SNEAK PEEK
- Binance’s admission of insufficient native BCH raises asset safety concerns.
- The discrepancy between native BCH and BSC BCH points to partial backing.
- Users were urged to withdraw assets from Binance due to asset shortfall.
In a startling revelation, leading cryptocurrency exchange Binance has admitted it lacks sufficient native Bitcoin Cash (BCH) to fulfill withdrawals. This comes as a shock, especially since Binance Smart Chain (BSC) BCH, where customers are directed to withdraw, is purportedly backed on a 1:1 ratio by native BCH on Binance.
Wait…
Binance is saying they don’t have enough native BCH to cover withdrawals…
But the BCH on BSC where they tell you to withdraw, is supposed to be backed 1:1 by native BCH on Binance…
Should be impossible for this to be out of sync…? https://t.co/HiwwtSHr8h
— Adam Cochran (adamscochran.eth) (@adamscochran) July 10, 2023
Consequently, this discrepancy appears illogical and disconcerting, stirring up apprehension in the crypto community. As per reports, Binance’s situation is far from ideal. The crypto giant is caught in a predicament reminiscent of the FTX debacle, where gaps in asset coverage became the pretext for troubled network exchanges.
Moreover, the fact that Binance should maintain total control over the assets for any Binance Pegged token makes the current predicament even more questionable. Significantly, Binance US has run out of BCH to back all their BSC Binance Pegged BCH.
However, this predicament has led to an unexpected move. Binance has swiftly added a BCH/TUSD trading pair with zero fees, encouraging users to deposit BCH. As a result, this move helps continue operations despite the shortage, creating a resemblance to the infamous “Ponzi” scheme, further exacerbating the situation.
fuck.
Binance US runs out of BCH to back all their BSC Binance Pegged BCH.
So what do they do?
Suddenly add a BCH/TUSD trading pair with zero fees, so you repost BCH and continue the ponzi, and they support that volume with Sun’s unbacked shell company coin.
Fucking told you. pic.twitter.com/8hFQkneWNP
— Adam Cochran (adamscochran.eth) (@adamscochran) July 10, 2023
Above all, it is essential to understand that Binance pegged assets on BSC appear not to be fully backed, indicating a substantial asset shortfall. In response to this situation, Binance is resorting to promotional offers, seemingly to cover their tracks.
Therefore, the message is clear: Binance users should exercise caution. With the unsettling revelations about the company’s asset management, moving assets out of Binance seems reasonable and safe. As a result, it is essential to stay vigilant in this volatile and uncertain landscape, prioritizing the security of one’s assets.
