Topic: Is the Binance the next to bite the dust or FUD? - page 8. (Read 2420 times)
@o_e_l_e_o. I wish I can agree with your argument, however, if the community is taking a side with the SEC, this is a very dangerous circumstance, I reckon. You are taking a bitcoin maximalist's argument but we do not know where this stops or what this implies for all of the cryptospace including bitcoin. A victory for the SEC in this would certainly not make them stop from cracking down on bitcoin and every service, centralized or decentraized that uses bitcoin. We already witnessed what they did against Chipmixer.
-snip-
Good. The sooner we rid the space of these fiat surrogates, the better. They are centralized, fractional reserve, not backed up, printed out of thin air at will, can be seized out of your accounts at any time, and pegged to a rapidly devaluing currency. They take all the worst bits of fiat, and add in zero privacy from the centralized issuer, zero protection from scams or bugs on behalf of the centralized issuer, and complete lack of regulation or FDIC insurance. There are court documents proving that the various centralized entities which print these coins use them for their own purposes, to cook their books, bail themselves out, pump their own coins, and other generally shady and illegal activities.These stablecoins are a ticking timebomb, with several losing their peg or even collapsing outright in recent memory. It would be a wise move to sell any you are holding and your money back in to bitcoin.
@Rikafip. CZ tweeted the wallet where the $1 billion was being held on the day of the announcement.
In any case, everyone has already heard about the wells notice that Coinbase received from the SEC? I shared it in @Oshosondy's thread. This article mentions and speculates that Binance and stablecoin issuers might be next.
I speculate it might also include Defi and other projects that issued tokens.
Coinbase’s pending legal showdown with the US markets regulator has the crypto industry wondering who’s next.
Coinbase, a target for the Securities and Exchange Commission since Gary Gensler took over as chair, this week received a Well’s Notice — a formal declaration of the SEC’s intent to bring a lawsuit.
The key question now: What next?
“Oh, a stablecoin case,” Moustakis said. “I don’t mean a stablecoin used in connection with fraud. I mean an enforcement action brought against a stablecoin issuer for the issuance of an unregistered security.”
John Reed Stark, former director of the SEC’s office of internet enforcement, said that while the SEC has hinted that stablecoins may be next in the SEC’s crosshairs, he has another theory: “Binance, or maybe Tether.”
“Binance’s operations have been so void of transparency and sunlight that there’s a need for criminal prosecutorial and civil regulatory intervention,” Stark said.
Source https://www.dlnews.com/articles/regulation/stablecoins-and-binance-next-in-sec-crosshairs-after-coinbase-warning/
In any case, everyone has already heard about the wells notice that Coinbase received from the SEC? I shared it in @Oshosondy's thread. This article mentions and speculates that Binance and stablecoin issuers might be next.
I speculate it might also include Defi and other projects that issued tokens.
Coinbase’s pending legal showdown with the US markets regulator has the crypto industry wondering who’s next.
Coinbase, a target for the Securities and Exchange Commission since Gary Gensler took over as chair, this week received a Well’s Notice — a formal declaration of the SEC’s intent to bring a lawsuit.
The key question now: What next?
“Oh, a stablecoin case,” Moustakis said. “I don’t mean a stablecoin used in connection with fraud. I mean an enforcement action brought against a stablecoin issuer for the issuance of an unregistered security.”
John Reed Stark, former director of the SEC’s office of internet enforcement, said that while the SEC has hinted that stablecoins may be next in the SEC’s crosshairs, he has another theory: “Binance, or maybe Tether.”
“Binance’s operations have been so void of transparency and sunlight that there’s a need for criminal prosecutorial and civil regulatory intervention,” Stark said.
Source https://www.dlnews.com/articles/regulation/stablecoins-and-binance-next-in-sec-crosshairs-after-coinbase-warning/
However, my serious reply is I speculate that CZ might not pump the coins that he mentioned. I reckon it would be a more careful decision for him to wait when Bitcoin, Ethereum and Binance smartchain have gone down after a pump. He announced his intention already. If he pumps this, there will certainly be whales who will buy before him and dump on him.
Who is to say that he hasn't started buying already because since he announced it, prices went up ~25%. By the way, I am not saying that his announcement is the main source of this pump but it might have affected it to some degree.Binance and CZ are doing well he's always been there when things are not good in the market, we have seen his positive action during the pandemic and it has helped the market to recover, he is considered to be the industry's major influencer and someone we are looking up in times of trouble.
Why do you even need "influencer" or someone to look up to? If you use bitcoin as intended (meaning storing it in your own non-custodial wallet) and avoid shitcoins, you don't need CZ or anyone else to protect you. SBF was also presented as a good guy that just wants to help the industry and we saw how it happened. 
What will happen if Binance disappears? Imagine Binance is the biggest cryptocurrency exchange and BNB increases significantly. If something went wrong with Binance, the entire cryptocurrency market would quickly crash. No specific use of Binance will be affected. I think certain influential people aim to FUD Binance to bring down the cryptocurrency market. Yet, it appears like CZ is making a sincere effort to manage things. CZ, nevertheless, is also serious and competent. He will manage extremely well, in my opinion.
Binance and CZ are doing well he's always been there when things are not good in the market, we have seen his positive action during the pandemic and it has helped the market to recover, he is considered to be the industry's major influencer and someone we are looking up in times of trouble.
If ever Binance and CZ disappear, it will leave a big vacuum in the industry and so far there is no one here in the industry that we can consider a likely successor.
There will be a major disruption, everybody and even CZ know that so he is doing everything he can to remain compliant and stay in the business and the industry.
If CZ was indeed serious and genuinly wanted to protect his users he would put the whole 1 billion USD into bitcoin only and not spread it across two other altcoins.
And miss an opportunity to pump his centralized BNB coin? The fact that he even puts BNB in the same category as bitcoin is laughable. BNB is just as centralized and just as risky as BUSD.I made a similar reply but only jokingly hehehe. However, my serious reply is I speculate that CZ might not pump the coins that he mentioned. I reckon it would be a more careful decision for him to wait when Bitcoin, Ethereum and Binance smartchain have gone down after a pump. He announced his intention already. If he pumps this, there will certainly be whales who will buy before him and dump on him.
This means they are serious and do not want to become victim, in case stable coin crisis continues in the future.
Stable coins crisis isn't the only way Binance can bite the dust, there are so many shady things they do, like gambling and trading with depositors money, and if one of them fails, then their customers would be unable to withdraw their money.This is good news for the market
Converting this 1 billion dollars to BTC, BNB and ETH is no good news for the market or for BTC, CZ and Binance take decisions that are good for them and one they can make money from, if they cared about the market or BTC, they would stop promoting shitcoins, like theirs, and would have converted all the money into BTC.as now more people will be trusting bitcoin and Ethereum more than these stable coins.
If people place their trust on BTC through the activities of a centralized service that is hiding somewhere in Cayman Island, then they need to start all over again to understand what BTC stands for. This is good news for the market as now more people will be trusting bitcoin and Ethereum more than these stable coins.
If it takes an anti-bitcoin centralized exchange buying some bitcoin to convince someone to trust bitcoin more than a centralized fractional reserve scam stablecoin, then they really need to spend more time learning and less time throwing their money away on shitcoins.If CZ was indeed serious and genuinly wanted to protect his users he would put the whole 1 billion USD into bitcoin only and not spread it across two other altcoins.
And miss an opportunity to pump his centralized BNB coin? The fact that he even puts BNB in the same category as bitcoin is laughable. BNB is just as centralized and just as risky as BUSD.
@Rikafip. I reckon CZ might be holding much of this $1 billion in bitcoin because it has the most volume and also has much of the liquidity in the market. However, the skeptical me thinks that if he pumps bitcoin he cannot ignore his own Binance smartchain and because of this he might get criticism, so he needs also to include Ethereum in his list heheheheh.
Another major development and announcement from binance is that they will be converting their 1 billion dollar reserves from BUSD to BTC, ETH and BNB.
This means they are serious and do not want to become victim, in case stable coin crisis continues in the future.
If CZ was indeed serious and genuinly wanted to protect his users he would put the whole 1 billion USD into bitcoin only and not spread it across two other altcoins. I could even somewhat understand if he decided to divide that billion USD between BTC and ETH (with latter being a minor part) but putting money into BNB doesn't make much sense to me and its not much better than BUSD. Imagine what will happen with BNB price if Binance gets hacked for a serious amount of money, and how much that BNB part of "SAFU" fund will worth after that?This means they are serious and do not want to become victim, in case stable coin crisis continues in the future.
It it maybe known how exactly he didvided 1 billion, how much went into each cryptocurency?
So this is all about whether the exchange has collateral for the tokens they lead into circulation right, almost every centralized entity can do such activity so Binance is not an exception to it so its the decision of users whether they want to withdraw their funds or still trust the centralized entity until they fails.
I don't think Binance is now at the verge like FTX but we should never trust them completely, just use the platform what it supposed to be then there will be no issues for the end users.
I don't think Binance is now at the verge like FTX but we should never trust them completely, just use the platform what it supposed to be then there will be no issues for the end users.
We never know if binance will fall one day but as of know this does not seem to happen.
Another major development and announcement from binance is that they will be converting their 1 billion dollar reserves from BUSD to BTC, ETH and BNB.
This means they are serious and do not want to become victim, in case stable coin crisis continues in the future.
This is good news for the market as now more people will be trusting bitcoin and Ethereum more than these stable coins.
https://twitter.com/cz_binance/status/1635131601884700674
Other than the fleeting huge withdrawals, the disgust against the big failures and abuses of centralized exchanges didn't seem to bear fruit.
Don't forget that there is a constant stream of new users in to this space who are unaware of just how risky centralized exchanges are and just how many of them collapse. There are undoubtedly more people moving their money off of centralized exchanges permanently, but there are also plenty of brand new users who have not yet been stung by the collapse of an exchange to replace them.I don't think Binance is now at the verge like FTX
We would never know. Binance have spent a lot of effort on keeping their actual operations as obfuscated as possible. Difficult to know even where their offices are or which country they are registered in half the time, they move around so much. Every platform which has collapsed recently - FTX, Voyager, Celsius, BlockFi, etc. - were all loudly tweeting and blogging about how great they were doing and how fUnDs ArE sAfU right up to the day or two before they collapsed.What we should very much concered about is USDC because much of the stablecoin is presently not backed by real dollars.
Tether hasn't been backed by real dollars in years (if ever). This has been proven in court on multiple occasions. It is a fractional reserve, with more being printed out of thin air at will, and yet for some reason people still use it. I hope you are correct that this will not lead for Binance to be biting the dust because I reckon it will certainly make the cryptospace perceived as a comedy show by scammers and hustlers.
In recent events, many centralized exchanges and services have bitten the dust and people have lost so much money, if Binance is next to bite the dust, it would just be added to the long list of centralized exchanges that have collapsed. Yeah it is a bigger exchange and may have a bigger impact, but that's for shitcoins as it would expunge many of them from the network; the only effect it will have on BTC is a temporary reduction in price and a chance to buy low.This might discourage the institutional investors and encourage regulators to protect consumers by creating stricter regulations that will restrain innovation. Also, regulations are only made under an act that it was created to protect consumers. What it will do is harden the rulers' financial leadership. The cryptospace will not be ours anymore.
Or it may encourage people to look for no-KYC alternatives to buy their BTC and to only hold them in a self custody wallet. Because of how 'powerful' centralized exchanges have become, many people think they own or control the network, maybe it would teach people to know they can buy, sell and hold their BTC's without Binance.In another news, silvergate is shutting down operations.
silvergate is shutting operations and liquidating after market meltdown.
There is also the Silverbank, the Silicon Valley bank that are having problems and also another rumored unnamed bank that might also be having similar problems. Mainstream news media are making it appear that the cryptospace is the cause, however, there are information being shared social media that their problems are self inflicted.
What we should very much concered about is USDC because much of the stablecoin is presently not backed by real dollars. Circle was holding billions of the backing in one of those banks.
So this is all about whether the exchange has collateral for the tokens they lead into circulation right, almost every centralized entity can do such activity so Binance is not an exception to it so its the decision of users whether they want to withdraw their funds or still trust the centralized entity until they fails.
I don't think Binance is now at the verge like FTX but we should never trust them completely, just use the platform what it supposed to be then there will be no issues for the end users.
I don't think Binance is now at the verge like FTX but we should never trust them completely, just use the platform what it supposed to be then there will be no issues for the end users.
What will happen if Binance disappears? Imagine Binance is the biggest cryptocurrency exchange and BNB increases significantly. If something went wrong with Binance, the entire cryptocurrency market would quickly crash. No specific use of Binance will be affected. I think certain influential people aim to FUD Binance to bring down the cryptocurrency market. Yet, it appears like CZ is making a sincere effort to manage things. CZ, nevertheless, is also serious and competent. He will manage extremely well, in my opinion.
I don't hope and wish for the Binance to crumble, but whoever and anyone using Binance storing big amounts of Bitcoin on Binance should be wise enough to know that Binance is also an exchange and can still crash just like the others did.
FTX, Mt. Gox and other top exchanges crashed. Last year FTX was also reported to be the second highest exchnage in the globe but they still fell.
Expect it if you can, they're just here to make profits is it not ? Besides, they're not the reason for the creation of Bitcoin, the main reason Satoshi Nakamoto created Bitcoin was for full custody by a particular person.
Exchanges aren't really shit but they're not to be trusted with your full stacked Bitcoins and Satoshi's. Anything is possible, they can still be the next to bite the dust.
What will happen if Binance disappears? Imagine Binance is the biggest cryptocurrency exchange and BNB increases significantly. If something went wrong with Binance, the entire cryptocurrency market would quickly crash. No specific use of Binance will be affected. I think certain influential people aim to FUD Binance to bring down the cryptocurrency market. Yet, it appears like CZ is making a sincere effort to manage things. CZ, nevertheless, is also serious and competent. He will manage extremely well, in my opinion.
I hope you are correct that this will not lead for Binance to be biting the dust because I reckon it will certainly make the cryptospace perceived as a comedy show by scammers and hustlers.
In recent events, many centralized exchanges and services have bitten the dust and people have lost so much money, if Binance is next to bite the dust, it would just be added to the long list of centralized exchanges that have collapsed. Yeah it is a bigger exchange and may have a bigger impact, but that's for shitcoins as it would expunge many of them from the network; the only effect it will have on BTC is a temporary reduction in price and a chance to buy low.This might discourage the institutional investors and encourage regulators to protect consumers by creating stricter regulations that will restrain innovation. Also, regulations are only made under an act that it was created to protect consumers. What it will do is harden the rulers' financial leadership. The cryptospace will not be ours anymore.
Or it may encourage people to look for no-KYC alternatives to buy their BTC and to only hold them in a self custody wallet. Because of how 'powerful' centralized exchanges have become, many people think they own or control the network, maybe it would teach people to know they can buy, sell and hold their BTC's without Binance.In another news, silvergate is shutting down operations.
silvergate is shutting operations and liquidating after market meltdown.
I don't think it's completely baseless FUD, we all know they all know we all know they do the same things behind those desks, SBF was just too far out of his league, and lacked the same level of checks and balances.
Does this lead to Binance biting the dust? Nah. Does it mean they won't eventually bite the dust? I won't dismiss the possibility entirely, but it won't be because of this. If I'm wrong and it does? What doesn't kill Bitcoin only makes it stronger =)
Does this lead to Binance biting the dust? Nah. Does it mean they won't eventually bite the dust? I won't dismiss the possibility entirely, but it won't be because of this. If I'm wrong and it does? What doesn't kill Bitcoin only makes it stronger =)
I hope you are correct that this will not lead for Binance to be biting the dust because I reckon it will certainly make the cryptospace perceived as a comedy show by scammers and hustlers. This might discourage the institutional investors and encourage regulators to protect consumers by creating stricter regulations that will restrain innovation. Also, regulations are only made under an act that it was created to protect consumers. What it will do is harden the rulers' financial leadership. The cryptospace will not be ours anymore.
News update for everyone.
Short seller Marc Cohodes said his early scepticism of bankrupt crypto exchange FTX and disgraced CEO Sam Bankman-Fried led him to short the company’s main bank, Silvergate.
As fears surrounding Silvergate’s finances clobber the stock price, the short seller has turned his sights – and bearish bets – to two companies that he claims are analogous: crypto exchange Binance and Signature Bank.
He colourfully explained his thinking about Signature to DL News: “They have major problems, and they have very similar issues to Silvergate. It’s not as exposed to crypto as Silvergate, but their loan book is terrible. And they have huge KYC and AML liability.”
”This is not rocket science,” Cohodes said. “Signature is next, Binance is next.”
Source https://www.dlnews.com/articles/people-culture/short-seller-marc-cohodes-shorts-signature-silvergate-binance-ftx/
Binance collapsing will indeed cause a massive damage to the industry which will, in turn, pull the prices considerably down. But if this is what it takes for people to finally realize that centralized exchanges are a thing to avoid and are even antithesis to Bitcoin itself; if this is what it takes for people to finally embrace self-custody fully, I guess I will accept it.
True, in that case market would crash and burn but Binance going down wouldn't drastically change how people perceive crypto exchanges, meaning they would still think of them as banks. One would think that after Mt.Gox fail we would have loads of highly popular decentralized exchanges like Bisq, while reality is diametrically opposite and centralized exchanges keep growing and spreading, with some of them like Kraken even announced plans to launch a bank. Its been proven time after time that majority of people prefer sense of convenience and false security over anything else and if not with Binance, they would find it with Coinbase or any other popular centralized exchange and all the bad stuff would be soon forgotten.
Unfortunately, I have to agree with you. Sadly, all the evidences are pointing towards the probability of centralized exchanges continuing to thrive even if Binance will fall. Mt. Gox fell. There was the QuadrigaCX scandal. Bitfinex got hacked. Cryptopia collapsed. Even Binance got hacked and personal information leaked. FTX collapsed. The list is very long already and yet there never was a DEx that surfaced and stole the limelight. Other than the fleeting huge withdrawals, the disgust against the big failures and abuses of centralized exchanges didn't seem to bear fruit.
I don't think it's completely baseless FUD, we all know they all know we all know they do the same things behind those desks, SBF was just too far out of his league, and lacked the same level of checks and balances.
Does this lead to Binance biting the dust? Nah. Does it mean they won't eventually bite the dust? I won't dismiss the possibility entirely, but it won't be because of this. If I'm wrong and it does? What doesn't kill Bitcoin only makes it stronger =)
Does this lead to Binance biting the dust? Nah. Does it mean they won't eventually bite the dust? I won't dismiss the possibility entirely, but it won't be because of this. If I'm wrong and it does? What doesn't kill Bitcoin only makes it stronger =)
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