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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

#461

Post by netheril96 »

ineedasername wrote: post #274
29athrowaway wrote: post #266

Not your keys, not your coins

That outlook has severe limitations though. Specifically that self-custody has very high barriers to actually using those coins without having them pass through some more centralized system at some point. There’s no cash equivalent (as yet) that is as frictionless as actual cash. Maybe the next gen of tech tech that grows from these ashes will address that problem more directly, and get more traction than prior attem…

Well, at least we can minimize the period when the keys are not ours. If we keep the coins only for a few days on the exchange, it is unlikely that the exchange falters just during that time. But if we keep it for years, it is likely we will lose it eventually.

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

#462

Post by c22 »

SheinhardtWigCo wrote: post #443
raven105x wrote: post #438

Earlier quoted context omitted.

If you have assets in any* exchange, get them out now. Using regulated exchanges defeats the whole point. Fiat transaction fees are lower / nonexistent compared to CC ones so if you want to gamble on the relative value of something just stick to the stock market, and if you want to send currency on something that is regulated by a government anyways, might as well use Fiat. The only thing regulated exchanges do is pr…

Exchanges provide a lot of added value, at least ones that aren't run by criminals or idiots. Wallet keys stored on a phone or laptop, or even a hardware wallet, are generally less safe than the reserve wallets of a major exchange. I can lose the device, it can break or be stolen, etc. Writing down recovery phrases and stashing them in the sock drawer doesn't feel very safe either. And if something happens to me, I f…

Give your keys to your lawyer?

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

#463

Post by landemva »

JumpCrisscross wrote: post #295
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.

> missing some critical part in my comparison Companies can sell stock to fund useful activity.

The past decade companies have sold debt to raise funds to repurchase stock to drive up stock price so senior management can meet their KPI and get a larger bonus.

This is useful activity for society because senior management deserves more money and they work really hard to earn it. /s

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

#464

Post by bogomipz »

oblio wrote: post #366
pfoof wrote: post #333

Ok, so "web3-metaverse-blockchain" bubble is bursting, only the AI one is growing in a good direction.

ML is backed by solid science from the 80's and we've always known it would have uses, we just didn't have the computing power for it.

Isn't there still the thorny issue though that we don't know "why" some the ML works? See:

"The Dark Secret at the Heart of AI":

https://www.technologyreview.com/2017/04/11/5113/the-dark-se...

and

"Machine Learning Works Great—Mathematicians Just Don't Know Why":

https://www.wired.com/2015/12/machine-learning-works-greatma...

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

#465

Post by everybodyknows »

scoofy wrote: post #408
m3kw9 wrote: post #397

Earlier quoted context omitted.

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…

Hmm, could wash trading have played some part in the apparent success of Donald Trump's "digital trading cards"?

https://www.coindesk.com/web3/2022/12/16/trump-nft-collectio...

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

#466

Post by bulbosaur123 »

digitaltrees wrote: post #352
coffeebeqn wrote: post #294

Earlier quoted context omitted.

BTC won’t vanish but most all other ones will revert to their natural state outside of the last few years bubble (zero-ish). I’m sure BTC will still be worth some thousands. And I’m a BTC long term skeptic

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

Not true. Only censorship-resistant asset. Only asset in entire universe that cannot be confiscated.

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

#467

Post by FireBeyond »

digitaltrees wrote: post #362
superjan wrote: post #163

Earlier quoted context omitted.

Isn’t Tether controlled by bitfinex?

The large exchanges were shown to have a signal chat group to coordinate activities. Total illegal collusion in any other financial institution but hey crypto is the Wild West. Not that outlandish to think they collaborate when necessary.

Oh there's a lot more to it than chat groups.

Bitfinex loaned money to Tether. On the loan contract, three people, we'll call them AB, CD, and EF, signed the contract on Bitfinex's behalf.

On the other side of the contract, Tether signed the contract for the loan. The three people on the loan signatories page for Tether? AB, CD, and EF.

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

#468

Post by koonsolo »

AceJohnny2 wrote: post #260

> as the crypto exchange battles to avert a crisis of confidence. We used to call those a "bank run".

No, a bank run is the consequence of fractional reserve system. Crypto exchanges should have 100% of their crypto covered by assets.

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

#469

Post by tasuki »

chx wrote: post #284
ineedasername wrote: post #275

Earlier quoted context omitted.

If they’re negative sum then so are traditional payment processors that charge transaction fees, which is not an argument I’d be prepared to make. Unless you see something fundamentally different about the nature of those fees in crypto?

It's because you can transfer money without paying fees, those fees are for convenience. You can not transfer crypto without paying fees. Also, notably most banks will do SEPA transfers for free. There's nothing inherent in money which would make the action of moving it force giving a fraction of it to some other entity. Indeed, the only disagreement I am aware of is whether the scam being run by multiple entities ("…

You said:

> But the fact it is a scam is an indisputable and rather simple mathematical fact.

And:

> negative sum games and thus are scams

I don't think you know what the word "scam" means.

Merriam Webster defines it as "a fraudulent or deceptive act or operation". I don't think either Satoshi or Vitalik did anything deceptive or fraudulent.

Whether or not something is a scam is not a matter of "simple mathematical fact", but rather of intent.

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

#470

Post by seydor »

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.

Keeping in mind that it is indeed not a coincidence, since the whole reason why binance wanted the "audit" is the whole crypto debacle and FTX, and that auditors did not wish to audit any non-us-based exchange
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