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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

#251

Post by marvin »

jacquesm wrote: post #79
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…

Exactly, and one more: they may have been shuttling money around from account to account to look solvent but aren't.

Someone mentioned the early-banking era wheelbarrow of gold travelling around from bank to bank just in time to make the audit.

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

#252

Post by JumpCrisscross »

willmadden wrote: post #241
russell_h wrote: post #124

Earlier quoted context omitted.

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?

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

Did the Deutsche Mark fail when it was replaced by the Euro? Come on.

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

#253

Post by prakhar897 »

Both Binance and Coinbase have their "wallet" apps where u can get keys for your coins. They provide a slick interface to use them as well. However in this case, you are sharing your keys with the company which means:

1. they can pull your coins out anytime.

2. They can show your coins on their balance sheet which allows them to print more of their own coins (because they are backed by deposits).

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

#254

Post by xwdv »

echelon wrote: post #244
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?

Coinbase is going out of business the old fashioned way: losing a lot of money.

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

#255

Post by Lerc »

JumpCrisscross wrote: post #248
drexlspivey wrote: post #232

Earlier quoted context omitted.

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.)

No they didn't. The "5)" was indicating a further option. That is very much a suggestion and not a statement of fact.

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

#256

Post by not_enoch_wise »

CaptainZapp wrote: post #186
oh_my_goodness wrote: post #152

Earlier quoted context omitted.

Can you point to any indicator that it's anything else? EDIT: https://en.wikipedia.org/wiki/Fiat_money

Yes, I totally can. Bitcoin and other crypto is definitely not fiat currency, because virtually nobody will sell me a pack of cigarettes or a croissant for crypto currency.

Buuuut I bet there is an NFT of a croissant smoking a cigarette

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

#257

Post by patch_cable »

prakhar897 wrote: post #253

Both Binance and Coinbase have their "wallet" apps where u can get keys for your coins. They provide a slick interface to use them as well. However in this case, you are sharing your keys with the company which means: 1. they can pull your coins out anytime. 2. They can show your coins on their balance sheet which allows them to print more of their own coins (because they are backed by deposits).

At least coinbase claims they keys remain on your device:

https://help.coinbase.com/en/wallet/getting-started/what-s-t...

Do you have reason to believe this is not the case? Or are you more concerned about a malicious update to the app?

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

#258

Post by JumpCrisscross »

jefftk wrote: post #250
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...

> FTX passed a GAAP audit

Do we have a source mentioning the auditor?

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

#259

Post by totalZero »

JumpCrisscross wrote: post #248
drexlspivey wrote: post #232

Earlier quoted context omitted.

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.)

> Possibilities:

The comment said the fifth possibility is that they are solvent.

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