Binance FUD Ramps up.
https://twitter.com/NeilJacobs/status/1603487546239057920
Alright, whelp, I'm officially now not 100% convinced about Binance solvency issues. When you get asked the question: "Can Binance withstand 2 Billion dollars worth of withdrawals," and you respond, "We'll let the lawyers handle it..." What? lol
The correct answer is that no amount of money being withdrawn from the platform would cause them to go insolvent. All assets backed 1:1.
So in addition to the stock market dipping recently, also the news that the company that was doing Binance's audit has frozen all their operations for all exchanges (including Binance)... which is weird and seemingly unexplained. Unsurprisingly, most are taking this as a huge red flag that something is wrong, which may or may not be the case.
Subsequently I moved to exit even more crypto off of Binance. Got my Rune out of there just fine but when I tried to do more the withdrawal emails stopped popping into my inbox. This has happened to me before but comes at a very very bad time considering these circumstances. I guess I'll have to just do a full exit ASAP assuming that's an option in the near future.
It wouldn't be the end of the world if I lost my crypto on Binance... only a couple thousand dollars, which is nothing during a bull market but times and tight in the bear market and that would certainly sting at a time like this. It's been fun playing with fire and leaving a bit of change of exchanges during all this but... I think I'm done. lol.
Bitcoin crashed from $18k
I mean I said it would. $18k is that critical level. If we would have broken through that we could start talking about the end of the bear market. Alas, it will probably take until February or March before we can discuss such matters. Too bad so sad.
Ah well I just got a flood of Binance withdrawal emails... so I guess doomsday has not arrived. Still, I guess I'll make the full exit anyway. If I just dump everyone on Binance I can pay bills for perhaps 4 months. With any luck the entire bear market will have blow over by then. If 2019 is any indication, a massive run is coming this summer despite economic conditions. Crypto moves faster than any market or economy. It is known.
CZ claims that all assets are pegged to liabilities 1:1, but that's what every exchange operator says. I miss the good old days when centralized agents only went bankrupt because they got hacked, and not due to their own blatant incompetence.
Hopefully CZ just didn't understand the question because English is a second language. She did ask it in a very weird way. "Including you have 2.1 Billion dollars to give away."? "If someone came to reclaw it" "to claw that back"??? LOL who talks like that? I will admit that the look she gives him when he answers in a stupid way is priceless. The Golden Eyeroll it will henceforth be so named.
I don't need to tell anyone that if Binance did actually go insolvent (which still seems pretty unlikely) that Bitcoin would crash even lower. How low? I'm still targeting the $14k area pretty aggressively. These are rock bottom levels. We just had a 3% dip and everyone is losing their minds and volume is up x5. Even a huge institution like Binance going under can't tank the price much more, but I guarantee most speculators would assume we'd hit at least $10k. Not gonna happen.
On a positive note all my credit cards are fully paid off, which gives me a huge buffer of money that again I could probably live off of for at least 3 or 4 months. Considering that the APRs on these cards are absolutely abysmal I wouldn't want to do that, but it is an option if I feel like "going long" and not selling the bottom.
lol of course
Yeah I had a feeling this must be taken out of context... duh.
So the 2.1 Billion is in reference to Binance owing FTX money... which is obviously not the case... or maybe it might be? I assume that the amount that FTX owes Binance must be more than the other way around, which is why lawyers would be involved. It all makes sense now. The Binance FUD continues.
But that's really no excuse to hold funds on exchanges at a time like this. It's long past time to GTFO and eliminate all centralized attack vectors. Luckily most people on Hive have maneuvered these situations quite gracefully, or better yet avoided them altogether.
Conclusion
No matter what happens Bitcoin is at or very near the bottom. It's also been inspiring to see the alt market standing on its own and not bleeding market cap into Bitcoin like it did in 2018/2019.
The next crypto bull market very well may be fueled by decentralized exchanges. Regulators are moving in with overaggressive hands, and crypto will move to stop them dead in their tracks. It will be interesting to see how they react when they realize that the exchanges themselves are immune to regulations.
If one thing is certain, it's that the need to decentralize is a permanent constant within this arena. Every time we get comfortable and start trusting authority a bear market comes along and everyone gets backstabbed. Even those who don't get rugpulled like me and you still get backstabbed because the entire market gets temporarily tossed into the shitter. Next time lets try and take a bit more gains during the bull market, shall we? Easier said than done, to be sure.
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Don't bet against the law making mafia.
As long as you can check the stars and tell us when the height of the bull market is, we'll definitely try and take some money off the table.
I made some moves that I didn't want to make, but because I needed liquidity for other things, and in hindsight those moves were so well timed, because everything since has been a dogs breakfast.
Glad you've got the credit cards paid off. I'm honestly not expecting any bull moves for the first half of next year... not while the US Fed has everyone panicked.
Does this include the Binance backed wraps on BSC? That’s a lot of DeFi wiped down if they all became worthless.
We can start only using DEXs but if anyone needs to go back to Fiat will need a centralized exchange because currently we dont have a lot of local stores accepting direct crypto
We might get $14k even without Binance going down. The ice is so thin...
I want to see the Vegeta memes again
what are your thoughts on KOIN which was just listed on MEXC? Seems like they actually produced a solid mainnet. The pob consensus seems quite innovative. Also, they won't face the scalibility issues that Hive has as new accounts simply require an address which is not information that is stored on chain
Also why are the markets going down in a new moon phase? :P
I'm sure I don't know enough about Koin to give a valid opinion.
Whether or not the Binance fight is with FTX, it's better to take your assets off centralized exchanges for now.
Most people who aren't a victim of rug indeed pulls tend to be affected one way or the other because the Market often suffers a hit.
Do you really have to return to your credit card? I am asking because your "freedom from debt-slavery" is a silent motivator for me to get out of debt quickly.
Yeah, we definitely need to always remember to take profit during the bull season. But we seem to always forget this.
Credit cards and debt slavery are ironically quite disconnected from each other.
I was able to dig a $10k credit card debt hole and pay none of it back.
I was not enslaved by this debt; I simply ignored it and it went away.
Real debt slavery comes from things like Mortgage payments.
Mortgage literally means ‘dead pledge’ (IE: you promise to pay back till death).
Debt slavery also comes from simply holding USD.
If you hold USD you hold the debt, and that debt loses value over time.
So having money in the bank, something that is considered by most as a good thing because you aren't technically in debt: ends up being debt slavery.
Oh, this is an eye-opening response.
All these while I had read different meanings to your bio.
Thanks for clarifying this.
The lesson which I picked from the binance / ftx issue is that one should ensure that they do not put all their cryptos on a centralised exchange.. ..
That is tge reason I keep all my money on Hive
What’s your view on MicroStrategy? Can they raise capital and buy more BTC? What’s their capitulation price?
MicroStrategy is deep in a hole of their own making, and all they can do is wait out a storm with their pants down.
Yes. The question is at what price will they be forced to sell and exhaust collaterals? (Or seek external investors to bail them out)
I look at this constantly swirling shitshow and find myself primarily being grateful that I've very seldom had any assets on a centralized exchange for more than a few hours at a time... just enough to "wash through" transactions and exit.
I guess that's more feasible when you're a long term player, rather than an active trader.
=^..^=
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Never trust authority should be implied... but it's not enought... we have to actively substitute and delete central authorities.
I can smell too much bitterness in this post than factual information.
Your generic contrarian viewpoint issued with zero statements to back it up is... a shockingly weak argument. Thanks for playing though.
Thorchain! You read it here first. Lol
Did you see the Trust wallet integration? 🥵🤯
I tried to stay away a bit from the binance fud this week because in the end this will drive you all mad when following it the whole day. And I know there are a lot of incentives from people to buy in lower so they think it will work to fud to the max. But the thing is...if binance would to collapse, that would take a crap load of time again to recover as it is such a big player.
For now im not sure about all of it, but I will take the risk of not selling crypto now at this low point and being ready for the next run. All in dex then...hello WOO my friend
How the Binance community handled this recent FUD is commendable. I nearly lost hope in all CEXs but what Binance is currently handling the news surrounding the withdrawals gives me some hope
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Man, I wish we were at the final bottom now. Too bad we can't tell for sure. The long list of people waiting for a 10k Bitcoin are going to be disappointed and hopefully the 10k limit orders don't get filled lol.
It's rough times right now. I had a leveraged trade that was liquidated that I opened in 2018. I never thought we would get this low...
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Thank you for sharing this article and your insights on the potential solvency issues at Binance. It is definitely concerning to hear about the audit company freezing operations for all exchanges, including Binance. I agree with your decision to withdraw your assets from the platform as a precautionary measure. However, I do think it's important to keep in mind that CZ, the CEO of Binance, has stated that all assets are pegged to liabilities 1:1 and that the platform can withstand large amounts of withdrawals. It would be interesting to see more information and clarification on the situation from Binance. Regardless, it's always important to be cautious and diversify investments to minimize risk. Thank you for your analysis on the potential impact on the price of bitcoin as well.
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