For instance, do you think Tether is "fucked" too?
I'm not saying that Binance is doing everything great. I have no idea. But is saying that it is "fucked" reasonable to you at this time, with the current evidence at hand?
Yes, this is in fact the rationale approach to financial institutions. It is why solidly-run companies invest in audits: to demonstrate, on a regular basis, that they are solvent and stable (not fucked).
But yes, if a major financial company can't complete an independent audit to IFRS or similar standards, that's a major red flag. We know major crpyto exchanges can do it as Coinbase is audited by Deloitte's, so it's not that it's not possible.
and yes Tether falls into that category too.
Sorry about that.
I totally agree with you. I just don't agree with the use of the word "fucked". My related comment: https://news.ycombinator.com/item?id=34014786
Uh, yes!?!
> isn't saying that Binance is "fucked" a bit much at this time
Sort of. The claim is that all the signs are there. A “Binance is fucked” rhetoric may increase the bank run on them, which may fuck them.
The fact that they’re dealing with a bank run, in part out of fear that the same will happen to them as FTX, will increase the probability, all depending on how sound their business is.
If they start freezing accounts, we know we’re hitting bottom.
"Binance, the world's largest cryptocurrency exchange, paused withdrawals of the stablecoin USDC on Tuesday while it carried out a "token swap." USDC withdrawals were resumed about 8 hours after Binance first announced the pausing of withdrawals. Changpeng Zhao, CEO of Binance, tweeted on Tuesday that the exchange is seeing an increase in withdrawals of USDC."
Strategically timed 8 hour stoppages are not a sign things are going well.
Look at FTX, Celsius et al, lots of people called FUD when issues were raised there...