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Binance outflows hit $6B as Mazars halts ‘proof of reserves’ work

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Re: Binance outflows hit $6B as Mazars halts ‘proof of reserves’ work

#241

Post by willmadden »

russell_h wrote: post #124
willmadden wrote: post #112

Earlier quoted context omitted.

Bitcoin has already reached 50% of the 27 year lifespan of the average fiat currency. https://cointelegraph.com/news/bitcoin-is-already-at-40-of-a...

Debunked: http://jpkoning.blogspot.com/2019/09/the-life-and-death-of-i...

That article doesn’t “debunk” anything. Did you read it?

Their argument is that a currency being “replaced” for “political, economic, and cultural reasons” isn’t a currency failing. What?

If they’ve “debunked” the 27 year figure, then what is the correct average lifespan of fiat currencies?

Re: Binance outflows hit $6B as Mazars halts ‘proof of reserves’ work

#243

Post by wmf »

w3ll_w3ll_w3ll wrote: post #173
jeffreyrogers wrote: post #165

Earlier quoted context omitted.

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.

If they are in just for speculating/trading, they could trade ETFs denominated in BTC or ETH on regulated banks.

Why not go all the way and have cash-settled futures that track random numbers?

Re: Binance outflows hit $6B as Mazars halts ‘proof of reserves’ work

#244

Post by echelon »

Animats wrote: post #72

"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…

Is Coinbase audited?

Re: Binance outflows hit $6B as Mazars halts ‘proof of reserves’ work

#245

Post by europeanguy »

funstuff007 wrote: post #239
europeanguy wrote: post #236

Earlier quoted context omitted.

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

Why exactly, though? That's what I'm asking.

I promise I'm not trolling, I just don't understand the connection.

Re: Binance outflows hit $6B as Mazars halts ‘proof of reserves’ work

#246

Post by StanislavPetrov »

Animats wrote: post #72

"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…

I don't ever entrust any exchange with my crypto. That being said, this episode will be a far better test of Binance's solvency than any audit. The proof is in the pudding. Either they have the reserves to cover the withdrawals or they go belly up.

Re: Binance outflows hit $6B as Mazars halts ‘proof of reserves’ work

#247

Post by firstSpeaker »

Any firm that survive the current ?recession? will have significantly more chance of surviving and passing the shivers. Maybe the next 6 months or so is critical for Binance or any other central wallet/exchange since people are on the edge.

Re: Binance outflows hit $6B as Mazars halts ‘proof of reserves’ work

#248

Post by JumpCrisscross »

drexlspivey wrote: post #232
charcircuit wrote: post #193

Earlier quoted context omitted.

5) Like tether they are solvent despite all the people screaming for an audit

Getting downvoted for suggesting a company might be solvent.

> downvoted for suggesting a company might be solvent

The comment said they are solvent. Not that they might be. Given the present facts and circumstances, that’s unfounded. (EDIT: Never mind.)

Re: Binance outflows hit $6B as Mazars halts ‘proof of reserves’ work

#249

Post by trompetenaccoun »

jeffreyrogers wrote: post #165
godzillabrennus wrote: post #86

Even 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.

I don't know any pro traders who use Binance but there might be some. Binance is popular with crypto kiddies, small time traders and they're also very strong in less developed countries that aren't served by any other major exchanges. People buying cryptocurrencies to escape high inflation or political risk. Basically a lot of newbies who aren't too aware that Binance is shady despite its size. But it's a diverse user base, they're not all active traders.

Re: Binance outflows hit $6B as Mazars halts ‘proof of reserves’ work

#250

Post by jefftk »

Animats wrote: post #72

"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…

> Full GAAP audit or we all assume you're broke.

FTX passed a GAAP audit and was still broke. Safer just to take custody of your coins while your still can.

2021-08-27: "Both FTX and FTX.US have completed requirements to pass the US Generally Accepted Accounting Principles (GAAP) audit" https://blockworks.co/news/ftx-joins-coinbase-kraken-with-us...

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