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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

#481

Post by tim333 »

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.

That assumes that at the end of the game your bitcoins etc do not have a market value which does not accord with reality. For better or worse people value them like collectibles.

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

#482

Post by acdha »

hyperdunc wrote: post #441
jacquesm wrote: post #435

Earlier quoted context omitted.

I think your degree of resilience in dealing with such setbacks is something to strive for, at the same time please be more careful in the future, the price of such setbacks tends to go up as you get older and even though you managed to get through this one in relatively good shape (if not financially, then at least mentally) the next time around you may not be so lucky.

What's this trend of telling others to please do something? I've seen it all over HN this year and it's so condescending.

It can be condescending but that’s not the only option. There’s been a lot of upset recently and older posters who remember 2000 and 2008 are trying to spare people the pain a lot of us either experienced personally or saw friends encounter. Based on his years of posting, I’m sure Jacques is in the latter category.

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

#483

Post by throwoutway »

jefftk wrote: post #330
kevin_thibedeau wrote: post #328

Earlier quoted context omitted.

They didn't say that they passed, just that they claimed to "complete requirements" needed to pass. The financial engineering version of lying with facts like "assembled in USA from foreign components".

They claimed to have passed: 2021-07-21 "Yesterday, FTX became the first (?) crypto derivatives exchange to complete a GAAP audit!" -- https://mobile.twitter.com/sbf_ftx/status/142135472191111577... 2021-08 -26: "Both @FTX_Official and @ftx_us have passed US GAAP audits and plan to continue getting audits going forward." -- https://twitter.com/SBF_FTX/status/1431087427154849795

I assume they were counting the FTT tokens as actually holding value when they were propped up

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

#485

Post by jcpham2 »

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.

I have dogecoin wallets worth thousands from 2014 and such when we were joke mining before it had value - it isn’t that hard to fathom if you’ve operated in this space for a decade.

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

#486

Post by godzillabrennus »

worik wrote: post #395
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.

> 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. That does happen. About a decade ago I dug into FX flows. The trade in USD was eighty times trade flows. FX is a nasty business, huge profits to be made, profits that can be multiplied by the slightest bit of undetectable (now the traders know…

Bingo.

Michael Milken even got a presidential pardon,

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

#487

Post by godzillabrennus »

landemva wrote: post #428
chx wrote: post #240

Earlier quoted context omitted.

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.

Junk mail via the postal service has entered the conversation…

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

#488

Post by janejeon »

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…

It is telling that a firm like Jump Crypto has pulled hundreds of millions of dollars from Binance. If smart money is getting out, you might want to get out before the doors close: https://www.coindesk.com/markets/2022/12/13/binance-withdraw...

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

#490

Post by janejeon »

jacquesm wrote: post #79
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…

Exactly, and one more: they may have been shuttling money around from account to account to look solvent but aren't.

Isn't this exactly what Tether is accused of doing?
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