Forbes recently reported that Binance transferred $1.8 billion in stablecoin collateral to hedge funds without informing its clients. The collateral was meant to back customer stablecoins, including B Peg USDC, digital replicas of the dollar pegged stablecoin USDC. Forbes claimed that over $1 billion worth of tokens were uncollateralized, despite Binance’s claim that they were 100% backed. CZ, CEO of Binance, denied these allegations and criticized Forbes for intentionally misconstruing facts. However, he admitted that Binance could be more open and transparent. CZ’s ethnicity was also brought up in the article, which he deemed irrelevant.
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Introduction
In this video, Sam talks about Binance, highlighting the recent negative news surrounding the company. He also discusses news on DCG and Genesis, as well as the current state of the crypto market.
Current State of the Crypto Market
The crypto market is currently down by 1.3%, with Bitcoin trading at around $23,500. BNB, on the other hand, is up slightly. Busd’s market cap has fallen due to the US going after Paxos and Busd.
Binance’s Recent Troubles
Binance has recently been called out by Forbes for being similar to FTX. Forbes revealed that Binance had transferred $1.8 billion in stablecoin collateral to hedge funds last year, leaving over $1 billion worth of tokens uncollateralized. Binance’s claims were then called into question, as they maintained that their tokens were 100% backed. CZ, the CEO of Binance, defended his company’s reputation, emphasizing that the allegations were baseless.
Opinions on the Matter
Sam proclaims that while he thinks Binance could be more transparent, there has been an unnecessary amount of fear, uncertainty, and doubt surrounding the company. He concludes that companies acting fraudulently should not be allowed to continue operating and hopes that Binance isn’t, but it’s for the best that these concerns are being raised. He advises users to hold their crypto on self-storage to safeguard their tokens.
Conclusion
The recent negative publicity surrounding Binance may dent the company’s reputation in the short term, but it may aid users in taking necessary precautions for the safety of their tokens. It’s vital to keep up to date with reliable news sources and take the necessary steps to ensure the security of your investments in the crypto space.
