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I’m sorry…4.3 BILLION dollars? And the company is not folding? Wow
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Submitted 11 months ago by Aboel3z@lemmy.world to technology@lemmy.world
Comments
JeffKerman1999@sopuli.xyz 11 months ago
noride@lemm.ee 11 months ago
Don’t worry, the house of cards will finally crumble when they are caught using customer deposits to pay this $4.3BB fine.
JeffKerman1999@sopuli.xyz 11 months ago
I mean where else would they get the money?? It’s a Ponzi scheme
magic_lobster_party@kbin.social 11 months ago
Do you think they’re keeping the customer deposits?
Mubelotix@jlai.lu 11 months ago
Funds are SAFU! Let’s take a moment to remember the author of the video, he killed himself exactly 5 years ago after the big 2018 crash
detalferous@lemm.ee 11 months ago
It’s a good time to get all of your money off binance!
dingleberry@discuss.tchncs.de 11 months ago
Companies can continue to zombie through as long as they are “valued” obscenely enough.
Decentralizr@lemmy.world 11 months ago
I never understood why you need to trade or park your decentralized currency on a centralized exchange!
magic_lobster_party@kbin.social 11 months ago
It’s mostly convenience. Most people buying cryptocurrency don’t really care about the decentralization aspect. They’re just in it for the quick buck.
Voroxpete@sh.itjust.works 11 months ago
Centralized exchanges were always inevitable, for a few basic reasons.
As soon as crypto started getting big, it ran headlong into a fundamental problem;
- The value proposition of cryptocurrencies is that one day they will be legitimate (“mass adoption is coming”); you need to get in now so that you’re a crypto millionaire when the world finally gets on board.
- Without legitimacy, they might as well be monopoly money. There’s no reason why you can’t pay for things in monopoly money if the person receiving the money is cool with it, but at some point you hit that wall around your closed “monopoly money is cool” community.
- Crypto is, fundamentally, very difficult for the average person to use. Trading one currency for another, for example, requires you to find a specific person who wants to sell exactly as much of that currency as you want to buy.
- Centralised exchanges remove a lot of the friction from this process. They have (nominally) customer support teams and other things normies expect from a place where they’re being asked to store their life savings.
- Without usability for the average idiot (not just bunch of weirdo hardcore nerds) crypto cannot get big. Without getting big crypto cannot get mass adoption. So no matter how much a bunch of elitist tech-nerds want to parrot “Not your keys”, the reality is that the entire project of making crypto meaningful was doomed to fail without centralised exchanges.
But of course, it was also doomed to fail with centralised exchanges. Because the second reason why they exist is that even after you solve the usability problems with crypto, the growth is still limited, because there really aren’t that many people who are jazzed about buying into a hypothetical currency just because someday it might be a real boy. The engine was clearly running out of steam, and the exchanges needed to come up with “staking” to make people actually want to invest. And by “invest” we of course mean “throw their money into a Ponzi scheme” (look up the actual definition of a Ponzi, then look up how staking worked on every single exchange; the intention is irrelevant, the effect is a Ponzi whether it was meant to be or not).
There’s no version of crypto that exists without centralized exchanges while still holding value outside of very limited, very niche spaces.
wafflez@lemmy.world 11 months ago
name checks out
lobut@lemmy.ca 11 months ago
Not gonna lie, CZ was a great bullshitter. I’ve seen him do interviews and he was like, it’s better at Binance. What happens if you lose the keys? What happens if you die and your partner needs access?
I thought those were good points even though they aren’t really compelling enough to me.
Don’t question me further on this though. I’m not a crypto person.
gila@lemm.ee 11 months ago
Self-custody means retail customers interacting directly on-chain. I liken it to the difference between using a bank to send money vs. operating a bank which solely manages your own assets. With the former method, you have some consumer protections and the practical impact of any error you make isn’t realised immediately. You can contact the bank to resolve the issue, and they will have the opportunity (sometimes even an obligation) to do so. For the latter method, you are not protected as a consumer. The practical impact of mistaken transactions is irreversible, and is realised immediately. For crypto in particular, the transferred value doesn’t “go” anywhere, it simply disappears.
Mubelotix@jlai.lu 11 months ago
You don’t, unless a currency of your trading pair is centralized (often dollars)
glockenspiel@programming.dev 11 months ago
Huge CEX have huge liquidity. Probably why Binance got hit with failure to follow antimony laundering practices.
Now, parking stuff there? Maybe ease. People are lazy and most are ill informed. Plus, CEX tend to offer other services such as staking or other ways to earn yield.
Yeah you could go to a DEX. but there’s a lot of risk there. A lot in CEX too but I get why some might trust them more than fly by night DEX that are one bridge attack away from insolvency.
Dozzi92@lemmy.world 11 months ago
Definitely lazy, but also fees for moving your currency. Keep it there and pay nothing, or move it for .00003btc, or gas fees, or whatever the hell else. I’m past my days of reading in random cryptos and it’s mainly because I hated needing a guide for accessing money.
helenslunch@feddit.nl 11 months ago
Yet another crypto scam? shocking
NotMyOldRedditName@lemmy.world 11 months ago
Sounds like the bulk of this isnt about any scam, it was the company not following KYC/AML laws. There was a brief note on moving money somewhere incorrectly, but not sure what the actual outcome of that was.
ayaya@lemdro.id 11 months ago
Yeah from what I’m seeing it’s not that they’re scamming their customers it looks like a compliance problem. Things like getting not proper ID and allowing illegal and/or foreign transactions.
Fades@lemmy.world 11 months ago
You know what is ACTUALLY not shocking? People like you who comment about an article they didn’t read!
helenslunch@feddit.nl 11 months ago
Is this a joke? Sounds like you didn’t read the article.
Fades@lemmy.world 11 months ago
About fucking time, fuck that guy
Kidplayer_666@lemm.ee 11 months ago
hehe
ShittyBeatlesFCPres@lemmy.world 11 months ago
I can’t believe in a post-FTX world that people leave money on crypto exchanges. Even if they aren’t just straight up stealing, there’s probably a 25% chance in any given year that a liquidity crisis at one crypto trading firm will spread and take down half the industry.
Alimentar@lemm.ee 11 months ago
Gambling is one hell of an addiction