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Binance temporarily suspends USDC withdrawals

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Re: Binance temporarily suspends USDC withdrawals

#91

Post by pavlov »

ivanmontillam wrote: post #68
unsigner wrote: post #58

Earlier quoted context omitted.

My Argentinian friends tend to view everything that happens in Argentina as part of either some nefarious plot by the US government, or the glorious struggle of the brave Argentinian people against the US government. They would certainly view anything that happens with Binance, or even FTX/SBF as the US government trying to screw them over.

I try not to be like that, but sometimes it appears like so. Most of the time it's truly hard to see any alternative explanation, and I invest a lot to have the most nurtured worldview possible, with all the points of view considered. And even then, it's really hard to think in plausible alternative explanations that do not feel like pulling hair out of the head. It's like duck typing : walks like a duck, quacks like…

The US Department of Justice suspects Binance of processing over $10 billion in illicit funds during 2022 alone. Whatever goes on in Argentinian P2P markets is an insignificant blip against this background.

It sounds like you have a bit of a persecution complex going on. It's unfortunate if the effects on your corner of the world are negative, but it's really not even on the Americans' map most of the time.

How about creating a local solution for your local needs instead of relying on a company like Binance whose operating principles are: "We are not headquartered anywhere, our auditor says they don't know what our parent company is named, but we'll happily transmit money to Iran"? That always seemed like it might catch up with them...

Re: Binance temporarily suspends USDC withdrawals

#92

Post by causi »

Galanwe wrote: post #56
janmo wrote: post #37

Earlier quoted context omitted.

It is not reasonable at all. It means that: 1. They are not prepared at all for a "bank run" 2. USDC on the exchange are not backed by real USDC. Therefor they need to market buy them. 3. CZ is telling people to withdraw using BUSD and USDT, both more or less Binance controlled stables that are much harder to convert into real USD. It would be extremely wise to exit Binance and Binance related coins such as BNB, BUSD…

> They are not prepared at all for a "bank run" Nobody is prepared for a bank run, that would be idiotic. It would mean storing strictly only liquid assets. > USDC on the exchange are not backed by real USDC. Therefor they need to market buy them. That's pure speculation on your side... Withdrawal pauses have happened many times in the past, it's not really alarming. Only when something bad happens afterward do peopl…

Nobody is prepared for a bank run, that would be idiotic. It would mean storing strictly only liquid assets.

No bank is prepared for a bank run. It's not supposed to be a bank. Banks make money by using customer deposits to generate revenue through loans. Exchanges make money through fees and aren't supposed to be using customer deposits at all.

Re: Binance temporarily suspends USDC withdrawals

#93

Post by Galanwe »

c7b wrote: post #88
Galanwe wrote: post #56

Earlier quoted context omitted.

> They are not prepared at all for a "bank run" Nobody is prepared for a bank run, that would be idiotic. It would mean storing strictly only liquid assets. > USDC on the exchange are not backed by real USDC. Therefor they need to market buy them. That's pure speculation on your side... Withdrawal pauses have happened many times in the past, it's not really alarming. Only when something bad happens afterward do peopl…

> Nobody is prepared for a bank run, that would be idiotic. It would mean storing strictly only liquid assets. Binance is a broker, not a bank. A bank run on a broker simply shouldn't be possible. A broker is supposed to hold whatever the customers want to hold on their behalf (in so-called segregated accounts, so that the assets belong to the users, even if the broker should go bankrupt). If the users want to withdr…

Holding does not mean holding _now immediately liquid assets_. For the 10000th time: no single broker has ever been instantaneously liquid.

Re: Binance temporarily suspends USDC withdrawals

#94

Post by hef19898 »

Galanwe wrote: post #83
hef19898 wrote: post #63

Earlier quoted context omitted.

Banks are, up to whatever the legally guaranteed deposit insurance is, prepared for bank runs. And I never heard of actual banks limiting or even pausing withdrawls, non-cash, ever. And those cases where they do, e.g. Libanon, are a dead give away the economy is fucked. So, drawing from that parallel, the crypto economy might very well be fucked.

How did you end up comparing Binance to a bank? The closest equivalent to what Binance is would be a broker. Now I challenge you to find any broker on the planet that can promise instant FX swap settlement on the same day for a cash account. Don't compare apples and bananas.

If I have someobe holding my crypto currency, that is as close to a crypto bank as it gets. Otherwise crypto woupdn't be money but some form of security. In which case, one has to ask, it is not regulated as such.

And show me one broker that refused, regardless of transaction fees or other contractual stuff, customer wothdraels of funds. Other than those brokers that actually "lost" customer funds. Which is, by the way, also fraud.

Re: Binance temporarily suspends USDC withdrawals

#95

Post by rhaway84773 »

sammy2255 wrote: post #86

Lmao HN has such a hate boner for crypto

Crypto has such a hate boner for Crypto.

Destroyed over $2tn in value and is frauds all over the place.

Any hate boner HN may have for crypto pales in comparison to what the crypto people have for it.

Re: Binance temporarily suspends USDC withdrawals

#96

Post by hef19898 »

ls15 wrote: post #90
hef19898 wrote: post #63

Earlier quoted context omitted.

Banks are, up to whatever the legally guaranteed deposit insurance is, prepared for bank runs. And I never heard of actual banks limiting or even pausing withdrawls, non-cash, ever. And those cases where they do, e.g. Libanon, are a dead give away the economy is fucked. So, drawing from that parallel, the crypto economy might very well be fucked.

I've seen a bank branch being temporarily out of cash and hence pausing withdrawals in a relatively functioning economy before. Happens. ATMs at my bank in Germany were down because of a strike.

But we still could transfer money out to other accounts at other banks, couldn't we? And that is what those crypto exchanges are blocking.

Re: Binance temporarily suspends USDC withdrawals

#97

Post by Johanx64 »

cypress66 wrote: post #66
mikelovenotwar wrote: post #51

Earlier quoted context omitted.

I wish for large international ponzi schemes to cease to be, preventing further influx from people who don't know better. For those already in the ponzi scheme there's little that can be done to convince them they're in a ponzi scheme, or cult. People lose their money on many things, hard earned or otherwise, regardless wishing that avenues which are designed to facilitate such losses cease to exist is not mean spiri…

Your entire comment hinges on the idea that Binance is a scam, which nobody knows for a fact. And I would hope binance is not a scam, so people don't lose their money.

What we do know is that binance hasn't ever done a proper audit, considering that, I can call Binance a scam with a high degree confidence and the only way for me to stop saying it is by them doing a full audit by a reputable company.

Which they are not going to do since they are scam.

Re: Binance temporarily suspends USDC withdrawals

#98

Post by yebyen »

Galanwe wrote: post #70
flumpcakes wrote: post #65

Earlier quoted context omitted.

> Nobody is prepared for a bank run It's an exchange. Your money should be 100% liquid. Everyone should be prepared for a bank run. Unless they're just as dodgy as FTX and using everyone else's money for shenanigans. I don't know why people are defending this as if it is a good thing.

Sorry but no. No single broker on the planet is instantly liquid. At the very best daily liquid. Most currency settlements are between 1 and 3 days for DM. Your "feeling" of instantaneous transfers is just front office display, the real back office takes days.

If your exchange is taking your deposits and market selling them before you have them on the market then they are front-runners and they cheated you.

I don't know how else to say it, your buying power is not their buying power just because they have it on deposit and you trusted them.

That's the thing we trusted them not to do, and that's how exchanges like FTX lose the trust of their customers. If you think this is just the cost of doing business, you're a fool.

Crypto currencies do not take days to move from point a to point b. That is old world baggage.

Re: Binance temporarily suspends USDC withdrawals

#99

Post by sammy2255 »

rhaway84773 wrote: post #95
sammy2255 wrote: post #86

Lmao HN has such a hate boner for crypto

Crypto has such a hate boner for Crypto. Destroyed over $2tn in value and is frauds all over the place. Any hate boner HN may have for crypto pales in comparison to what the crypto people have for it.

Oh and the US market too? How much value has that lost this year?

Re: Binance temporarily suspends USDC withdrawals

#100

Post by nailer »

madsbuch wrote: post #12
joyfylbanana wrote: post #9

Earlier quoted context omitted.

I think what is interesting here is that they clearly don't have 1:1 USDC reserves. And as their compliance has been questioned by many in the past might be that they might not be able to convert large amounts of BUSD to USDC, not at least cheaply.

They do, Both USDC and BUSD are backed by actual dollars. Ie. 1. Burn 1 BUSD 2. Withdraw that 1 dollar 3. Deposit it with the USDC account 4. Mint one USDC However, that requires that banks are open.

Binance replacing USDC with BUSD is not having USDC reserves. If Binance had USDC reserves they would not need to burn BUSD, mint USDC or require banks to be open. Because Binance already would hold the USDC.

Likewise if something happened to the value of BUSD, it should be fine, because you hold USDC. Except you don't because Binance replaced the coins they were supposedly holding in custody for you.

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