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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

#421

Post by that_guy_iain »

CPLX wrote: post #351
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.

Is there some other action you can recommend for someone holding FTT tokens other than selling them immediately for the best price you can get?

If you hold tons of something that if you sell them all at the same time the price will drop the standard thing to do is to sell them over a period of time so you get the best price you can. The way Binance did it, they knew they wouldn't get the best price.

A good example of this is Tesla stocks and how Musk is selling them. He's not just dumping out all he wants to at this super high price he is slowly doing it. And it's still affecting share prices.

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

#422

Post by nl »

wruza wrote: post #414
SturgeonsLaw wrote: post #315

Earlier quoted context omitted.

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 for…

Of course stocks should jump around a lot too.

The stock price represents likelihood of future earnings. That's going to be influenced by a bunch of things not in financial reporting.

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

#423

Post by roenxi »

jcranmer wrote: post #341
willmadden wrote: post #241

Earlier quoted context omitted.

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?

> If they’ve “debunked” the 27 year figure, then what is the correct average lifespan of fiat currencies? The question is kind of ill-formed in the first place. Take the current US dollar. How long has it been around? Per Wikipedia, it was established by Congress in 1792, which gives it a sedate 230 years of existence. But given that the original analysis is by a gold bug, I suspect the intent is to limit it only to…

I do broadly agree, the "27 years" figure is a rhetorical number that doesn't mean anything in itself. That said...

> If the goal of the question is to work out how long a fiat currency not backed by gold will last before it's hyperinflated into nothingness

That isn't completely fair. The ducat lasted ~730 years and preserved a reasonably consistent amount of value all through that time. Someone holding a dollar in 1971 has effectively lost 95% the value that they expected it to have vs gold. Even as demand for gold has presumably plummeted now that it is no longer officially involved int he monetary system.

Just because they are destroying the value of the currency on purpose doesn't change the fact that the value will be destroyed. It doesn't need to be an unexpected event like a hyperinflation - normal inflation is also enough.

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

#424

Post by bragr »

JumpCrisscross wrote: post #293
fshbbdssbbgdd wrote: post #268

Earlier quoted context omitted.

Money in general has transaction costs - even cash decays every time it changes hands. Is it all a negative sum game? It seems that in order to make that claim, you need to make some comparison between the value produced and the costs incurred. IMO, crypto is pretty scammy but there is some value (note that crypto is most popular in countries with unstable economies and corrupt governments). A crypto that’s optimized…

> cash decays every time it changes hands. Is it all a negative sum game Currency trading is negative sum. (Zero sum less friction.) So are most derivatives. One must encapsulate broader effects to find a net gain. Incorporating crypto’s benefit to the poor is such an attempt.

>Incorporating crypto’s benefit to the poor is such an attempt.

What benefit is that? Not speculative, maybe in the future benefit, but current, concrete, demonstrable benefit.

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

#425

Post by landemva »

ninethirty wrote: post #372
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…

You could split between Gemini and Coinbase if you are dead-set against a hw wallet.

Or simply use a software wallet. Write down the seed phrases, then delete the software wallet. Recover it from seed phrases at your leisure.

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

#426

Post by imtringued »

che_shirecat wrote: post #416
jacquesm wrote: post #377

Earlier quoted context omitted.

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

yes, saving your comment for later

Literally nobody cares about saved comments. Not even the person saving the comment.

You will have to turn this into a bet with cash on the line if you actually mean it and I think bets are stupid so how about you just stop writing comments like that?

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

#427

Post by JumpCrisscross »

bragr wrote: post #424
JumpCrisscross wrote: post #293

Earlier quoted context omitted.

> cash decays every time it changes hands. Is it all a negative sum game Currency trading is negative sum. (Zero sum less friction.) So are most derivatives. One must encapsulate broader effects to find a net gain. Incorporating crypto’s benefit to the poor is such an attempt.

>Incorporating crypto’s benefit to the poor is such an attempt. What benefit is that? Not speculative, maybe in the future benefit, but current, concrete, demonstrable benefit.

> What benefit is that?

I don’t see one, but that’s a separate discussion. The narrow one is that every crypto-trader’s gain comes at another’s loss. Cash in and out of the system is entirely conserved across all timelines.

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

#428

Post by landemva »

chx wrote: post #240
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.

You are so close All current crypto"currencies" which use transaction fees (which is practically all of them) are negative sum games and thus are scams. This is so simple and people waste billions on not understanding it.

Email does not have transaction fees, so there is enormous spam. Paying for a service means the service has value.

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

#429

Post by imtringued »

hn_throwaway_99 wrote: post #200
tpudlik wrote: post #192

Earlier quoted context omitted.

Re 2: this is not true if you're doing margin or futures trading, which was FTX's main business (and may be Binance's). This type of business is what characterizes an "exchange" (as opposed to a non-margin brokerage or a custodial bank).

Hence the "without your permission" caveat. Point being, when you lend your assets to brokerage, it's explicit, unlike a fractional reserve bank, where deposits are inherently lent out (and no need to comment that fractional reserve banking doesn't "really" work this way, I get it, but deposits are still part of the capitalization of the bank).

To be fair, it would be better if you explicitly lent money via certificate of deposits to the banks because it means their job is much less risky. The fractional reserve banking model isn't really something to imitate, it is a rather ugly hack that we cannot do without when people don't get enough CDs.
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