I should have brought up this topic before now but I choose to keep quiet because I believe everyone is already aware of the shady approach used by Binance to take the advantage of the situation just to increase their own benefit and I have a reason to believe CZ is the one behind it all after I read some of his promotion tweet about Binance and Trust wallet ever since the FTX issue happened.
I believe this is the CZ approach to misappropriate and also gain people's trust.
if binance(CZ) was spammng the network by respending the same coin alotment every block. then yes baaaaaadd
if he is just sweeping lots of different coin allotments and its a case of there just being say 25m users deposits to move.. then thats just bad management of not doing it progressively over time instead of rushing it all in one go
as for the FTX stuff
FTX dun goofed and defrauded people. binance just whistleblew it
yes as a business i see him taking advantage of opportunities that present themselves. but wht business doesnt
FTX caused the problem because FTX was running a broken fractional reserved business that leeched/syphoned its customers funds away
yes other businesses should sweep deposits regularly into cold wallets instead of periodically
yes they should also show reserves (bitcoin addresses) clearly at all times of said cold wallets
and ultimately yes users should withdraw coins after they have done their in-exchange activities
but here is the thing. if binance was to release its customer coins as withdrawals to all users of 25m customers just once a month..
the congestion would be 3x the usual tx count for that entire month
meaining it would take 3 months for the congestion to settle
bitcoin network tx count cant cope with an exchange sweeping daily
this ends up that exchanges can only sweep once every 3 months to reduce/prevent congestion
bitcoin needs to scale to allow 100m people to even just p2p daily or just weekly without congestion
yep if you add coinbase 60m customer and binance 25m plus other popular exchanges. and one day say lets all just get coins off an exchange and just p2p it from now on.. thats 100m+ people that need to use bitcoin network regularly