![[SERIOUS] Binance - FUD or not? The truth](https://external-preview.redd.it/Pjc4P3p0DaRMpJgbP5AStdeo2yp2F9YvMyz1k3o6u1o.jpg?640&crop=smart&auto=webp&s=4980b78d7baf1e8ae39c423107d2a357245f2a9a "[SERIOUS] Binance - FUD or not? The truth") | It's been really back and forth on this sub for what feels like weeks now. The term "FUD" has been thrown around like it's a word to greet somebody and others predict a binance collapse or are worried about it. TL;DR: No Binance will not collapse like FTX. No, CZ did not destroy FTX. FTX destroyed FTX. Higher rates of the FED, nearly 1 year of a bear market and lower liquidity revealed the fraud. Binance has nothing to do with those shady practises. On the other hand stop throwing the term FUD at anyone that critizise Binance. Some have valid arguments and just want to help or protect others preventing people from losing money. Without critism events like LUNA, Voyager, Celsius, FTX & BlockFi could've dealt way more damage. What's up with Binance- 28th November - Binance moving large amounts of BTC around. Everyone screams "where is the proof of reserve" This topic ignited the whole drama. The Proof-of-Reserve of Binance. The proof they have enough for all users + more left to operate properly. This was the biggest concern since the illiquidity of FTX was one of the major reasons for it's collapse. While everyone was waiting for Binance response - it took some time. Within those weeks people became suspicious especially since CZ himself started tweeting a lot of what feels "random" things. It felt like they ignore the issue / problems. Binance’s bitcoin reserves are fully collateralized according to auditing firm Mazarsthis article came out and went viral posted by CZ himself. This was a huge step foreward for Binance shutting down most of the allegations around their proof of reserve & liquidity. However, it took them nearly 2 weeks and people became very suspicious already. Now they request more transparency. This time it's their liabilities : There were also some problems with the Audit of mazars but I'm getting more into the topic later people are getting worried and even more suspicious every day Old topics are brought up again : Binance cold wallet / reserve : And now it's time - another "crypto bankrun" happens. Lots of people get their crypto off Binance. The articles are going around everywhere. The stress-test is happening and peaking : will Binance be able to withhold all the withdraws?Answer: Yes they did. ~6.2BN were withdrawn - ~6.5BN were deposited. All within a single day. Balance is shrinking partly heavily : And... it diddn't collapse. To be fair - not everything was withdrawn. I believe the lowest point / maximum withdrawn point was a hit of 11% on their reserve at one point. Does this proof they can handle a 100% withdraw? No. Does this proof Binance is liquid and able to handle a stress test? Yes. Or in other words : Binance worked perfectly fine as the exchange it is supposed to be. And if everyone treats it like that it will be fine for all users. The major issue and problem people saw that Binance will collapse on a stress test has been proven as false. But Binance is massive and it would take a WAY bigger stress test to actually test their entire reserves. The recent dump in cryptoAnd again - this topic is back on the table. Why did Mazar decide to step down from the Crypto buiseness? Damage control to not hurt their reputation because they aren't able to 100% confirm the audits ? Most likely. Do they know about Binance being super shady, gambling all users funds away? No lol. Yet the effect was huge. This is not just a Binance problem - it's a general crypto problem. The news dropped and Bitcoin fell ~3% within one hour and fell nearly -6% the day ETH fell over -5% and kept bleeding nearly -10% since the announcement BNB fell over 5% as well but took a way harder hit the following hours to over -16% The fear is back and this was the last major event until today. BNB FUD or real? Most likely FUD.I genuinly diddn't want to bring up BNB because it has barely anything to do with what's going on with Binance but some might be interested. Summarized : BNB is most likely fine - it's just a overvalued based on TA. This is all trader talk & topic - nothing big or shady is going on around it. Skip this part of the thread if you don't care about BNB TA. Do I think BNB will go to $0 and collapse? No. I'm a degenerate trader that sees a potential for gains - that's it. And please treat me and everyone else about the following topic as such. This has less to do with Binance and is more a pure trading topic. BNB air pocket & disconnected price movement from BTC during the bear market BNB exploding +2500% within week start of the 2021building up a huge air pocket lots of whales use BNB as collateral and might get liquidated when it hits ~$200 BNB had a couple weeks ago 13% of the market cap of Bitcoin. This is outstanding for an alt coin ( beside ETH ). Just a comparison - the next big alt coin ( XRP ) had a market cap of ~6.9% of Bitcoin. That's nearly half of the size of BNB and after the last weeks looking at right now XRP market cap is way below half of BNB size. This is just a small summary but traders saw the potential of a short term dump in BNB and have been shorting it the last weeks / months after the FTX drama. When people were looking at Binance and the News, panic & FUD started to spread they continued to see more blood for BNB. It's all about traders money and the value of the token - not really the chain itself. ConclusionIf you read through this congratulations you managed to catch up on the most important topics but it's unfortunately only the surface. Every topic goes much deeper and I highly recommend digging deeper into the liability part if you are interested. That being said - Binance will most likely be fine. BNB has found support around $250 and is holding. Worst case scenario it might visit $200, huge whales that leveraged using BNB as collateral around $200 will get liquidated and it might fall lower towards $190. Will this affect Binance negatively? We will see. But until then it is important to understand that Binance problems is nothing like FTX, BNB right now is fine and is just being traded like any other crypto and won't have an impact on Binance without falling drastically lower. ( same as FTT fell over -25% within a few hours ) Binance and the critic around it is purely based on missing transparency and shady practises from the past - that's it. But there is no known big problem that can cause a collapse for Binance nor for crypto. But most importantly - THIS IS GOOD FOR CRYPTO. Critism is healthy and important in this industry. The recent times have been an eye opener for a lot of people withdrawing their funds and performing self custody. Treat Binance like an exchange that it is but don't hope for it to fall. Without Binance a major player will be gone and crypto will take a massive hit. Rather hope for them to proof everything is fine, show full transparency. If Binance turns out to withhold everything, proves their points, shows transparency and continous to work properly this entire topic will most likely benefit them in the long run when people will look back at this and remember they survived it. Not everything Binance does it perfect nor good. There are definetly some shady practises going on behind closed doors. But future will tell how this will all play out. For now - they won't collapse. As long as you keep your crypto off the exchange you will be save. This post is about the current sitution which can change at all time. Centralized exchanges are not your friend and CZ won't care about users losing funds when things get rough as much as any other failed big player. Thanks for reading [link] [comments] |
You can get bonuses upto $100 FREE BONUS when you:
💰 Install these recommended apps:
💲 SocialGood - 100% Crypto Back on Everyday Shopping
💲 xPortal - The DeFi For The Next Billion
💲 CryptoTab Browser - Lightweight, fast, and ready to mine!
💰 Register on these recommended exchanges:
🟡 Binance🟡 Bitfinex🟡 Bitmart🟡 Bittrex🟡 Bitget
🟡 CoinEx🟡 Crypto.com🟡 Gate.io🟡 Huobi🟡 Kucoin.
Comments