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Binance temporarily suspends USDC withdrawals

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Re: Binance temporarily suspends USDC withdrawals

#121

Post by cypress66 »

mikelovenotwar wrote: post #82
cypress66 wrote: post #66

Earlier quoted context omitted.

Your entire comment hinges on the idea that Binance is a scam, which nobody knows for a fact. And I would hope binance is not a scam, so people don't lose their money.

>Your entire comment hinges on the idea that Binance is a scam, which nobody knows for a fact. I make no mention of Binance as a scam. The entire industry is a ponzi scheme, Binanace are a large player in the game.

Binance is an exchange where you can exchange dollars for cryptocurrencies.

It is well understood that the cryptocurrencies you purchase can crash to almost nothing. Nobody's complaining about that.

The issue here is the possibility of Binance stealing user's assets, like FTX did. Which is obviously illegal.

To explain it in "crypto hater" terms, it's like someone stealing people's beanie babies.

Re: Binance temporarily suspends USDC withdrawals

#122

Post by jacquesm »

ivanmontillam wrote: post #55
jacquesm wrote: post #43

Earlier quoted context omitted.

The government isn't 'meddling' with Binance, Binance is under the spotlight because it appears that keeping reserves is a bit of a weak point with all of these new finance companies. If anything you should be grateful that there (finally) is some oversight, but I fear it is too little and too late.

I have to disagree. That oversight in theory is good. In practice it turns out to be: "The OFAC and FATF hate your people as a whole. We cannot service you anymore. Kthxbai." I will trust regulators when regulators do not exclude people where systems would be most useful. It all boils down to: if you're not credit worthy, you must be a terrorist, capomafia or at best, a tax evader. See what happened to Uphold[0], whi…

'your people' has nothing to do with oversight of Binance. But I agree that oversight could be more precise in its goals and execution, however, and this is a big issue, it requires a well functioning, non-corrupt government in all countries participating backed by a non-corrupt police force and local financial authorities.

This is a problem in a large part of the world, and even in countries where these factors are present the size of the workforce available for regulatory oversight is usually only a small fraction of the size of the workforce available for the industry itself. That's why something like WireCard could happen in Germany. And even if the demise of WireCard also hit a lot of non-players that still doesn't mean that it isn't a good thing that they are gone.

Re: Binance temporarily suspends USDC withdrawals

#123

Post by unnouinceput »

unsigner wrote: post #58
jacquesm wrote: post #43

Earlier quoted context omitted.

The government isn't 'meddling' with Binance, Binance is under the spotlight because it appears that keeping reserves is a bit of a weak point with all of these new finance companies. If anything you should be grateful that there (finally) is some oversight, but I fear it is too little and too late.

My Argentinian friends tend to view everything that happens in Argentina as part of either some nefarious plot by the US government, or the glorious struggle of the brave Argentinian people against the US government. They would certainly view anything that happens with Binance, or even FTX/SBF as the US government trying to screw them over.

Well, housing Nazis tends to put you on, at the very least, a "tread with caution" international list, not to mention on the very infamous Mossad's "blacklist". Argentina and Switzerland are their black sheep for housing Nazis and stealing the Jewish gold.

Re: Binance temporarily suspends USDC withdrawals

#124

Post by largepeepee »

crypt1d wrote: post #108

I honestly expected more from the HN crowd. The comments here are disturbingly inaccurate and fear mongering. For those of you that don't want to sift through the BS and just get the gist (from someone deep in this space): - Binance suspended USDC withdrawals. You can still withdraw in other stablecoins, fiat, or crypto. You can withdraw BUSD and swap to USDC on another exchange (dex). So really, this is not a big de…

There seems to be a stable coin war going on with USDC leading the charge.

Has been happening for a few weeks now starting from a tweet from Brian.

Going be interesting to see if they actually manage to depeg tether.

Re: Binance temporarily suspends USDC withdrawals

#126

Post by crypt1d »

janmo wrote: post #109
crypt1d wrote: post #108

I honestly expected more from the HN crowd. The comments here are disturbingly inaccurate and fear mongering. For those of you that don't want to sift through the BS and just get the gist (from someone deep in this space): - Binance suspended USDC withdrawals. You can still withdraw in other stablecoins, fiat, or crypto. You can withdraw BUSD and swap to USDC on another exchange (dex). So really, this is not a big de…

FTX a few days before going belly up: "Stablecoins: processing. Banks are closed for the weekend, though; USD stablecoin creations/redemptions might be slower until wires clear tomorrow, especially for some coins/chains." https://twitter.com/FTX_Official/status/1589510763328450561 I also I would like to add that: - USDC on Binance is not 1:1 backed by USDC, but by another stable coin such as BUSD or perhaps even USDT…

> - USDC on Binance is not 1:1 backed by USDC, but by another stable coin such as BUSD or perhaps even USDT. Both of them are much harder to convert into real dollars!

This is not true in any way. First, you do not hold USDC on Binance, you hold BUSD. Your USDC deposits are automatically converted to BUSD. Neither USDT nor BUSD is "hard" to convert to real dollars. Swap them to USDC on Uniswap and do whatever you please with them.

> - Binance is obviously not prepared for a bank run, this is happening on a Monday/Tuesday, not even a weekend, and the withdrawals issued started yesterday while the banks where open! As of this post, USDC withdrawals have been suspended for at least 14 hours!

As I said, you can withdraw in other stablecoins. If you go to a bank, and you cannot withdraw USD at that moment, but you can withdraw EUR - does that mean the bank is insolvent?

Re: Binance temporarily suspends USDC withdrawals

#127

Post by [deleted] »

janmo wrote: post #37
sho wrote: post #30

The quotes around "temporarily" are editorialising, IMO. They should be removed. No fan of Binance but it's a reasonable explanation and submitter has given no reason to think it is not, indeed, a temporary situation, as has happened many times in the past without particular note.

It is not reasonable at all. It means that: 1. They are not prepared at all for a "bank run" 2. USDC on the exchange are not backed by real USDC. Therefor they need to market buy them. 3. CZ is telling people to withdraw using BUSD and USDT, both more or less Binance controlled stables that are much harder to convert into real USD. It would be extremely wise to exit Binance and Binance related coins such as BNB, BUSD…

[deleted]

Re: Binance temporarily suspends USDC withdrawals

#128

Post by roenxi »

SilverBirch wrote: post #40
plsbenice34 wrote: post #33

Earlier quoted context omitted.

Nobody with basic knowledge in this area would think of USDC as "highly decentralized censorship proof freedom coin". It is centralised and pegged to USD so obviously it must be intentionally interlinked with the banking system.

This is the fiction of Crypto though - we're all here in this space because we want decentralized censorship-proof, public recorded transactions, and we then proceed to immediately abandon all of those principles to trade dollar denominated assets on a central exchange that operates out of a shady jurisdiction. Yes, we all know what the point of crypto was. Yes we all know what is actually happening, the only questio…

I'm making a guess here, but suspect that you are not one of the "we" who are "still doing it". The glorious thing about decentralized censorship-proof systems is they die when the 2nd to last person stops using them, and not when people declare them dead.

Frankly, the government isn't a very respectable institution and it is quite a remarkable era that now, after millennia of thugs taking people's stuff, there is suddenly an asset class that can't just be seized. That comes with a long laundry list of problems. It also comes with uncertain consequences.

> ...public recorded transactions...

Don't have to do this if you don't want to. So-called privacycoins exist.

Re: Binance temporarily suspends USDC withdrawals

#129

Post by yladiz »

crypt1d wrote: post #126
janmo wrote: post #109

Earlier quoted context omitted.

FTX a few days before going belly up: "Stablecoins: processing. Banks are closed for the weekend, though; USD stablecoin creations/redemptions might be slower until wires clear tomorrow, especially for some coins/chains." https://twitter.com/FTX_Official/status/1589510763328450561 I also I would like to add that: - USDC on Binance is not 1:1 backed by USDC, but by another stable coin such as BUSD or perhaps even USDT…

> - USDC on Binance is not 1:1 backed by USDC, but by another stable coin such as BUSD or perhaps even USDT. Both of them are much harder to convert into real dollars! This is not true in any way. First, you do not hold USDC on Binance, you hold BUSD. Your USDC deposits are automatically converted to BUSD. Neither USDT nor BUSD is "hard" to convert to real dollars. Swap them to USDC on Uniswap and do whatever you ple…

> If you go to a bank, and you cannot withdraw USD at that moment, but you can withdraw EUR - does that mean the bank is insolvent?

What kind of bank would this happen at? A bank in the EU where you're trying to withdraw USD?

Re: Binance temporarily suspends USDC withdrawals

#130

Post by mikelovenotwar »

cypress66 wrote: post #121
mikelovenotwar wrote: post #82

Earlier quoted context omitted.

>Your entire comment hinges on the idea that Binance is a scam, which nobody knows for a fact. I make no mention of Binance as a scam. The entire industry is a ponzi scheme, Binanace are a large player in the game.

Binance is an exchange where you can exchange dollars for cryptocurrencies. It is well understood that the cryptocurrencies you purchase can crash to almost nothing. Nobody's complaining about that. The issue here is the possibility of Binance stealing user's assets, like FTX did. Which is obviously illegal. To explain it in "crypto hater" terms, it's like someone stealing people's beanie babies.

>Binance is an exchange where you can exchange dollars for cryptocurrencies.

I am aware of this, and hope they fail along with the rest of the ponzi scheme.

> The issue here is the possibility of Binance stealing user's assets, like FTX did. Which is obviously illegal.

This is one of the issues, and while important it's not the only issue.

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