[forum456]

https://forums.hardwarezone.com.sg/threa...225/page-2

https://www.straitstimes.com/business/co...ed-at-108b

[forum456]

https://sg.yahoo.com/finance/news/thirty...38635.html

[A2Z]

It shows it is so easy to bring down a crypto 'bank' - just keep selling their tokens until no eyes see, then kenna liquidity withdrawals by clients macam a bank run. There is no 'central bank' as a last resort. Next to fall will be Binance itself IF all start to withdraw their balances held in there.

[Sentinel]

It shows it is so easy to bring down a crypto 'bank' - just keep selling their tokens until no eyes see, then kenna liquidity withdrawals by clients macam a bank run. There is no 'central bank' as a last resort. Next to fall will be Binance itself IF all start to withdraw their balances held in there.

This is just as true for any regular bank

True for DBS, true for Bank of America, true for China Construction Bank

[Sentinel]

It shows it is so easy to bring down a crypto 'bank' - just keep selling their tokens until no eyes see, then kenna liquidity withdrawals by clients macam a bank run. There is no 'central bank' as a last resort. Next to fall will be Binance itself IF all start to withdraw their balances held in there.

There is no way Binance can be brought down so easily, it would be easier to bring down Coinbase

I can tell you the various reasons, but it will be too long-winded

[A2Z]

This is just as true for any regular bank

True for DBS, true for Bank of America, true for China Construction Bank

Agree for bank runs it can happen to the regulated world but there is always that Central Bank who is the lender of last resort, restoring confidence, stopping the bank run. But in the crypto world no regulated world Central Bank will step in at all. In fact it is a lesson that central bank wants to tell all that cryptos are just xxxx. So obvious Alameda Research is not a research house but a trading outfit trading its own FTT hence its balance sheet is full of FTTs h i t. When Binance found out it just unload its FTT holdings.  As to why Binance will not face a similar fate, please do tell us all here.

[Sentinel]

Agree for bank runs it can happen to the regulated world but there is always that Central Bank who is the lender of last resort, restoring confidence, stopping the bank run. But in the crypto world no regulated world Central Bank will step in at all. In fact it is a lesson that central bank wants to tell all that cryptos are just xxxx. So obvious Alameda Research is not a research house but a trading outfit trading its own FTT hence its balance sheet is full of FTTs h i t. When Binance found out it just unload its FTT holdings.  As to why Binance will not face a similar fate, please do tell us all here.

You're looking at it from a prejudicial angle

FTX is a trading platform, not a bank

Alameda is not a trading house, but an investment company, like a hedge fund or more appropriately, a venture capitalist

Now we talk about traditional bank, the purpose of any central bank is not to bail out any bank that has a bank run

For this, the government will be involved, not so much to protect any depositor, but to ensure there is no contagion and social insecurity arising

However, in both cases and more so in traditional banks, if there is a bank run, the bank will just freeze the accounts and stop withdrawal, as it is a fact that all banks are fractional, so if everyone rushes to get their money out, no bank can handle

Even in Singapore, MAS has I think only a requirement of any bank under its regulation to have 28 or 30% asset backing or collateral backing, which typically is not enough in any major bank run

For FTX specifically, it is different with Voyager, Celsius and even 3 Arrows, but all these are NOT banks!

FTX, like I said, is a trading platform, not a bank

With regards to my position of why Binance will NOT be so easily taken out, I decline to elaborate as it will take me another 5 pages to lay out the reasons

If you think Binance or any crypto cannot touch, then stay away

No one points a gun to your head to be involved

There are so many crypto trading exchanges and none of them are banks

The use of the phrase "bank run" is to make it simple for many to understand, that's all

It is a known fact that no user should leave their crypto on the exchange but to send it to their cold wallets, non-custodial wallets

Just like to however conclude with this statement about Binance vs Coinbase

Binance is at least 7 times the volume size of Coinbase and Binance trade volume is the combined total of the next 10 largest exchanges

[singaporean1964]

https://www.youtube.com/watch?v=l3HfrRjWilQ

[Sentinel]

One more thing, Binance did not offload its FTT, not in an OTC, not in the open market, I think it is reported vaguely that one of its wallets has a movement of like 20% of its FTT moved to the exchange, but sold or not, no one knows, because cannot tell

FTX fell because its parent company Alameda is valuated in major parts of its balance sheet with FTT, meaning the FTX "bank run" was because of the perceived weakness of Alameda, by people like you and me, and in the same breath, if DBS gives me any good reason to doubt its solvency, I will definitely run on the bank and in both cases, FTX or DBS, nothing, no government can stop us, but sure they can. The just need to suspend withdrawals and calm nerves

But finally, for DBS or FTX, the only real solution to a "bank run" is not restoring confidence, but raising immediate capital to mope up the exodus

[winbig]

One more thing, Binance did not offload its FTT, not in an OTC, not in the open market, I think it is reported vaguely that one of its wallets has a movement of like 20% of its FTT moved to the exchange, but sold or not, no one knows, because cannot tell

FTX fell because its parent company Alameda is valuated in major parts of its balance sheet with FTT, meaning the FTX "bank run" was because of the perceived weakness of Alameda, by people like you and me, and in the same breath, if DBS gives me any good reason to doubt its solvency, I will definitely run on the bank and in both cases, FTX or DBS, nothing, no government can stop us, but sure they can. The just need to suspend withdrawals and calm nerves

But finally, for DBS or FTX, the only real solution to a "bank run" is not restoring confidence, but raising immediate capital to mope up the exodus

Your BTC collapsing liao

[Sentinel]

Your BTC collapsing liao

Good, collapse more, buy more