Binance saying it has $6b+ is obligatory. We'll find out soon enough
replyThey have it, as long as no one tries to withdraw it
replySchrodingers assets
replyBinance is probably worth at the very least $30 bil. They can get a loan to cover withdrawals if they need to. Crypto hedge funds would love to because a binance collapse is bad for everyone who is long crypto
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replyI assume they would say it regardless
replyYeah, and anyone who had their crypto there will move elsewhere, then Binance has -12b
replyI have absolutely no insight into their financials, but yeah, their incentives point entirely to saying the funds are safe, regardless of if they actually are or not. Either they are indeed safe, and it eases panic, or Binance folds, and lying didn't matter. It's do or die for them right now.
replyBybit covered $1.5B last year, so it shouldn't be surprising that Binance, a much larger exchange, is able to cover 4x more.
replyI think people here underestimate how profitable these exchanges are.
Right, but the flipside is that a lot of people also go "look how much money they're making, they couldn't possibly go bust". Whole lotta people said that about Mt. Gox, FTX, Gemini, etc. Making a ton of money doesn't prevent you from doing dumb things with it and having no liquidity when the reaper comes.
replyIt's 1/4 of their _profit_ in 2025.
reply3 billion was frozen
replyWhat os the point of crypto if some entity can freeze it whenever they want?
replyThe point of crypto is a) idle speculation and b) the circumvention of (mostly sensible) rules and regulations.
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