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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

#411

Post by hahaxdxd123 »

pomyks wrote: post #401

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…

Stop misrepresenting publications.

You can read what they've written about FTX here: https://www.ft.com/stream/555b8eaf-51c0-4d66-bbf3-dfe5dd0bca...

Here's a fun one from April 2022 (before even Terraluna): "FTX/ Defi: If it looks like a duck and quacks like a duck . . ." https://www.ft.com/content/eac0e56c-f30b-4591-b603-f971e60dc...

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

#412

Post by echelon »

noisenotsignal wrote: post #386
echelon wrote: post #336

Earlier quoted context omitted.

Even though I'm crypto agnostic, I'm diversified. I have some funds in Coinbase, but I don't really want to go to the trouble of maintaining a hardware wallet. I'm way more likely to lose a wallet or mismanage it than not. As an anecdote, I had several million dogecoin from 2014 or so as a joke, which I think amounted to several hundred thousand dollars just a few years back. I couldn't find, figure out, or be bother…

Holy cow, you had hundreds of thousands of dollars of assets and couldn’t be bothered to figure out how to cash out before they lost value? You are on a different planet of financial management than most of us.

There was so much going on during the pandemic. My early employee stock and the rest of my portfolio was booming, and I'd just made my yearly TC on GME. The dogecoin gains were smaller and kind of an afterthought.

To top it off, the hard drive with the dogecoin was back at my mom's place or in storage, and it would have taken a lot of time to go back and find it.

Since it was easy to leave the computer where it was, I lazily made the incorrect decision to go long on DOGE as a gamble and as a further means of diversification. I incorrectly thought maybe it would sink then come back even higher. I didn't have to do anything to make that choice. It was very much a wrong move and missed opportunity, but everything was making me money back then, and I was making all sorts of other bets, so this one didn't seem too unreasonable.

I should have known it was a larger macro bubble, but this was my first rodeo. I didn't experience 2008 or 2000 with my own assets, and the COVID dip was my only taste of losses. My biggest regret in all of this was not selling all of my employee stock options last summer when it was near peak. I got stuck between two trading windows and thought that the losses would end of reverse.

I'm still in a good spot, but I could have "FAT FIRE"-d, fully retired (into working on my own thing), and bought half a dozen homes - a beach house, mountain getaway, Manhattan townhome... I thought about that a lot.

I did manage to purchase a historic penthouse in Atlanta with city views though, so I'm happy with that. And I've quit working to focus 100% on my own startup.

If anything, these experiences are good lessons and just give me more drive.

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

#413

Post by [deleted] »

dash2 wrote: post #37
seydor wrote: post #30

Earlier quoted context omitted.

The title puts "halts proof of reserves work" next to "outflows hit $6B", which on quick reading implies that they halted the actual "audit" presumably because something went wrong , hence why i think it's misleading And while the article makes it clear that they withheld their report for PR reasons, I'm sure most people here will assume that the "audit" went wrong

It's a journalist's job to be suspicious. Yeah, maybe it's a total coincidence that these things happened together. Maybe the rat just happened to be leaving this listing and waterlogged ship! To visit its relatives! But that's not how a journalist thinks.

[deleted]

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

#414

Post by wruza »

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…

This is a textbook distinction, but when I look at my nasdaq and crypto candles, they all have the same 3-year profile, crypto just feels like it’s 1.5x leverage but that’s it. If stock market is all about production and long-term investment, then it shouldn’t bounce up and down with fear waves. The sibling commenter is right, just from the charts it seems at least 66% of “investors” are short-term players and no forward-looking company will (to my limited understanding) build a long-term strategy around these volumes. I mean, they will, but that only confirms the idea?

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

#415

Post by femto113 »

bragr wrote: post #400
blueprint wrote: post #369

Earlier quoted context omitted.

> If crypto holders stop trusting exchanges and pull all their assets that will cause the exchanges to fail and those assets will then be worth nothing. maybe you havent heard but it's possible to send "crypto" (lol) directly from person to person

Send me 10,000 bitcoins and I'll send you a pizza.

Sure, but only if you'll send me the pizza without waiting for the transaction to be confirmed, I'm too hungry to wait.

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

#416

Post by che_shirecat »

jacquesm wrote: post #377
tomjpandolfi wrote: post #184

Binance has seen much worse. Binance is shady, but a lot of people in this thread are falling for bear market panic seekers.

Let's see how this comments looks in a while.

yes, saving your comment for later

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

#417

Post by femto113 »

jacquesm wrote: post #363
femto113 wrote: post #304

Earlier quoted context omitted.

> If you have assets in an un-audited exchange, get them out now. This is Mexican standoff. The only "value" crypto assets have comes from exchanges that will trade them for fiat. If crypto holders stop trusting exchanges and pull all their assets that will cause the exchanges to fail and those assets will then be worth nothing. On the other side if exchanges try to earn the trust of holders by becoming "fully transp…

True, but the first out that manage to sell them for fiat through some other way even at a substantial discount are going to be off substantially better than the last.

I assume that by "get them out" the parent meant "move your crypto from an exchange to a wallet you control". If your end goal is to be out of crypto altogether it would make far more sense to just sell while the exchanges are still open.

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

#418

Post by nafey »

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.

Stocks give you share of ownership over the cashflow that a company generates from its business. Theoretically, that is where the value of stock comes from. Crypto does not generate any cashflows (due to selling no goods or services). So crypto is not like stocks. If anything, it is more like commodities than stocks.

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

#419

Post by professorTuring »

We will end up using good old banks to hold those assets… at least the regulations make them solvent.

We need to read history and see what happened when the banks weren’t regulated enough and we are letting the crypto zoo run free and bankrupt many people.

Such a bliss the “we don’t need traditional ecosystem to thrive”.

I know how this is going to end, we will replicate the finance ecosystem into the cryptosystem.

I still remember the “don’t be evil” slogan in google, let’s give random people the power to store all our crypto investment and let’s see what happens…

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

#420

Post by nl »

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.

You can speculate fine on decentralized exchanges.
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