Binance has seen much worse. Binance is shady, but a lot of people in this thread are falling for bear market panic seekers.
This is a MLM scheme that is dissolving in front of it's members.
Binance outflows hit $6B as Mazars halts ‘proof of reserves’ work
231–240 of 506 posts
Re: Binance outflows hit $6B as Mazars halts ‘proof of reserves’ work
#232"Binance has said it holds more than $60bn in assets, enough to honour withdrawals. The company’s disclosures do not include its liabilities, which makes it difficult to ascertain its financial health." Possibilities: 1) They're insolvent. Liabilities exceed assets. (Like FTX.) 2) Their accounting is so screwed up they can't produce a balance sheet. (Like FTX). 3) They have a large number of interconnected corporate…
5) Like tether they are solvent despite all the people screaming for an audit
Getting downvoted for suggesting a company might be solvent.
Re: Binance outflows hit $6B as Mazars halts ‘proof of reserves’ work
#233"Binance has said it holds more than $60bn in assets, enough to honour withdrawals. The company’s disclosures do not include its liabilities, which makes it difficult to ascertain its financial health." Possibilities: 1) They're insolvent. Liabilities exceed assets. (Like FTX.) 2) Their accounting is so screwed up they can't produce a balance sheet. (Like FTX). 3) They have a large number of interconnected corporate…
No post body was provided.
Re: Binance outflows hit $6B as Mazars halts ‘proof of reserves’ work
#234Earlier quoted context omitted.
Well for starters they have over a thousand employees, plus office leases, plus I'm sure cloud provider fees, marketing, and more. There are expenses for sure.
It's definitely strange. Binance did $40 billion in volume in the last 24 hours. Even if their effective fee is only 1/100 of a percent that's $4 million. If we assume they do half that volume every day on average that's 730 million in revenue per year. Surely costs can't be that high?
https://s27.q4cdn.com/397450999/files/doc_financials/2022/q3...
They had $365mm in revenue from transactions. They has $1.1b in expenses. $550mm is employee/r&d.
Re: Binance outflows hit $6B as Mazars halts ‘proof of reserves’ work
#235"Binance has said it holds more than $60bn in assets, enough to honour withdrawals. The company’s disclosures do not include its liabilities, which makes it difficult to ascertain its financial health." Possibilities: 1) They're insolvent. Liabilities exceed assets. (Like FTX.) 2) Their accounting is so screwed up they can't produce a balance sheet. (Like FTX). 3) They have a large number of interconnected corporate…
Quoted post unavailable.
Could you expound?
Re: Binance outflows hit $6B as Mazars halts ‘proof of reserves’ work
#236If they're in such dire straights, how is it $BNB is hanging there? Is Binance defending their own magic bean? What is the cost of doing so? https://finance.yahoo.com/quote/BNB-USD/
I'm not suggesting you're wrong, but would you care to clarify how exactly binance being "in dire straits" (in the sense of not being able to honor withdrawals, I presume you mean) would affect the value of BNB?
Re: Binance outflows hit $6B as Mazars halts ‘proof of reserves’ work
#237Earlier quoted context omitted.
What does it even mean to audit a company that doesn’t follow or reconcile to GAAP (or equivalent)? Are there examples in any other industries?
It means you told the auditor how you want to be audited, and they did it. Generally speaking, if you look hard enough, you could find an auditor that will happily audit your number of nosehairs, or talking parrots, or not ask too many questions about whether or not your shitcoins reserves are actually worth XY billion. You may need to scrape the bottom of the barrel for that, though.
Mazars is supposed to be quite reputable. How they would agree to this, and endanger their entire firm, is beyond me. But then again, plenty of VCs also agreed to lend their reputation (and capital) to crypto firms with opaque finances and governance… I hope this turns into a lasting scarlet letter.
Re: Binance outflows hit $6B as Mazars halts ‘proof of reserves’ work
#238Earlier quoted context omitted.
It's definitely strange. Binance did $40 billion in volume in the last 24 hours. Even if their effective fee is only 1/100 of a percent that's $4 million. If we assume they do half that volume every day on average that's 730 million in revenue per year. Surely costs can't be that high?
I have calculated salary costs alone to be 30m a month at least. Could also be up to 80m, though, I have used the most conservative calculation I could reasonably come up with. Then comes office infrastructure, if any and cloud assets.
They publicly disclose this info ;)
They have >4k employees. Assuming they make US minimum wage, they would cost almost 240,000,000/yr. It’s almost certainly MUCH higher.
They spend $550b a quarter on R/D. That’s likely mostly salary.
https://s27.q4cdn.com/397450999/files/doc_financials/2022/q3...
Re: Binance outflows hit $6B as Mazars halts ‘proof of reserves’ work
#239If they're in such dire straights, how is it $BNB is hanging there? Is Binance defending their own magic bean? What is the cost of doing so? https://finance.yahoo.com/quote/BNB-USD/
I'm not suggesting you're wrong, but would you care to clarify how exactly binance being "in dire straits" (in the sense of not being able to honor withdrawals, I presume you mean) would affect the value of BNB?
Yes, my poetic license path is very heavy withdrawals -> bank run -> dire straits (money for nothing pun).
$60B in assets, $8B in withdrawals. Even if all the assets are correctly valued, I don't anyone would envy their position. But given their own coin in holding in there, maybe they are devoting some money to defend it, or maybe they are actually in decent shape and can handle this quasi bank run.
More succinctly, if they were really toast, then $BNB would be cratering. Given it's holding in there, it seems they are OK (at this very instant in time).
Re: Binance outflows hit $6B as Mazars halts ‘proof of reserves’ work
#240Even an audited exchange like Coinbase that is trying to do everything right is still self reporting loses like $430M in quarter 1 of 2022 just by operating their business correctly. Not your keys, not your crypto. Anyone storing their crypto on any exchange has this risk.
For many users of these exchanges their entire interest in crypto is speculation/trading, which requires them to store their crypto with an exchange so they can trade it because the costs associated with transferring to and from the exchange repeatedly would be prohibitive.
You are so close
All current crypto"currencies" which use transaction fees (which is practically all of them) are negative sum games and thus are scams.
This is so simple and people waste billions on not understanding it.