Hacker News Board Hacker News, browsed like a classic message board
Live data from Hacker News

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

ft.com

Post reply on HN
Print view View original

491–500 of 506 posts

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

#491

Post by HDThoreaun »

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…

Counterparty risk of exchanges blowing up is exactly why tether doesn’t have a gigantic short volume outstanding. Shorting stablecoins or coins that represent profit share of exchanges like bnb is incredibly risky and that’s largely on purpose, the ecosystem doesn’t want people shorting it.

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

#492

Post by janejeon »

bufferoverflow wrote: post #133
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.

How do you lose so much money when your business it to charge fees? You'd have to do something really stupid to not make money.

It's really weird, because "typical" exchanges (NYSE, NASDAQ, CME, etc) typically charge like, what, a few basis points to trade? Coinbase is charging .60%, an order of magnitude of higher fees, and yet they're still somehow losing money?

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

#493

Post by bragr »

littlestymaar wrote: post #479
femto113 wrote: post #415

Earlier quoted context omitted.

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

”But bitcoin solves the double spending problem”

Yes but slowly

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

#494

Post by chx »

tasuki wrote: post #469
chx wrote: post #284

Earlier quoted context omitted.

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 f…

Whether the operators of mining farms have mens rea is a matter for criminal courts. No one tried to sue them yet, perhaps no one will. Perhaps some aspiring DA will try. Who knows.

That doesn't change the fact they run the scam.

I wrote this up before but here it comes: if there's an empty room and a few people come, play a few rounds of a card game and then leave and the room is empty then it is obvious the sum of their money couldn't change. Some won, some lost but the sum is the same. This is called a zero sum game. If they decide to use plastic chips during the game and only use real money in the beginning and the end, nothing has changed.

However, if someone takes a cut every time the chips are being moved around then that person is guaranteed to win and the players in total are guaranteed to lose and a game where we know who wins without knowing anything about the game is quite obviously a scam.

Your only way to win is to hype up the game and sell your chips to an outsider who will now sit on an even bigger loss. Might not be realized yet but it is there.

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

#495

Post by seydor »

imtringued wrote: post #426
che_shirecat wrote: post #416

Earlier quoted context omitted.

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?

I think it's a performative figure of speech, as if "i disagree with your comment and i think i will end up being right". Not meant to be taken for its literal content

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

#496

Post by nwienert »

oblio wrote: post #477
nwienert wrote: post #447

Earlier quoted context omitted.

AI hasn’t threatened anything yet (in a not good way), so it hasn’t met regulation. Crypto threatened monetary systems, finance, VC, banks… and because of that attracted both all the money and all the ammunition from this recent QE hyper bubble. Now as it pops it’s very easy to say “look see it sucks,” but this shallow analysis, will it hold outside of the current recession? AI makes lots of splashy headlines but whe…

> but it also has good fundamentals in that it stands to distribute power towards the masses I have a bridge in Brooklyn to sell you. Heck, I'll throw in some Brooklyn Bridge NFTs in, for good measure. 2,533 NFTs in total at $99 each.

Without any argument, this is just cope

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

#497

Post by andirk »

MarkPNeyer wrote: post #56
eloff wrote: post #45

Earlier quoted context omitted.

Cryptocurrency is a useful proxy for people behaving badly. Maybe because it’s unregulated, maybe because it was such an easy target for grifters of all sorts.

Note that FTX didn’t own a single bitcoin. They had lots of knockoffs, but no bitcoin.

They had lots of FTT too.

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

#498

Post by AceJohnny2 »

koonsolo wrote: post #468
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.

> should have

lol

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

#499

Post by CuriousCosmic »

stanleydrew wrote: post #398
CuriousCosmic wrote: post #343

Earlier quoted context omitted.

Oh I agree. Traditional centralised exchanges (CEX) are largely normal exchanges. Of all the things in the cryptocurrency space, they are one of the only things that cleanly fits into an existing box. Binance, FTX, Coinbase, Kraken, CoinEx, etc are all just traditional financial exchanges and should be forced to comply with existing regulations because they can. They can do traditional KYC and AML in addition to the…

I guess this might be a nitpick, but I don't think most cryptocurrency exchanges do function like "traditional financial exchanges." They seem to operate more like a combination of exchange and brokerage. I'm not an expert but I don't think "traditional financial exchanges" hold assets to be traded on behalf of customers. I think they are just meeting points for traders, and they host the public order book.

ah good point. misspoken on my end. They operate like both the exchange and broker.

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

#500

Post by vineyardmike »

taspeotis wrote: post #320
vineyardmike wrote: post #238

Earlier quoted context omitted.

They publicly disclose this info ;) They have >4k employees. Assuming they make US minimum wage, they would cost almost 240,000,000/yr. It’s almost certainly MUCH higher. They spend $550b a quarter on R/D. That’s likely mostly salary. https://s27.q4cdn.com/397450999/files/doc_financials/2022/q3...

> They spend $550b a quarter on R/D. That’s likely mostly salary. What does b stand for again…

Billion?
Post reply on HN