Stablecoins are frozen so the hole will likely be around two billion dollars.
Binance has equity and cash flow cover this, outside the insurance fund.
They custody $150B.
FTX was larger in dollar terms and ecosystem was smaller back in a day.
Binance has equity and cash flow cover this, outside the insurance fund.
They custody $150B.
FTX was larger in dollar terms and ecosystem was smaller back in a day.
Which is why if you hold Russian bonds you are screwed.. which caused a cascading long term effect and why now all bond markets are affected. And all countries are bringing there gold home from the USA.. they now know in a total collapse of the system they need their gold in their vaults.
that being said crypto currency traders are not trading a currency but some weird version of Pokemon cards so who knows what's good or bad for them.
If a massive heist like this triggered a run on one of the largest exchanges (Binance), potentially leading to a liquidity crisis, the consequences for the ecosystem could be far worse than temporarily freezing specific addresses holding stolen stablecoins.
Not saying that's what would have happened, but it seemed like a real possibility. And I'm not saying freezing assets is good in general, but in this particular case, maybe it was the lesser evil.
I want crypto because I don't trust nation states with the leverage and dials of fiat currency. All we've done is replace government with trusting whoever made a particular stablecoin.
Permissionless crypto is the only real crypto.