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

ft.com

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

#401

Post by pomyks »

Is it the same FT that wrote about poor Sam Bankman-Fried that would not be able to continue his altruism because of some errors?

Keeping stuff at exchanges is a bad idea if you're not actively trading it and accept the risk. I got burned two times (cryptopia and ftx). I still think Binance is safe in terms of assets. People bring up that big part of the assets is in BUSD and BNB coins. But BUSD is issued by another company - Paxos and is fully collateralized. BNB could be somewhat a problem if it crashed, because it can be used as collateral in futures trading. That could cause liquidations and more selling, but it wouldn't make Binance less solvent in terms of assets/liabilities.

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

#402

Post by RealityVoid »

koalala wrote: post #344
moffkalast wrote: post #319

Earlier quoted context omitted.

Binance just unverified everyone yet again , it's safe to say they're trying to prevent people from pulling out.

i just checked this and i'm still verified. i'm in europe though.

I'm also still verified. But I also pulled out all my assets. I don't believe Binance to be on the brink of bankruptcy, but better safe than sorry.

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

#403

Post by digitaltrees »

lostmsu wrote: post #399
digitaltrees wrote: post #391

Earlier quoted context omitted.

True but I have been making them from the beginning. I actually think it would be good for people to see crypto as worthless. Maybe then they would spend it instead of holding it and it could actually act as a currency.

> Maybe then they would spend it Why? Do you want to buy?

Currency shouldnt be “bought” it should be used. Earned and spent.

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

#404

Post by einpoklum »

SturgeonsLaw wrote: post #315
Yiin wrote: post #291

Earlier quoted context omitted.

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

The difference is that stock, at its core, represents a claim on a portion of the future profits of a business. The business is out there building widgets, supplying people with a service, extracting raw materials, whatever. Most coins are just hollow marketing gimmicks designed to move money around. Basically all the DeFi ecosystem boils down to trading one coin for another coin, there is no productive work at the c…

> The difference is that stock, at its core, represents a claim on a portion of the future profits of a business.

Wow, that's so real, concrete and down-to-earth :-)

> The business is out there building widgets supplying people with a service

Or perhaps not doing these things, but making performative presentations on how its groundbreaking unproven innovation is certain to bring in a lot of money in the future. Or a mix of the former and the latter.

> Most coins are just hollow marketing gimmicks designed to move money around.

One could argue that some, or many, publicly-traded companies - when one considers the listed trade value of their stock - are 10% real business and 90% hollow marketing gimmicks serving as parking space for speculators' money.

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

#405

Post by phatfish »

purpleblue wrote: post #53
janakalin wrote: post #5

FTX was also audited by a top firm, Armanino!Changed nothing... In the article says: Following the collapse of FTX, Paul MacIntosh, EY’s US financial services crypto co-leader, said on LinkedIn that proof of reserves reports do not assess companies’ internal controls, “which ultimately was the downfall of FTX”.

Armanino is not a top firm. If you're not using Big 4, there's a reason.

I think it just depends how well a company's CFO knows the firm partners from the last round of golf as to whether they will go easy on your audit.

All the big 4 have been caught turning a blind eye over the last few years to win big contracts. Wirecard, Carillion and NMC Health all spring to mind for me in Europe. If i have 3 committed to memory there are many more.

All the "audit" firms are corrupt, regulation has utterly failed.

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

#406

Post by SturgeonsLaw »

jacquesm wrote: post #370
SturgeonsLaw wrote: post #321

Earlier quoted context omitted.

You're posting pro-Binance, pro-China comments all over this thread > company is in great shape, and customer's assets are safe Do you have any proof of this? I assume that to know this for sure, you would have some insight into Binance internals?

The sarcasm is so thick that even a non-native like me picks it up.

The only thing thicker is me, apparently :P

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

#407

Post by stanleydrew »

oblio wrote: post #345
digitaltrees wrote: post #340

Earlier quoted context omitted.

You can have an audit on Monday and a founder transfer all the assets to an affiliate on Tuesday so timing risk makes this stuff irrelevant. Maybe time to make crypto decentralized?

> Maybe time to make crypto decentralized? Is there money in that?

If there were money in that I think we'd have seen it by now.

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

#408

Post by scoofy »

m3kw9 wrote: post #397
jefftk wrote: post #250

Earlier quoted context omitted.

> 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...

How did gaap value their magic coins?

Likely marked to market, but it honestly doesn't matter. In a world where wash sales are effectively free from any friction whatsoever, you can set a market value of whatever you want.

I've been a crypto skeptic for all this time especially NFT's exactly because I was at the right age to understand how wash sales drove the dot-com bubble, and looking at the defi space, wash sales could explain how all of these insane valuations kept happening.

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

#409

Post by EFreethought »

species9606 wrote: post #357
digitaltrees wrote: post #347

Earlier quoted context omitted.

Maybe CZs attempt to take down a competitor by leaking information wasn’t a good idea after all. Sad to see people hurt as it backfires in his face. No amount of public relations or spin will save binance at this point. The run has begun. It will seem slow at first and then all at once. The only thing that would save it would be a bail out by the Chinese government.

As CZ has said repeatedly, they’re not a Chinese company. If the CCP bails them out, they’ll have an entirely new set of reputation problems.

Frankly, taking a crypto exec at their word has not been a smart move lately.

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

#410

Post by lavventura »

that_guy_iain wrote: post #279
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…

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.

They have constant income. Their mostly daily gains are coming from liquidating people in futures not matter market crashes or not.
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