Discussion
1rd
Lol.
But I guess 69% reserve is still better than all banks.
Nyknyc
This is not shocking in the slightest. Shitcoiners gonna shitcoin.
If you don’t hold the keys you have an IOU to an asset that may or may not exist. Self custody will grow one rug pull at a time
I wouldn’t be surprised. And all my friends on Binance say that it will never crash, and if it did, it will take the entire market with it, so it wouldn’t matter.
I gave up on trying to help them.
And people wonder why bitcoin is stuck at thirty thousand dollars...
fud
No, It's most definitely not fud. I bet that that every single single centralized exchange is doing the same thing to one degree or another.
JUST 70%? BEARISH… BLOCKED AND REPORTED!
"Proof of Reserves" Must be demanded.
I would really like to know what that evidence is?
I think DCA is still the best, but this could really create some deep buy/stack opportunities if it is true and plays out.
You can't prove that they don't they can only prove that they do. Proof of reserves is an absolute essential requirement going forward.
I have really been thinking about this, and am leaning towards a 60% 40% allocation of my #BTC assets with 60% cold storage and 40% as cash settled future contracts or options.
Leave nothing on the exchanges!
Only 3 days to settle and then pull.
What is your reasoning on the future's contracts?
It’s simple leverage on a potentially parabolic asset. The 40% would have to cover any drops so you could ride out the margin calls so allocate for a short term deep price drop. There is no manipulation in the futures as they are “cash priced” based on the spot market.
I would argue that there is manipulation because the spot price is easily moved around and often is especially as it relates to the closing dates on futures contracts.
The problem with futures contracts is in my opinion that they suffer from an even higher level of manipulation.
Regardless, pulling your bitcoin off of any exchange is an absolute must.
No question! Exchanges are higher risk than options on futures based cash settled futures ETFs like BITO.
It's the same risk
Think about:
Mt Gox
Three Arrows
FTX
Basically not your keys, not your coin.
Futures contract clear by a well known clearing house have very little counter party risk.
Different risk. Exchanges holding coin have major risk that the coin does not exist and not coin is a hard asset.
How are futures funded? Since they don't buy bitcoin like spot, if the price rises and I and many others want to exit, how do they find the money?
1. Margin calls,
2. clearing houses ensure no counter party risk.
3. Contract standardization and risk exposure netting.
So a clearing house faces both the buyer and seller and guarantees contract performance of both parties.
Since no coins are delivered e.g. cash settled, the will not affect the fair market price directly.
4. You will hate this, but facts are facts… at a clearing house that is deemed systemically important by the cftc RISK is socialized.
No. 4 explains it. Gotcha.
Still, is there a law that prevents a company from compensating their friends and running out of funds for the rest of us?
Yes, selectively enforced. And yes our treasury, FED, SEC, CFTC, OFAC; all get away with illegal activities depending on the administrations agenda.
Also remember all those orgs are CIVIL only criminal is referred to the FBI and DOJ, and they have their own political stomach/agenda.
BUT ANY ONE OF THESE COULD CHOOSE TO MAKE AN EXAMPLE OUT OF YOU.
😬
Sir are you telling me another crypto exchange has fractionally reserved their bitcoin in order to pump their ponzi token? lol
Where did the missing binance #bitcoin go? Remember that the first sign of FTX collapse was the FTT house token for their exchange collapsing.
Go compare the charts for BNB, Binances house token, and CRO, crypto dot com's house token. Holding CRO came with a list of benefits a mile long through their credit card program. BNB only offers cheaper trades on binance. CRO dropped like every other crypto, BNB didn't. BNB is obviously price fixed.
How can they afford to price fix such a big crypto on trading fees? They can't, they steal bitcoin from everyone who holds on binance to get the funds to do it.
TLDR, Binance steals your bitcoin to prop up the price of their shitcoin. Get your bitcoin off exchanges.
They are all fraxxing. But BY FAR, easily, the most guilty one is Coinbase. When you're in bed with Wall Street, that's what you do. Binance will be fine, IMO... unless a stupidity community rug pull is done FTX way. We shall see come FTX 2.0 open when the coins stolen in the original FTX heist are going to get dumped back on us, LOL... #Bitcoin is winning. You know that when it clicks for you that virtually ALL the hacks, including Gox one = stupidity community at work...
Oh, by the way, flatlining reserves = a HUGE red flag. FTX looked EXACTLY like Coinbase does now in terms of their BTC reserves... Different values/amounts, but the flatline/heartbeat was there... The reason why the presstitutes have been throwing shit on Binance lately is only because Gensler's crackdown has caused most of the on-exchange coins leave from US/"allies" over to Asia... I'm WAY more worried about Coinbase, everybody that uses them as a custodian that I am about Binance...