Earlier quoted context omitted.
Binance doesn't mint BUSD, BUSD is emitted by Paxos, which is an american licensed company.
Gary Gensler called BUSD a security and banned it years go. What a guy!
[flagged]
Bybit loses $1.5B in hack
271–280 of 381 posts
Re: Bybit loses $1.5B in hack
#272It's obviously not a cold wallet if it's connected to the exchange.
It could still be cold. "took control of the specific ETH cold wallet" sounds like stealing the physical hardware. Like someone stealing the vault key, or the HDCP master key getting leaked.
Yes. This sounds like a variant of “rubber hose decryption.” “We beat him with a sock full of doorknobs until he gave us the device.”
Re: Bybit loses $1.5B in hack
#273Earlier quoted context omitted.
> Crypto hosts the most profitable businesses in the world. Well, because the retail clients expect to get rich and don't mind paying 1% or so fees per exchange. Similarly, the BTC future basis (the difference between the spot price and future price) on many exchanges around 10 to 5 years ago was easily 80% p.a. which you could realize by buying Bitcoin and selling the future. What happened there is that people going…
You pay 1% on Coinbase because they are a quasi monopoly due to regulation. Offshore exchanges take less than 0.1% usually. The neutral rate for perps is 10%, which is lower than the credit card borrowing rate in the USA. And nothing prevents retail investors to earn it by shorting while holding spot. Last, Tether is crypto's most profitable business, and likely the world's most profitable if you account on $ of prof…
Tether is an absolutely remarkable business, indeed. Basically an unregulated bank that pays no interest and follows no KYC/AML/ABC/CTF rules (because they just deal with wholesale, and then the Tethers are transacted on some permissionless "who, me?" blockchain).
Remarkable dereliction of responsibility. I don't understand why we let them get away with it.
Re: Bybit loses $1.5B in hack
#274Earlier quoted context omitted.
Binance doesn't mint BUSD, BUSD is emitted by Paxos, which is an american licensed company.
I have a license to drive a car. Having it doesn't limit my ability to mint crypto.
https://www.dfs.ny.gov/consumers/alerts/Paxos_and_Binance
It was approved by the New York State Department of Financial Services (NYDFS).
Re: Bybit loses $1.5B in hack
#275Earlier quoted context omitted.
Coinbase charges 100bps (1%) between trader & maker fee. Just last quarter , Coinbase had: Revenue: $2.2B Net Income: $1.3B https://help.coinbase.com/en/exchange/trading-and-funding/ex... https://s27.q4cdn.com/397450999/files/doc_financials/2024/q4...
Note that Coinbase (like most exchanges) charges retail clients outrageously high fees (orders of magnitude more than you would pay at a competitive FX or equity broker), but institutional and whales that trade a lot very small fees. Yet another way crypto moves money from poor suckers to insiders.
You just described volume-based discounts.
What’s so wrong with that?
It’s the same reason why buying a single soda at a convenience store cost more (per unit) than buying a large pack at Costco.
Re: Bybit loses $1.5B in hack
#276Earlier quoted context omitted.
It's a cold wallet which means it should never be connected to the internet, so not entirely online, but yes - these are the wild wild west times of the internet. Imagine how easy it was to go into a bank shoot some people and get out with money, and doing it like, daily? monthly? Today it's not possible.
Apparently there was a path from the internet to the wallet anyway, that's what it sounds like.
So it was a lukewarm wallet?
Re: Bybit loses $1.5B in hack
#277Earlier quoted context omitted.
How it it different from what banks do? (Except for a central regulator.) Your exception is the answer. Only the central regulator can "mint" money and doing so has real world consequences. The central regulator has financial incentives to limit this sort of activity. The bizarro world of crypto has no such regulation and as a result, it is inherently unstable. The proof of this is right in front of you --- it is the…
False. Money on your bank account is backed by bank's assets, not by the central regulator. Recommended reading: https://en.wikipedia.org/wiki/Fractional-reserve_banking , M1 money supply, etc. > The only way to bring stability to the bizarro world of crypto is by tying it to "fiat" False. It's possible to make stable-coins using just price oracle and collateral. "Fiat" is not necessary. E.g. https://www.liquity.org/…
It's possible to make stable-coins using just price oracle and collateral.
Most attempts at "algorithmic" stable coins have failed. See TerraDollar, Luna and Titan.
Re: Bybit loses $1.5B in hack
#278Earlier quoted context omitted.
How it it different from what banks do? (Except for a central regulator.)
Banks don't print money for each other, and if they get money for free it's backstopped by the government and hence all of us. Crypto wants this single aspect but none of the central regulation. Both systems stink for those at the end of the chain, i.e. us; you can decide which one is worse.
Banks borrow from each other all the time. What do you think "overnight loans" is for? And when banks gives a loan that creates money
Re: Bybit loses $1.5B in hack
#279Re: Bybit loses $1.5B in hack
#280Earlier quoted context omitted.
> How it it different from what banks do? I often read this sort of comment from crypto-defenders, but is it what banks do? I’m relatively naive about these things, but my impression is that a bank losing this proportion of their assets can’t just ‘pretend’ they have the money, or create ‘new’ money.
That's because they're mistaken. In traditional banking only the central authority can print money, not the individual banks. If someone stole a trillion dollars from JP Morgan, JP Morgan can't make themselves whole by creating a new trillion dollars. The central authority might guarantee the customers of JP Morgan that their money is protected, but they won't print money to make the bank whole.
False. Banks create money. https://en.wikipedia.org/wiki/Money_creation