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My understanding is that Binance can step in as a potential savior because Binance is safe themselves and the company doesn't fear a liquidity crisis themselves

My understanding is that Binance can step in as a potential savior because Binance is safe themselves and the company doesn't fear a liquidity crisis themselves. But, their whole premise of consumer confidence is based off of SAFU[1] which seems to hold quite a bit of their own BNB coin[2]. Maybe I'm missing something but isn't Binance just insuring funds... with their own coins? (ie. what Alameda basically did with FTT tokens) 1. Couldn't Binance be subject to the same rundown FTX just experienced? / How could Binance realistically rescue FTX at all? 2. Was this offer ever serious? [1] https://academy.binance.com/en/glossary/secure-asset-fund-for-users https://academy.binance.com/en/glossary/secure-asset-fund-fo... [2] https://bscscan.com/address/0x4B16c5dE96EB2117bBE5fd171E4d203624B014aa https://bscscan.com/address/0x4B16c5dE96EB2117bBE5fd171E4d20...

kikowi 4y ago
Their premise is that they are not doing fractional reserves and actually have all user funds available at all times. SAFU is just an additional safeguard and was primarily created to compensate for hacks (it was used one time when Binance was hacked for $50M). IMO Binance has billions of their own cash reserves (not user funds), based on their activity in the last year (acquision of coinmarketcap for 0.4B, commiting $1B to boost crypto projects and companies etc.. this must be a fraction of their overall worth and in that case, $6B should also not be a huge issue, especially since they can get a lot of goodwill and millions of FTX users). Binance collects billions of dollars from fees every year and also get money from their external investments (e.g. Binance invested in FTX and sold their shares last year for $2B ($1.5B and $0.5B FTT)).
Lionga 4y ago
Your funds are SAFU, if not CZ will personally print even more BNB so he has enough funds, don't worry. Trust him bro.
- cuteboy19 4y ago
  And if there is a hack he can just turn off the chain. It's foolproof

kikowi 4y ago

Their premise is that they are not doing fractional reserves and actually have all user funds available at all times. SAFU is just an additional safeguard and was primarily created to compensate for hacks (it was used one time when Binance was hacked for $50M). IMO Binance has billions of their own cash reserves (not user funds), based on their activity in the last year (acquision of coinmarketcap for 0.4B, commiting $1B to boost crypto projects and companies etc.. this must be a fraction of their overall worth and in that case, $6B should also not be a huge issue, especially since they can get a lot of goodwill and millions of FTX users). Binance collects billions of dollars from fees every year and also get money from their external investments (e.g. Binance invested in FTX and sold their shares last year for $2B ($1.5B and $0.5B FTT)).

Lionga 4y ago

Your funds are SAFU, if not CZ will personally print even more BNB so he has enough funds, don't worry. Trust him bro.

cuteboy19 4y ago
And if there is a hack he can just turn off the chain. It's foolproof