is a bunch of links of people getting withdrawals no problem.

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

#156

Post by spicymaki »

kayamon wrote: post #118
hall0ween wrote: post #32

Earlier quoted context omitted.

I'm no crypto expert here, admittedly. Isn't the point of decentralization to avoid this level of control? It's like the crypto 'investor' response is "Decentralization...that's not so important. What we really want is sheer, unaltered speculation."

Bitcoin has continued clearing transactions throughout, just as it always has since its creation. Crypto != Bitcoin.

> Crypto != Bitcoin

Please explain your reasoning.

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

#157

Post by driverdan »

dheera wrote: post #152
soerxpso wrote: post #132

Earlier quoted context omitted.

> So effectively, Binance is refusing to honor its commitment to depositors to give them their money on demand. That's called a "default." What? So if I go into the bank at 4 AM and ask to withdraw $100,000, and they respond, "Sure, we'll need a few hours to get those funds together," the bank has defaulted?

Presumably they just need to wait until 9am when people at work, so I wouldn't consider that a default. If they say they need a few hours at 9am, they've defaulted. It would be a big "ha" if they couldn't get them together by 9:05am because they've done shady things with your money.

That's not how banks work. You can't go into a bank and withdraw $100k in cash. Most banks don't hold that much cash.

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

#158

Post by jki275 »

dheera wrote: post #152
soerxpso wrote: post #132

Earlier quoted context omitted.

> So effectively, Binance is refusing to honor its commitment to depositors to give them their money on demand. That's called a "default." What? So if I go into the bank at 4 AM and ask to withdraw $100,000, and they respond, "Sure, we'll need a few hours to get those funds together," the bank has defaulted?

Presumably they just need to wait until 9am when people at work, so I wouldn't consider that a default. If they say they need a few hours at 9am, they've defaulted. It would be a big "ha" if they couldn't get them together by 9:05am because they've done shady things with your money.

Do you believe that banks hold every dollar they receive in deposits in cash in their vaults?

Because that's not how banks work at all. They make loans, and if enough people demand their cash back they will have to move things around to honor those withdrawals. That's how every bank in known history has operated.

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

#160

Post by freejazz »

latchkey wrote: post #149
freejazz wrote: post #128

Earlier quoted context omitted.

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".

Thanks for the deeper explanation and higher quality comment. What other term would you use then?

Criticism.... calling it whatever it is. A "report", "analysis", an "accounting of finances"
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