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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

#451

Post by dragonwriter »

fabian2k wrote: post #264
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...

FTX had many parts, did that audit actually cover all of them or was that just for a subset of companies?

> FTX had many parts, did that audit actually cover all of them or was that just for a subset of companies?

No; this is covered in detail in the FTX et al. bankruptcy filing.

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

#452

Post by RC_ITR »

m348e912 wrote: post #389
digitaltrees wrote: post #352

Earlier quoted context omitted.

At least Tulip bulbs can be planted. Crypto just burns electricity. The value of crypto is actually negative at this point.

People have been making the crypto tulip comparison since when bitcoin was worth less than $100. Not saying you're wrong at this point, but if you're right, you're about as right as a broken clock.

If your argument is that a few years of irrational market pricing is meaningful, then boy do I have some Enron shares to sell you in 2001.

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

#453

Post by baobabKoodaa »

jacquesm wrote: post #439
jazzyjackson wrote: post #437

Earlier quoted context omitted.

the goal is communication is not always clarity the fun of sarcasm is knowing enough to recognize it if somebody is too out of the loop to recognize it and picks an argument, it's collateral damage

That may be so, but in normal communications, such as speech it is tone of voice and possibly non-verbal hints that will indicate sarcasm. Online you don't have that and the 'collateral damage' can result in a lot of wasted bits from people reacting to the words rather than to the joke and this in turn can drown out the rest of the discussion.

Adding a /s to a post is the internet equivalent of saying "just joking haha" after saying a joke. It ruins half of the fun.

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

#454

Post by more_corn »

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.

Take your money out while you still can.

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

#455

Post by jacquesm »

RC_ITR wrote: post #452
m348e912 wrote: post #389

Earlier quoted context omitted.

People have been making the crypto tulip comparison since when bitcoin was worth less than $100. Not saying you're wrong at this point, but if you're right, you're about as right as a broken clock.

If your argument is that a few years of irrational market pricing is meaningful, then boy do I have some Enron shares to sell you in 2001.

That's definitely true. What - unfortunately in some ways - is also true is that a lot of people cleaned up on both Enron and bitcoin. They did this ultimately at the expense of other people but those people too were trying to do the exact same thing.

It's effectively one group of greedy people feeding off people that are greedy too but a bit later to the musical chairs game. And so they end up without chairs, but if you start such a game you already know that somebody is going to end up without a chair, you just hope it won't be you.

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

#456

Post by jacquesm »

guipsp wrote: post #382
cj wrote: post #132

Earlier quoted context omitted.

Here's the un-editorialized full text from their SEC filing: > Moreover, because custodially held crypto assets may be considered to be the property of a bankruptcy estate, in the event of a bankruptcy, the crypto assets we hold in custody on behalf of our customers could be subject to bankruptcy proceedings and such customers could be treated as our general unsecured creditors. This may result in customers finding o…

You call it uneditorialized, but it is simply editorialized in a different direction.

I fail to see what this contributes.

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

#457

Post by jacquesm »

baobabKoodaa wrote: post #453
jacquesm wrote: post #439

Earlier quoted context omitted.

That may be so, but in normal communications, such as speech it is tone of voice and possibly non-verbal hints that will indicate sarcasm. Online you don't have that and the 'collateral damage' can result in a lot of wasted bits from people reacting to the words rather than to the joke and this in turn can drown out the rest of the discussion.

Adding a /s to a post is the internet equivalent of saying "just joking haha" after saying a joke. It ruins half of the fun.

https://en.wikipedia.org/wiki/Poe%27s_law

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

#458

Post by ethbr0 »

europeanguy wrote: post #222
ethbr0 wrote: post #170

Earlier quoted context omitted.

Oof. The preliminary corporate outline in Appendixes B of the filing is a lot. I guess presumably you'd want to compartmentalize risk via corporate structures in as sprawling of a business as FTX was ( especially if you were aware you had terrible internal controls), but it does beg the question of what nature of business each of these entities was engaged in. I.e. if they conducting actual business and so their exis…

It wasn't a "as sprawling of a business as FTX was". It was a shell game.

FTX (in total) was an entity that operated in most countries in the world, under their regulatory regimes (if existent), across four(+?) major, different lines of business.

That's not a "one corporate entity + a few international ones" type of endeavor.

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

#459

Post by netheril96 »

tpudlik wrote: post #192
hn_throwaway_99 wrote: post #49

Earlier quoted context omitted.

One clarification: 1. For a bank run on an actual bank, it is known that a bank doesn't keep all your assets on hand - they are loaned out, which is (largely) what allows you to earn interest. So it is known that if everyone tries to withdraw at the same time that there won't be enough money. 2. For an exchange/brokerage, your money/assets are explicitly NOT supposed to be lent out without your permission. So, in the…

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).

In theory, the exchanges should lend their own money to margin traders.

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

#460

Post by netheril96 »

sdwr wrote: post #394
HDThoreaun wrote: post #219

Earlier quoted context omitted.

Perpetual futures don't require any margin. All it requires is matching buy side and sell side market participants and transferring money between their accounts as the underlying changes in value. The exchanges don't actually hold any underlying with perps, so there's no need to borrow money.

How does a perpetual future actually work?? What happens if 5 people buy the "sell" side and 1 person buys the "buy"? There's no way to redeem to the underlying, and I don't think the 1 person pays out 5x the price movement to the other side. An exchange can hedge vs excess buy orders by buying the underlying, but how do they hedge vs excess sells? I've been trying to figure out how to short BNB, and perps feel prett…

If five person buys and one person sells, only one person actually has the buy order executed. The other four are just waiting in line.
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