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

Post by freejazz » Tue, Dec 13, 2022, 7:48 PM UTC

latchkey wrote: post #214

JumpCrisscross wrote: post #198

Earlier quoted context omitted.

> What other term would you use then? An argument? Crypto is facing a crisis moment. An "exchange" which has never been audited and won't say where it is, legally or physically, has halted redemptions. That prompts legitimate questions as to their liquidity. Dismissing any criticism as FUD short circuits asking why we should believe their liquidity is adequate.

> has halted redemptions. Temporarily, which is something that happens, for better or worse, all of the time with CEX, for a myriad of reasons. It doesn't always mean that it is because of insolvency, which is what my FUD comment revolves around. > Dismissing any criticism as FUD That isn't what I was doing, at all.

Post by aeternum » Tue, Dec 13, 2022, 7:54 PM UTC

thatguy0900 wrote: post #178

rufusroflpunch wrote: post #113

Earlier quoted context omitted.

It’s not really any less of a dollar than any other dollar is. All of our digital dollars are just bank liabilities. Circle and Tether are just banks with dollar liabilities. Their liabilities can be transferred on crypto networks rather than traditional bank wires.

It is less of a dollar, because I can say you can exchange it for a dollar when you can not, in fact, exchange it for a dollar when you try to,because I never had enough(or any) dollars. In the real world when the bank runs out of dollars the government will give me dollars instead.

Post by nathias » Tue, Dec 13, 2022, 8:03 PM UTC

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…

Post by philippejara » Tue, Dec 13, 2022, 8:16 PM UTC

grey-area wrote: post #224

zeven7 wrote: post #180

Earlier quoted context omitted.

This is akin to asking why commodity futures exist. It's an abstraction that provides utility. In the case of commodity futures, it allows commodities to be traded on an exchange where bags of onion seeds would otherwise be difficult to trade. In the case of USDC it allows USD to exist on the blockchain so that it can interact with smart contracts. Believe it or not, if you want to invest in gold, the only option isn…

The question is, what utility? Thanks for the usual collection of talking points from 2017 that nobody uses in the real world. There is no utility to these blockchain tokens except to scam others.

Post by spicymaki » Tue, Dec 13, 2022, 8:23 PM UTC

aftbit wrote: post #186

spicymaki wrote: post #156

Earlier quoted context omitted.

> Crypto != Bitcoin Please explain your reasoning.

I'm not the parent poster, but I believe the explanation is: 1. "Crypto" as a space includes a lot of things like Centralized Exchanges, which are really just like unregulated banks. 2. "Bitcoin" the network is a subset of the crypto space and was not in any way impacted by whatever the latest scammy CEX decides to do.