Too much FUD: Why FUD against Binance doesn't seem to be justified

[1miau]

FUDsters on social media are out in strong force again, trying to suggest that Binance would be about to collapse any day now.  
While some criticism against centralized exchanges is definitely justified, the recent wave of FUD against Binance is not beneficial at all because it's mainly based on speculations.

Due to the public nature of Bitcoin's Blockchain, some public addresses from Binance are providing an estimated insight how much BTC is owned by Binance. Yes, real Bitcoin on the Blockchain!
CryptoQuant a company known for Blockchain-related researches has provided detailed insights: https://cryptoquant.com/dashboard/639937bbfbe454308ff04670




Since Bitcoin is a public Blockchain, Glassnode is updating all Bitcoin holdings on Bitcoin adresses associated with Binance:



Yes, we should go for "not your keys not your coins" and avoid to leave our coins on exchanges but creating unnecessary, unproven FUD, should be avoided as well.
It wouldn't be beneficial at all if Binance FUD will become our Tether FUD 2.0.

Calm down, HODL your coins on your own wallet but don't fall for such cheap and unproven FUD.  

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[franky1]

stupid media say customer balance totals 597602 on the 22nd of november

yet.. binances actual customer amount was
575,742.4228 BTC
https://www.binance.com/en/support/announcement/binance-releases-proof-of-reserves-system-0c7a786cbe8c4e108f3301385ab61e39
and binances onchain totals more then the 575k customer database balance

binance has total holdings (corp+customer) = BTC 764,327
binance has total holdings (customer) = BTC 582,485
binance customer balance = 575,742 BTC

so yea binance has more coin than customer database balance.

the reason why certain media are aiming bad news at binance. is:
a. distraction talk: avoid talking about the DCG contagion
b. dcg and bsv are enemies of binance for different reasons
c. if dcg can damage binance DCG can grab binance customers

here is the thing
DCG greyscale meant to be a trust managed by greyscale.
BUT
it has been show greyscale do not have any bitcoin funds in their management. they say their funds are secured in coinbase
but.. funny news. coinbase will not reveal the reserves proofs "due to security/business privacy reasons"

https://grayscale.com/safety-security-and-transparency/

All digital assets that underlie Grayscale’s digital asset products are custodied with Coinbase Custody.
..
  Due to security concerns, we do not make such on-chain wallet information and confirmation data publicly available through a cryptographic Proof-of-Reserve, or other advanced cryptographic accounting procedure. 

[dothebeats]

It all boils down to the most basic advice anyone can give to newbies: not your keys, not your bitcoin.

This accusation against Binance has been around for years. People are trying to reveal Binance's inability to provide assets that back their BUSD stablecoin. So far, nothing bad has happened yet, and Binance seem to grow more and more stable as time passes by and as more and more customers utilize their service. Most audits made to Binance turned out supporting the platform's claim that they can back the stablecoin that they are producing, and if that isn't enough reason to instill confidence on customers' minds, then perhaps people ought to get their funds out of the exchange if they aren't actively trading for that matter—as people should on any other exchange as well.

[1miau]

So far, nothing bad has happened yet, and Binance seem to grow more and more stable as time passes by and as more and more customers utilize their service.

That's my impression as well. Binance has been growing comparably slow, but steady and that's an important basis for a robust platform. Binance may have a BUSD which is always subject of speculations and some shady shitcoin offers, offering customers a comparably high yield but not that high that I would expect it's not legitimate.
After all, I expect Binance to learn from what hapened recently and tidy up all branches in question.
And that would be very good overally to get more robust exchanges learning from the past. 

[Fiatless]

So far, nothing bad has happened yet, and Binance seem to grow more and more stable as time passes by and as more and more customers utilize their service.

That's my impression as well. Binance has been growing comparably slow, but steady and that's an important basis for a robust platform. Binance may have a BUSD which is always subject of speculations and some shady shitcoin offers, offering customers a comparably high yield but not that high that I would expect it's not legitimate.
After all, I expect Binance to learn from what hapened recently and tidy up all branches in question.
And that would be very good overally to get more robust exchanges learning from the past. 

Compared to other exchanges Binance seems to have the best management structure. They have always tried to reduce their expenses when other exchanges are reckless in spending. When FTX and others are splashing money on celebrities and several sports outfits for promotion and endorsement, Binance was busy building customers' trust and confidence. Binance is one of the few crypto companies that never sacked any of their staff during the winter season but they even added to their workforce. Although these exchanges cannot be trusted because I might not know what is going on in the secret but compared to other exchanges Binance seems to be the best among equals. This FUD is caused by cheap speculators and some Bitcoin haters that want to destabilize the system by all means. Also, the US government's investigation of Binance is one of the catalysts of this FUD.

[randyshan]

I trust Binance and Nexo.

[dansus021]

That's my impression as well. Binance has been growing comparably slow, but steady and that's an important basis for a robust platform. Binance may have a BUSD which is always subject of speculations and some shady shitcoin offers, offering customers a comparably high yield but not that high that I would expect it's not legitimate.
After all, I expect Binance to learn from what hapened recently and tidy up all branches in question.
And that would be very good overally to get more robust exchanges learning from the past. 

Im not try to defend the binance but after the fud happened Binance had massive withdraw and all seems to processed, and CZ the CEO of binance just said this situation like this is needed for an exchange is just like a stress test.

and also said the withdraw recently is not top 1. last time I checked binance withdraw is around 2$ billion in 24 hour  . Impressive but still if you guys want to long term hold better to keep it in hardware wallet

[Z-tight]

I trust Binance and Nexo.

In a trustless network only trust yourself to write down your recovery phrase and have more than one backup for it. Do not trust Binance or Nexo with your funds, just the way people trusted ftx, Celsius, Voyager...with their funds. After trading, do not leave your funds there because you feel they are trusted, withdraw it, because if you do not know: proof of reserve is not proof of solvency.

[Kryptowerk]

It all boils down to the most basic advice anyone can give to newbies: not your keys, not your bitcoin.

This accusation against Binance has been around for years. People are trying to reveal Binance's inability to provide assets that back their BUSD stablecoin. So far, nothing bad has happened yet, and Binance seem to grow more and more stable as time passes by and as more and more customers utilize their service. Most audits made to Binance turned out supporting the platform's claim that they can back the stablecoin that they are producing, and if that isn't enough reason to instill confidence on customers' minds, then perhaps people ought to get their funds out of the exchange if they aren't actively trading for that matter—as people should on any other exchange as well.

This!
Sure, trading requires funds on an exchange, but despite that scenario there is just no reason to leave any coins out of your own hands.

I would expect/hope the next generation of exchanges (and those around now that want to keep their market positions) to implement transparent proof-of-funds systems - which is obviously a good thing.
However, I fear this would again lead to over-confidence in people leaving their funds on exchanges again. While there is still a chance of misappropriating user funds / hacks / management error etc.
Well, let's see how this plays out, but all in all I am sceptic if big fundamental changes in crypto-exchanges and people handling their funds will be of longevity.

[Darker45]

I think no FUD is justified. But as Binance's CZ himself would have it:


https://twitter.com/cz_binance/status/1602590863451889665


https://twitter.com/cz_binance/status/1602905590384181248?cxt=HHwWgICytYqJ1b4sAAAA

So, I guess CZ is somehow seeing some fair justifications of FUD. After all, he started some himself.

In an unlikely event that Binance would "collapse any day now," would Bitcoin's price be severely affected? Probably, yes. And if the collapse of FTX and Binance would also mean other centralized exchanges lose people's trust and confidence and would also collapse, it will certainly shake the market. But I think it would be beneficial to Bitcoin, and whatever it fights for, in the long run. For one, the age of paper Bitcoin and IOUs might come to an end.

Anyway, I know this is a non-issue to many, but I find CryptoQuant's way of putting it a little odd.


https://twitter.com/cryptoquant_com/status/1603537076225335296

[Despairo]

In an unlikely event that Binance would "collapse any day now," would Bitcoin's price be severely affected? Probably, yes. And if the collapse of FTX and Binance would also mean other centralized exchanges lose people's trust and confidence and would also collapse, it will certainly shake the market. But I think it would be beneficial to Bitcoin, and whatever it fights for, in the long run. For one, the age of paper Bitcoin and IOUs might come to an end.

Binance will collapse, we just don't know when the exact date. I believe no one think FTX will collapse since many people considered FTX is a Binance killer or top 2 exchange, but right now it was proven. There's no effect between FTX bankrupt with Bitcoin price because the one who control the coins is Sam Bankman Fried, so if Bitcoin price is dropping, pretty sure he's the one who sell Bitcoin since the users don't have any way to access their coins.

People who hold their Bitcoin on the other centralized exchange doesn't directly sold their coins to fiat if they see such news, they can easily sold it by send it to their non custodial wallet.

[mk4]

People had so much PTSD due to the exchange hacks and insolvencies that they are pointing fingers at whatever exchange they fancy. Especially those shitty influencers that are just randomly betting on exchange insolvencies so they can hopefully get all that clout in the end.

[Kakmakr]

Well, I think a lot of people saw what Binance did to FTX Exchange and they think that Binance was the reason why FTX failed and a lot of people lost money. So I will not be surprised if there are a lot of butthurt people out there for revenge ...(ex-employees of FTX Exchange or people who has lost money)

I hope I am wrong... but this is cannot be a coincidence that we suddenly see a up surge of FUD against Binance. 

[davis196]

Complaining about too much FUD propaganda against Bitcoin/crypto(and the crypto companies) is like complaining about the weather being too cold or too hot. We can't do anything about it(other than complaining).
Yes, maybe Binance has enough reserves to handle all liabilities, but there's always the risk of an exit scam. The risk is relatively small, but I wouldn't say that I trust a guy like CZ...
We live in a bear market and the FUD/negative news will dominate the crypto world in the next 2 years(or more). Some of the FUD/negative news might be real, most of the FUD would be just lies, gossips and rumors. Strong hands will survive the hard times. Weak hands will lose.

[pooya87]

It is a win-win situation for the FUDsters in the end.
If Binance goes down, they will jump up and down in celebration and will fill the internet with I told you so's. That will also give them legitimacy and future followers whom they can manipulate in the future for their own benefits.
If nothing happens, they will be idiots like hundreds of others who made such claims and will be forgotten until they repeat similar FUD campaign. On top of that they could create fake volatility in the market since they could actually cause some panic among some weak hands like the recent panic sell the moment price went up above $18k which coincided with an increased amount of FUD.

As long as they are getting the reaction they wish for out of the market, their FUD campaigns will keep on coming.

[Rikafip]

To be honest, I don't mind some FUD against Binance and other exchanges if that means people will finally stop seeing them as banks and using them to store bitcoin.

I trust Binance and Nexo.

Good for you, I guess you haven't learned much from what has happened this year. Regarding Nexo, how can you trust some centralized platform that still offers APY very similar to the one of Celsius (I just checked and they offer up to 12% on stablecoins ), which we knows was only possible due very risky moves.

[BenCodie]

People should not be scared or worried about Binance's reserves. I think there is no doubt that they have what they claim. Maybe even more than what is disclosed.

What people should worry/research about is how much power they are consolidating, especially after FTX. We should take off the cz safu veil and remember that Binance is a for-profit company that is embedded politically in many states throughout the world, including their home, and how much effect this can potentially have on the world.

[bittraffic]

People should not be scared or worried about Binance's reserves. I think there is no doubt that they have what they claim. Maybe even more than what is disclosed.

What people should worry/research about is how much power they are consolidating, especially after FTX. We should take off the cz safu veil and remember that Binance is a for-profit company that is embedded politically in many states throughout the world, including their home, and how much effect this can potentially have on the world.

One issue that some fraudsters were talking about was the reserves of BUSD but CZ already said its reserve is in NY which is held by Paxos. I think there is true also base on the data online.

Yesterday CZ tweeted also that it's actaully better for users to withdraw their funds from exchanges.  So this is really an attack on binance while the reasons are not justified and Kevin O'leary is a liar.

[posi]

That's my impression as well. Binance has been growing comparably slow, but steady and that's an important basis for a robust platform. Binance may have a BUSD which is always subject of speculations and some shady shitcoin offers, offering customers a comparably high yield but not that high that I would expect it's not legitimate.
After all, I expect Binance to learn from what hapened recently and tidy up all branches in question.
And that would be very good overally to get more robust exchanges learning from the past. 

Im not try to defend the binance but after the fud happened Binance had massive withdraw and all seems to processed, and CZ the CEO of binance just said this situation like this is needed for an exchange is just like a stress test.

and also said the withdraw recently is not top 1. last time I checked binance withdraw is around 2$ billion in 24 hour  . Impressive but still if you guys want to long term hold better to keep it in hardware wallet

It is impossible to know how long binance will be in the market, but with what they have been doing, they really have a reputation in the market. Admittedly, it is no coincidence that Binance is a latecomer to climb to the position of the world's No. 1 exchange, what they are doing is well deserved.
The numbers that I found, the amount of withdrawal from Binance is up to 6 billion dollars, a very large number, but everything went extremely smoothly without anyone having any problems. In my opinion, this is a real test of Binance's prowess.

[BenCodie]

People should not be scared or worried about Binance's reserves. I think there is no doubt that they have what they claim. Maybe even more than what is disclosed.

What people should worry/research about is how much power they are consolidating, especially after FTX. We should take off the cz safu veil and remember that Binance is a for-profit company that is embedded politically in many states throughout the world, including their home, and how much effect this can potentially have on the world.

One issue that some fraudsters were talking about was the reserves of BUSD but CZ already said its reserve is in NY which is held by Paxos. I think there is true also base on the data online.

Yesterday CZ tweeted also that it's actaully better for users to withdraw their funds from exchanges.  So this is really an attack on binance while the reasons are not justified and Kevin O'leary is a liar.

I don't know why you are replying to my post, what you said has almost nothing to do with what I had posted. My post was in relation to the whole topic being a diversion from what everyone should really be focusing on. How much power does Binance have and what effect will this have on the world now and in the future?

I would not call Kevin O'leary a liar either. He is a pretty intelligent person.