Too much FUD: Why FUD against Binance doesn't seem to be justified

Chilwell

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Quote from: 1miau on December 17, 2022, 06:19:42 PM

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@1miau, When I was reading through this topic, I noticed that the image had become outdated, and I really wanted to know what was there, so I decided to download it, then upload it back to the forum using TalkImg.com so that the image could be seen and stay longer in the forum. Here is the new link to the thread, which I organized based on the series in the thread. I'm posting it here for you, OP, to make it easy so you can fix it in a shortest time if you are less busy.

Code:

[img]https://www.talkimg.com/images/2024/01/10/sgcwb.png[/img]

[img height=500]https://www.talkimg.com/images/2024/01/10/sghEv.png[/img]

Kryptowerk

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Quote from: DaveF on December 18, 2022, 09:15:57 PM

And then you read something like this: https://dirtybubblemedia.substack.com/p/is-binanceus-a-fake-exchange

So, more and more Binance looks like it's doing something funky.
And that is, at least part of the issue too. They might not be shady, but they keep doing things that make them look like they are.

People might not like a lot of things that Coinbase and other super regulated want all your KYC info and report to the government exchanges do. But, at least their books are fully open.

Still, not your keys not your coins no matter what.

-Dave

Not exactly what I was hoping to read, but very well researched and well explained article.
It could just mean that BinanceUS is not run the way it should be regarding US regulation (mixing of funds with other Binance platforms) - or, worst case, it would indicate that some liquidity is indeed missing and the sum of all balance sheets is not en par with the total funds that are stored on the Binance platforms.
I wonder if this will be addressed by the so-called Binance-transparency-campaign because the evidence for that shady USDT tranfer is clear as day.
And also makes me wonder why there is not a bigger discussion about it on most crypto-news sites.

BenCodie

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Quote from: DaveF on December 18, 2022, 09:15:57 PM

And then you read something like this: https://dirtybubblemedia.substack.com/p/is-binanceus-a-fake-exchange

So, more and more Binance looks like it's doing something funky.
And that is, at least part of the issue too. They might not be shady, but they keep doing things that make them look like they are.

People might not like a lot of things that Coinbase and other super regulated want all your KYC info and report to the government exchanges do. But, at least their books are fully open.

Still, not your keys not your coins no matter what.

-Dave

This is a fantastic article. Great share.

I believe that the binance shadiness goes a lot deeper, but a lot is hard to prove. I would love to know about the true political affiliations and motives of Binance...however I think we won't find out until it's too late to be able to do anything about it if we don't like it.

bbc.reporter

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Quote from: 1miau on December 17, 2022, 06:19:42 PM

FUDsters on social media are out in strong force again, trying to suggest that Binance would be about to collapse any day now. Roll Eyes

Agreed! I do not want to bring race and ethnicity into this similar to what Kanye has done when he talked about who controls hollywood or much of the medical industry , however, there appears to be something similar to what is happening in the cryptospace.

Sam Bankman-Fried and Alex Mashinsky created ponzi schemes, but cryptonews media is not really exposing the truth of what they did.

Barry Silbert is another one. There is something happening with those cryptocoin projects connected with his companies after a coordinated dump, however, cryptonews media is quiet on this.

Changpeng Zhao, a china man with no proven record that he created a ponzi scheme, however it appears that there is a negative propaganda against him.

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DaveF

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And then you read something like this: https://dirtybubblemedia.substack.com/p/is-binanceus-a-fake-exchange

So, more and more Binance looks like it's doing something funky.
And that is, at least part of the issue too. They might not be shady, but they keep doing things that make them look like they are.

People might not like a lot of things that Coinbase and other super regulated want all your KYC info and report to the government exchanges do. But, at least their books are fully open.

Still, not your keys not your coins no matter what.

-Dave

Alpha Marine

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Quote from: 1miau on December 17, 2022, 06:19:42 PM

FUDsters on social media are out in strong force again, trying to suggest that Binance would be about to collapse any day now. Roll Eyes

While some criticism against centralized exchanges is definitely justified, the recent wave of FUD against Binance is not beneficial at all because it's mainly based on speculations.

To an extent you can't blame them. So many things have been happening lately and not everybody is able to analyze a situation like you. For a person that does not know how to analyze the situation or keep a cool head they'll definitely panic.
The thing about social media is, everybody is just voicing their opinion while some are just tying to appear smarter than the rest. This leads to so many wrong information most of the time. There this herd mentality about social media and that's why I don't take it too seriously.

1miau

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Quote from: Kakmakr on December 18, 2022, 02:24:50 AM

I hope I am wrong... but this is cannot be a coincidence that we suddenly see a up surge of FUD against Binance. Roll Eyes

Good point, Binance has many enemies all over crypto space for whatever reasons. Binance has become a real big player and many competitors are not amused by how much market share Binance has secured over time.
Since Binance is also a big player in "DeFi" (in reality it's more a centralized "DeFi"), launched an own native Coin and a Stablecoin, Binance is far more than only just a crypto exchange nowadays.

It wouldn't surprise me if some competitors of Binance would be trying to facilitate a negative sentiment against Binance...
But as long as Binance is transparent and honest, I don't see any negative consequences for Binance at all.

DaveF

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As has been posted many times about this its not just the reserves it's the liabilities.

I can show the fact that I have "X" in my bank account and wherever else.
But it's 1000% meaningless unless you see how much I owe and if I promised that same "X" to 4 different people.

That is the point.

Doing one without the other is just about pointless.

If comes down to two things.
1) We don't know what we don't know. So if they don't open their books, we just don't know where (if anywhere) those reserves are needed.
2) Not your keys, not your coins.

-Dave

BenCodie

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Quote from: bittraffic on December 18, 2022, 04:32:19 AM

Quote from: BenCodie on December 18, 2022, 04:05:36 AM

People should not be scared or worried about Binance's reserves. I think there is no doubt that they have what they claim. Maybe even more than what is disclosed.

What people should worry/research about is how much power they are consolidating, especially after FTX. We should take off the cz safu veil and remember that Binance is a for-profit company that is embedded politically in many states throughout the world, including their home, and how much effect this can potentially have on the world.

One issue that some fraudsters were talking about was the reserves of BUSD but CZ already said its reserve is in NY which is held by Paxos. I think there is true also base on the data online.

Yesterday CZ tweeted also that it's actaully better for users to withdraw their funds from exchanges. So this is really an attack on binance while the reasons are not justified and Kevin O'leary is a liar.

I don't know why you are replying to my post, what you said has almost nothing to do with what I had posted. My post was in relation to the whole topic being a diversion from what everyone should really be focusing on. How much power does Binance have and what effect will this have on the world now and in the future?

I would not call Kevin O'leary a liar either. He is a pretty intelligent person.

posi

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Quote from: dansus021 on December 17, 2022, 08:26:12 PM

Quote from: 1miau on December 17, 2022, 07:03:23 PM

That's my impression as well. Binance has been growing comparably slow, but steady and that's an important basis for a robust platform. Binance may have a BUSD which is always subject of speculations and some shady shitcoin offers, offering customers a comparably high yield but not that high that I would expect it's not legitimate.
After all, I expect Binance to learn from what hapened recently and tidy up all branches in question.
And that would be very good overally to get more robust exchanges learning from the past.

Im not try to defend the binance but after the fud happened Binance had massive withdraw and all seems to processed, and CZ the CEO of binance just said this situation like this is needed for an exchange is just like a stress test.

and also said the withdraw recently is not top 1. last time I checked binance withdraw is around 2$ billion in 24 hour Shocked

. Impressive but still if you guys want to long term hold better to keep it in hardware wallet

It is impossible to know how long binance will be in the market, but with what they have been doing, they really have a reputation in the market. Admittedly, it is no coincidence that Binance is a latecomer to climb to the position of the world's No. 1 exchange, what they are doing is well deserved.
The numbers that I found, the amount of withdrawal from Binance is up to 6 billion dollars, a very large number, but everything went extremely smoothly without anyone having any problems. In my opinion, this is a real test of Binance's prowess.

bittraffic

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Quote from: BenCodie on December 18, 2022, 04:05:36 AM

People should not be scared or worried about Binance's reserves. I think there is no doubt that they have what they claim. Maybe even more than what is disclosed.

What people should worry/research about is how much power they are consolidating, especially after FTX. We should take off the cz safu veil and remember that Binance is a for-profit company that is embedded politically in many states throughout the world, including their home, and how much effect this can potentially have on the world.

One issue that some fraudsters were talking about was the reserves of BUSD but CZ already said its reserve is in NY which is held by Paxos. I think there is true also base on the data online.

Yesterday CZ tweeted also that it's actaully better for users to withdraw their funds from exchanges. So this is really an attack on binance while the reasons are not justified and Kevin O'leary is a liar.

BenCodie

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People should not be scared or worried about Binance's reserves. I think there is no doubt that they have what they claim. Maybe even more than what is disclosed.

What people should worry/research about is how much power they are consolidating, especially after FTX. We should take off the cz safu veil and remember that Binance is a for-profit company that is embedded politically in many states throughout the world, including their home, and how much effect this can potentially have on the world.

Rikafip

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To be honest, I don't mind some FUD against Binance and other exchanges if that means people will finally stop seeing them as banks and using them to store bitcoin.

Quote from: randyshan on December 17, 2022, 08:09:22 PM

I trust Binance and Nexo.

Good for you, I guess you haven't learned much from what has happened this year. Regarding Nexo, how can you trust some centralized platform that still offers APY very similar to the one of Celsius (I just checked and they offer up to 12% on stablecoins ), which we knows was only possible due very risky moves.

pooya87

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It is a win-win situation for the FUDsters in the end.
If Binance goes down, they will jump up and down in celebration and will fill the internet with I told you so's. That will also give them legitimacy and future followers whom they can manipulate in the future for their own benefits.
If nothing happens, they will be idiots like hundreds of others who made such claims and will be forgotten until they repeat similar FUD campaign. On top of that they could create fake volatility in the market since they could actually cause some panic among some weak hands like the recent panic sell the moment price went up above $18k which coincided with an increased amount of FUD.

As long as they are getting the reaction they wish for out of the market, their FUD campaigns will keep on coming.

davis196

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Complaining about too much FUD propaganda against Bitcoin/crypto(and the crypto companies) is like complaining about the weather being too cold or too hot. We can't do anything about it(other than complaining). Grin

Yes, maybe Binance has enough reserves to handle all liabilities, but there's always the risk of an exit scam. The risk is relatively small, but I wouldn't say that I trust a guy like CZ...
We live in a bear market and the FUD/negative news will dominate the crypto world in the next 2 years(or more). Some of the FUD/negative news might be real, most of the FUD would be just lies, gossips and rumors. Strong hands will survive the hard times. Weak hands will lose.

Kakmakr

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Well, I think a lot of people saw what Binance did to FTX Exchange and they think that Binance was the reason why FTX failed and a lot of people lost money. So I will not be surprised if there are a lot of butthurt people out there for revenge ...(ex-employees of FTX Exchange or people who has lost money)

I hope I am wrong... but this is cannot be a coincidence that we suddenly see a up surge of FUD against Binance. Roll Eyes

mk4

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People had so much PTSD due to the exchange hacks and insolvencies that they are pointing fingers at whatever exchange they fancy. Especially those shitty influencers that are just randomly betting on exchange insolvencies so they can hopefully get all that clout in the end.

Despairo

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Quote from: Darker45 on December 17, 2022, 09:29:35 PM

In an unlikely event that Binance would "collapse any day now," would Bitcoin's price be severely affected? Probably, yes. And if the collapse of FTX and Binance would also mean other centralized exchanges lose people's trust and confidence and would also collapse, it will certainly shake the market. But I think it would be beneficial to Bitcoin, and whatever it fights for, in the long run. For one, the age of paper Bitcoin and IOUs might come to an end.

Binance will collapse, we just don't know when the exact date. I believe no one think FTX will collapse since many people considered FTX is a Binance killer or top 2 exchange, but right now it was proven. There's no effect between FTX bankrupt with Bitcoin price because the one who control the coins is Sam Bankman Fried, so if Bitcoin price is dropping, pretty sure he's the one who sell Bitcoin since the users don't have any way to access their coins.

People who hold their Bitcoin on the other centralized exchange doesn't directly sold their coins to fiat if they see such news, they can easily sold it by send it to their non custodial wallet.

Darker45

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I think no FUD is justified. But as Binance's CZ himself would have it:

https://twitter.com/cz_binance/status/1602590863451889665

https://twitter.com/cz_binance/status/1602905590384181248?cxt=HHwWgICytYqJ1b4sAAAA

So, I guess CZ is somehow seeing some fair justifications of FUD. After all, he started some himself.

In an unlikely event that Binance would "collapse any day now," would Bitcoin's price be severely affected? Probably, yes. And if the collapse of FTX and Binance would also mean other centralized exchanges lose people's trust and confidence and would also collapse, it will certainly shake the market. But I think it would be beneficial to Bitcoin, and whatever it fights for, in the long run. For one, the age of paper Bitcoin and IOUs might come to an end.

Anyway, I know this is a non-issue to many, but I find CryptoQuant's way of putting it a little odd.

https://twitter.com/cryptoquant_com/status/1603537076225335296

Kryptowerk

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Quote from: dothebeats on December 17, 2022, 06:41:57 PM

It all boils down to the most basic advice anyone can give to newbies: not your keys, not your bitcoin.

This accusation against Binance has been around for years. People are trying to reveal Binance's inability to provide assets that back their BUSD stablecoin. So far, nothing bad has happened yet, and Binance seem to grow more and more stable as time passes by and as more and more customers utilize their service. Most audits made to Binance turned out supporting the platform's claim that they can back the stablecoin that they are producing, and if that isn't enough reason to instill confidence on customers' minds, then perhaps people ought to get their funds out of the exchange if they aren't actively trading for that matter—as people should on any other exchange as well.

This!
Sure, trading requires funds on an exchange, but despite that scenario there is just no reason to leave any coins out of your own hands.

I would expect/hope the next generation of exchanges (and those around now that want to keep their market positions) to implement transparent proof-of-funds systems - which is obviously a good thing.
However, I fear this would again lead to over-confidence in people leaving their funds on exchanges again. While there is still a chance of misappropriating user funds / hacks / management error etc.
Well, let's see how this plays out, but all in all I am sceptic if big fundamental changes in crypto-exchanges and people handling their funds will be of longevity.

Topic: Too much FUD: Why FUD against Binance doesn't seem to be justified (Read 293 times)