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

Post by coffeebeqn » Sat, Dec 17, 2022, 8:45 PM UTC

tiarafawn wrote: post #298

dmitriid wrote: post #207

Earlier quoted context omitted.

> Binance did $40 billion in volume in the last 24 hours. It didn't > Even if their effective fee is only 1/100 of a percent that's $4 million. It's not. The reason? They "traded" fictitious currencies whose "value" is pure speculation and nonsense. Their fees are also denominated in these fictitious currencies. However, neither the offices they rent nor the people they employ have any interest in these, because rent…

> because rent and salaries are paid in something that actually has value: the dollar. In 2018, 90% of employees received their salaries in BNB https://www.ccn.com/90-of-employees-at-major-crypto-exchange...

Post by lottin » Sat, Dec 17, 2022, 8:50 PM UTC

skinnymuch wrote: post #171

xlbuttplug wrote: post #149

Earlier quoted context omitted.

That's a good point. The exchange's remaining liabilities outside user deposits are still an unknown. (Or at least can't be verified in a trustless manner.)

Doesn’t that make it borderline worthless?

Post by SturgeonsLaw » Sat, Dec 17, 2022, 8:52 PM UTC

Yiin wrote: post #291

supernewton wrote: post #278

Earlier quoted context omitted.

Money in general are traded for productive goods and services , not other kinds of money. That's why it's not negative sum. If you had a bunch of people trading between USD and GBP amd EUR and doing nothing else, that would be negative sum and look an awful like what people do with cryptocurrency.

I'm probably missing some critical part in my comparison, but crypto trading sounds awful lot like trading in stock markets.

Post by LargeTomato » Sat, Dec 17, 2022, 8:54 PM UTC

actionablefiber wrote: post #289

that_guy_iain wrote: post #279

Earlier quoted context omitted.

For me, it's the ruthlessness of dumping all the FTT tokens they had to crash FTX to buy it (which went pear shape once they saw FTX's books) makes me think that they're probably not in a strong of a position as they say they are. We see this all the time. Exchanges saying they're strong and assets are safe until suddenly a few hours later they're not.

There are some possibilities. Binance could have just done so knowing that FTX's demise would concentrate their own market share. They also could have (sensibly) not wanted toxic assets on their books - FTX's book value was/is deeply negative so holding tokens correlated to a basically insolvent entity and/or buying them is just a bad trade that hurts their financial position. It's ruthless but I don't think it says…

Post by moffkalast » Sat, Dec 17, 2022, 8:55 PM UTC

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...