Even if all users begin withdrawals, Binance will not go bankrupt: CZ

Even if all users begin withdrawals, Binance will not go bankrupt: CZ

Binance is a cryptocurrency exchange that is the largest in the world in terms of daily cryptocurrency trading volume. It was founded in 2017. It’s headquarters is in the Cayman Islands. Binance was founded by Changpeng Zhao, a developer who previously built high frequency trading software. Binance was created in China, but it quickly shifted its headquarters before the Chinese government imposed restrictions on cryptocurrency trading.

Binance was investigated for money laundering and tax evasion by the US Department of Justice and the Internal Revenue Service in 2021. In June, the UK’s Financial Conduct Authority ordered Binance to cease all regulated business in the country. Binance supplied client information, including names and addresses, with the Russian authorities in 2021.

Binance coin (BNB)

Binance has released two cryptocurrencies that it created: Binance Coin (BNB) and BinanceUSD (BUSD). BNB debuted in July 2017 as an Ethereum currency before transitioning to the Binance Smart Chain (BSC) in September 2020. BSC was eventually combined with the older Binance Chain and re-launched as the BNB chain. BNB Chain employs “Proof of Staked Authority,” a hybrid of proof of stake and proof of authority. It has 21 validators who have been approved. Binance Coin was the cryptocurrency with the third greatest market capitalization as of 2021. Binance allows its users to pay fees for BNB exchanges.

BSC works with the Ethereum virtual computer and supports smart contracts (EVM). There have been several concerns about Binance Smart Chain’s level of centralization, which has resulted in several network vulnerabilities.

Even if all users begin withdrawals, Binance will not go bankrupt: CZ

Changpeng Zhao, the CEO of Binance, concurred with the rest of the crypto-verse that the exchange had a difficult year. The market was thrown into disarray earlier this month as a result of the massive withdrawal streak. Despite assurances to the community concerning the exchange’s reserves and stability, CZ got a similar query yet again.

CZ was questioned during a recent AMA session, “If Binance users withdraw their cash at the same time, would it collapse/go bankrupt? In a nutshell, no,” said the CEO of the world’s largest bitcoin exchange. “We have more than 100 percent reserves on every currency that we hold on behalf of our users,” CZ stated, explaining how the exchange will be fully OK. So feel free to go at any moment.”

As previously stated, Binance saw a rise in withdrawals from December 12 to December 14. During this time, the exchange lost a total of $6 billion. The key cause, according to reports, was speculation over the exchange’s reserves. However, like CZ, a spokesman for Binance confirmed that user assets are backed by 1:1.

Furthermore, as seen in the accompanying data, Bitcoin outflows rose in November and December 2022. However, if Binance is forced to close, money in the Trust Wallet would be protected, according to CZ.

‘Never touch user funds,’ CZ advises his colleagues.

The FTX crisis and its subsequent ripple effect created market uncertainty. The cryptocurrency community was eager to see how Binance would handle this situation. CZ emphasized the importance of staying out of such a circumstance in the first place.

Nonetheless, CZ emphasized the need of being “transparent, open, and communicative” when handling billions of dollars in customer cash. He said that there are a few standards in business to never breach those includes never handle user monies. Keep them safe, separate, and run a healthy and sustainable company. Take no shortcuts.

CZ elaborated on the upcoming year, stating that 2022 will be a terrible year. As a result, he hopes that beneficial occurrences occur during 2023. More builders and developers will be needed to create user-friendly systems for ordinary people.

In an attack, Defrost Finance was hacked. Some believe it was a rug pull.

In an attack, Defrost Finance was hacked. Some believe it was a rug pull.

Defrost Finance’s current price was $0.001623 USD, with a 24-hour trading volume of $3,398.69 USD. Our MELT to USD pricing is updated in real time. In the last 24 hours, Defrost Finance has dropped 40.32%. CoinMarketCap currently ranks #5106, with a live market cap of not available. There is no circulating supply and a maximum supply of 100,000,000 MELT coins. If you’re wondering where to purchase Defrost Finance at the moment, the main cryptocurrency exchanges for buying Defrost Finance shares are now Hotbit, TraderJoe, and Elk Finance (Avalanche). Others are included on our cryptocurrency exchanges page.

Defrost Finance is a decentralised system that allows you to use yield-bearing Tokens or other pool tokens from Avalanche and cross-chain protocols as collateral to generate H2O, a USD-pegged cryptocurrency. Defrost Finance assists customers in increasing capital efficiency from assets held in pools or vaults. It enables customers to supply liquidity in order to obtain more yields from services such as farming, borrowing, staking, swap, and bridge support for trading convenience.

Finance Must Be Defrosted

Decentralized-finance protocol has been hacked Defrost Finance reported it was hacked on Friday, however blockchain security firm PeckShield said the attack may have been a rug pull that stole $12 million, citing “community intel,” while Certik, another security firm, said it had been unable to contact members of the team. The Defrost team stated in a Sunday Twitter thread that the first assault utilized a flash loan to syphon cash from its V2 product.

A broader assault exploited V1 using the owner key. The amount taken was not specified in the protocol, which permits leveraged trading on the Avalanche blockchain. According to Peck Shields’ study, the attacker employed a bogus collateral token in conjunction with manipulated pricing. A rug pull, also known as an exit scam, occurs when developers build and construct a liquidity pool, then withdraw the cash and leave after investors have purchased the corresponding token.

According to Defi Llama data, the overall value of money frozen on Defrost Finance has plummeted from $95 million in February to roughly $13 million in recent weeks. It was less than $93,000 on Sunday. On Sunday, it was less than $93,000. It is unusual for an attack to be a rug pull. Typically, the scheme’s crew falls silent and cannot be reached. Defrost Finance, on the other hand, publicized the assault and stated in a tweet that it is prepared to engage with the perpetrators for the restoration of the monies.

Nonetheless, an attempt to contact the corporation via Twitter was futile because direct messages were not permitted on the account. Certik tweeted on Monday that it has attempted to “call numerous members of the team but have received no answer.” According to an accompanying graphic, it validated DeFrost as an escape fraud. DeFiYield, which provides a security layer for smart contracts to help investors avoid being scammed or hacked, said it audited Defrost Finance a year ago and identified the smart contract weakness that was used in the breach.

According to Chainalysis, crypto investors lost more than $2.8 billion due to rug pulls last year. Rug pulls contributed for 37% of the overall illegal money from crypto frauds that year, which was approximately $7.7 billion. The figure for 2022 is anticipated to be higher: According to a research from blockchain risk-monitoring firm Solidus Labs, scammers deployed over 117,000 scam tokens until December 1, 41% more than in all of 2021.

ADA Underperforms SHIB, and Nansen CEO Makes Fun of Cardano Brothers

ADA Underperforms SHIB, and Nansen CEO Makes Fun of Cardano Brothers

What Is Cardano (ADA)?

Cardano (ADA) is a proof-of-stake blockchain platform which aims to bring about positive global change. The open-source initiative also aspires to “redistribute power from unaccountable systems to the periphery to individuals,” thus contributing to the creation of a more safe, transparent, and fair society.

Cardano was formed in 2017 and was named after Gerolamo Cardano, who was a 16th century Italian polymath. The native ADA token is named after Ada Lovelace, a 19th-century mathematician widely considered as the world’s first computer programmer. The ADA token is designed to enable owners to participate in the network’s operation. As a result, users who own the cryptocurrency have the ability to vote on any proposed modifications to the coin. According to the team behind the layered blockchain, there have already been several compelling use cases for its technology, which intends to facilitate modular development of decentralized apps and smart contracts.

Charles Hoskinson announced the introduction of the Alonzo hard fork in August 2021, leading the Cardano price to skyrocket, rising 116% the next month. The Cardano ‘Alonzo’ hard fork was formally implemented on September 12, 2021, providing smart contract features to the network. Over 100 smart contracts were implemented in the 24 hours following the launch.

Cardano is used by agricultural organizations to track fresh fruit from farm to fork, while other solutions created on the platform allow educational credentials to be securely saved and shops to combat counterfeit items.

What Is SHIBA INU (SHIB)?

SHIB is the “DOGECOIN KILLER,” according to the SHIBA INU website, and is featured on their own ShibaSwap, a DEX., The Shiba Inu money was produced under the alias “Ryoshi” in August 2020. Ryoshi considers himself as a nobody and inconsequential, and he believes that any attempts to uncover his identity, even if successful, will be unsatisfactory.

This meme currency swiftly grew in popularity and value as a community of investors were pulled in by the coin’s charming charm along with headlines and tweets from celebrities such as Elon Musk and Vitalik Buterin. Vitalik Buterin was long thought to be the creator of the Shiba Inu, however he contradicted this on the Lex Fridman podcast on June 5, 2021.

Shiba Inu has since piqued the curiosity of other exchanges. SHIB, Mexico’s largest cryptocurrency exchange, said in September that it will begin trading on its platform. Giottus, an Indian cryptocurrency exchange, made the same announcement. Bitstamp, Europe’s largest crypto exchange, said that Shiba Inu would be listed for trade in early 2022. Korbit, a South Korean exchange, became the first in the country to offer the SHIB coin in 2021.

ADA Underperforms SHIB, and Nansen CEO Makes Fun of Cardano Brothers

The creator and CEO of blockchain analytics company Nansen, Alex Svanevik, recently turned to Twitter to mock Cardano’s native coin.”Cardano brothers never thanked me for this,” he tweeted. Svanevik was alluding to a forecast he made in March, adding, “Last chance to sell ADA over $30B market value.” Svanevik appears to have been proven true, because ADA has had a bad year in terms of price performance. The cryptocurrency has dropped 91.67% from it’s all-time high. Furthermore, it is down 81% year to year, which is higher than the meme coin Shiba Inu (77%).

Although ADA had a short-term bump in the run-up to the Vasil hard fork in September, it has been unable to gain traction since then. Despite its poor performance, ADA remains one among the top ten largest cryptocurrencies by market capitalization, with a valuation of almost $9 billion.

Svanevik’s clairvoyance may have protected some investors from severe losses this year, but there doesn’t appear to be much reason for optimism for those who are still hanging onto their ADA coins as we approach 2023. Market sentiment is very gloomy, with the sector still reeling from the FTX collapse and the US Federal Reserve refusing to abandon its hawkish monetary policies. According to U.Today, cryptocurrency expert Bobby Lee said that the next crypto bull market cycle will not begin until 2025. Svanevik’s criticism of ADA is unsurprising given his backing for Ethereum, a key Cardano rival. The Ether cryptocurrency is 75.14% lower than its all-time high.

After FTX, Binance is the only cryptocurrency exchange at the top, raising concerns about it being “too big to fail.”

After FTX, Binance is the only cryptocurrency exchange at the top, raising concerns about it being “too big to fail.”

Concerns over Changpeng Zhao’s Binance’s hegemonic position in the cryptocurrency market have grown since Sam Bankman-utter Fried’s passing. The auditing firm Mazars Group halted work on paperwork intended to demonstrate that Binance and other cryptocurrency companies had the necessary cash reserves to handle any unanticipated increase in customer withdrawals on Friday, which raised concerns once again.

Zhao, who goes by the initials CZ, has emphasized time and time again that his exchange, Binance, doesn’t misappropriate customer funds, unlike FTX, as well as that it can handle any volume of withdrawals that come its way. As evidence that it has survived prior “crypto winters,” including a more than 80% drop in Bitcoin from to Binance has a longer track record than FTX.

Still, the past few days have been trying. The action by Mazars raises concerns about an accounting picture that many people already thought was murky. In fact, Mazars likely stopped working on “proof-of-reserves” reports because the market did not find them convincing. Critics had further fodder for another round of heckling after CZ was subjected to a barrage of questions regarding Binance’s financial stability at a televised appearance earlier in the week.

Even for those who claim to support CZ and his exchange, Binance’s dominance of the market following FTX’s demise doesn’t sit well in a sector that promotes decentralization. This week’s drop in cryptocurrency prices that was accompanied by news about CZ’s company raises more questions about whether Binance has developed into a “too big to fail” participant in the market. Unlike traditional finance, there is no one on hand to stop a failure, offer a rescue, or stop any contagion.

Mark Lurie, CEO, and co-founder of Shipyard Software, a maker of decentralized exchanges, said: “I don’t think Binance is attempting to cause difficulties, but that organization is now a risk to all of us. There are several systematic dangers whenever one player controls a sizable amount of volume.”

According to CryptoCompare, Binance has raised its market share to 52.9%, its greatest ever, and grown its share of derivatives trading to 67.2% while, Bankman-FTX Fried’s empire went into bankruptcy and the 30-year-old former billionaire traded a fancy apartment for a Bahamas jail cell.

When the subject of Binance’s dominance came up during a Senate committee hearing on FTX on Wednesday, Sen. Bill Hagerty of Tennessee warned it would be “catastrophic for the cryptocurrency sector, and it would prove catastrophic to all of the customers that use the market.”

For his part, Binance’s CZ has reaffirmed in tweets and public remarks that no client exodus will be enough to put the business under strain. This week, a surge in client withdrawal requests put that confidence to the test. The native coin of Binance, BNB, has taken a significant hit as well, falling 20% since Monday.

Despite $6 billion in net withdrawals between Monday and Wednesday, a spokeswoman for Binance said in an email on Friday that “we were able to fulfill them without breaking stride.” According to the spokesman, Binance does not invest user funds and keeps clients’ cryptocurrencies in separate accounts with 1-to-1 asset backing. The representative stated that Binance has a $1 billion emergency fund and a debt-free capital structure to protect users in dire circumstances.

CZ likes to attribute a large portion of the recent interest to the unfounded “FUD” (fear, uncertainty, and doubt) that has hounded cryptocurrency from its inception. The sky won’t likely clear for him any time soon, though.

Even if Mazars’ report on Binance’s reserves didn’t amount to a full audit and didn’t completely restore confidence, the accounting firm’s departure deprives CZ of a credible outside source to support his claims. Furthermore, in the post-FTX context, public confidence in the claims of crypto billionaires is declining more quickly than the value of their coins.

The spokesman for Binance said the exchange is looking into ways to increase transparency for users to see that their assets are on the blockchain and is looking for a different accounting firm to partner with it to demonstrate proof of its reserves. That might be challenging: The Wall Street Journal reported late on Friday that BDO was rethinking its work for cryptocurrency companies after recently endorsing the reserves of stablecoin juggernaut Tether.

Government Scrutiny for Binance

Binance might prove impervious to the kind of bank run that brought down FTX and other companies this year, but CZ continues to be subject to legal risks and government scrutiny that might escalate into existential dangers to the company.

The Internal Revenue Service and Justice Department are both looking into Binance, according to a story from Bloomberg from last year. In 2020, Chainalysis Inc., a blockchain forensics company with clients that include U.S. federal agencies, came to the conclusion that Binance was the exchange through which more funds associated with criminal activities were transferred than any other cryptocurrency exchange.

According to Reuters on Monday, which cited people familiar with the situation, disagreements among the prosecutors are preventing the DOJ investigation from being completed. According to the report, some of the case’s prosecutors want to analyze more evidence while others think the government has enough to press criminal charges against CZ and other executives of Binance. The corporate representative said on Friday that “Binance has created clear business policies to guarantee we operate globally in a regulatory compliant manner.” (CZ worked from 2002 to 2005 at Bloomberg LP, the organization that owns Bloomberg News.)

The cryptocurrency community is also closely monitoring the possibility that FTX’s bankruptcy case would lead to attempts to recoup the $2.1 billion that FTX paid to buy back Binance’s investment in Bankman-business, Fried’s much of which was paid in an FTX token whose value has since plummeted. Kevin O’Leary, a “Shark Tank” television personality who has millions of dollars in cryptocurrency from a sponsored sponsorship locked up in FTX, said to a Senate committee, “Maybe I want a Madoff clawback on those revenues.”

When asked if he was willing to repay the $2.1 billion during a CNBC interview on Thursday, CZ responded, “I think we’ll leave that to the attorneys,” which sparked a fresh round of criticism on Twitter from the crypto community. Time will tell if they were merely more false information.

Complete Details on Galaxy Digital Wins Auction to Buy GK8

Complete Details on Galaxy Digital Wins Auction to Buy GK8

What is Galaxy digital?

Investment management and financial services are provided by Galaxy Digital Holdings Ltd. Trading, asset management, investment banking, mining, and principal investments are some of the Company’s business segments. It provides services in the blockchain technology, cryptocurrency, and digital asset sectors.
The Company makes investments at all levels of the capital structure, including large and small capital cryptocurrency investments, contributions to illiquid initial coin offerings (ICO) and pre-ICOs, early- and later-stage venture capital, growth equity, private equity, and all types of secured, unsecured, and structured lending.
In the area of digital assets, it offers counterparty access. Additionally, the Company provides various investment banking services during a transaction.

Founder the Company

Mike Novogratz, a former hedge fund manager and captain of Princeton University’s undergraduate wrestling team, seems well-liked by many. He may be more well-known as a risk-taker who has amassed significant victories — and substantial losses first at Goldman, then at Fortress Investments, or possibly as a result.
His merchant bank, Galaxy Digital, which bills itself as the bridge between the crypto and institutional worlds and is wholly dedicated to cryptocurrencies and the potential of emerging blockchain technology, is now his attempt to resurrect his riches. Even if it may be a considerable success, failure still seems possible. At the very least, Galaxy had lost at least $136 million in the trade as of November.
Englebardt is a veteran media and digital investor who started managing funds for Novogratz’s family business before eventually co-founding Galaxy with Novogratz. Greg Wasserman and Englebardt co-manage the Company’s significant investments division when they were both in San Francisco for the weeklong Game Developers Conference. Englebardt was in town from New York for the event. The team makes investments using two sources of funding: its balance sheet and the $325 million EOS.io Ecosystem Fund, a joint venture with Block. one that is dedicated to funding enterprises that make use of the EOS.io blockchain technology. We enquired how Galaxy would be taxed in 2018 and how Englebardt, Novogratz, and the rest of their workforce of 75 persons will be able to provide the expected returns.

Galaxy Digital won the auction.

Galaxy Digital, a financial services company with a cryptocurrency emphasis founded by Mike Novogratz, said in a press release on Friday that it had won the auction for the self-custody platform GK8 from bankrupt cryptocurrency lender Celsius Network.
Although financial details of the transaction were kept under wraps, Galaxy spokesperson Michael Wursthorn claimed the amount was much less than what Celsius spent a year earlier. According to reports, Celsius purchased GK8 in November 2021 for $115 million. Bloomberg previously covered the Galaxy-GK8 agreement.
The purchase would help Galaxy Digital Company to increase the range of its prime brokerage services. A team of about 40 professionals of cryptographers, and blockchain technologists, will be joining the Company. According to the Company, the purchase, pending regulatory clearance, will increase Galaxy’s worldwide reach by adding a new office in Tel Aviv, Israel.
As the Company’s founder and CEO, Novogratz, remarked in the statement, “Adding GK8 to our primary offering at this critical juncture for our industry also underlines our continuous determination to take advantage of the strategic opportunities to build Galaxy sustainably.”
In July, Celsius filed for bankruptcy protection and listed some of its assets for sale due to a decline in the cryptocurrency market. Galaxy, on the other hand, abandoned its plan to spend $1.2 billion for bitcoin custody specialist BitGo.
In August, Galaxy said that BitGo had yet to submit financial accounts by July 31. In September, BitGo filed a lawsuit against Galaxy for damages after the acquisition fell through.