Binance has a plan to save crypto—if it’s not too late

Crypto exchanges want to prove that the market can thrive after the FTX collapse.

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[Fancy Internet Person]

So when FANCYCOIN goes "to the moon", where is the equivalent in cash reserves going to come from? Or are they expecting their customers to have wallets for FANCYCOINs and BTCs and ETHs and RANDOMPONZICOINs set up when they come for withdrawals?

Who told you about FANCYCOIN?

 

[Fancy Internet Person]

In most cryptocurrency schemes, there's no financial activity other than investors buying in and cashing out.

There's literally no way for the thing to make money.

If I invest in a mine or a retail store, there is a way for the mine or retail store to generate a profit and pay off my investment (with interest).

Crypto crap is all about inventing new take money tokens and hoping nobody looks at any of the details.

Maybe exchange fees are a small way to make a profit from facilitating illegal activity, but I would be surprised if the return on that is even OK.

 

[Fancy Internet Person]

Not sure I understand the difference between a centralized exchange and a decentralized one? Do you mean wallet services like the Coinbase Wallet?

Decentralized exchanges are implemented in smart contract things that are fairly regularly exploited or exploitable.

A fundamental issue remains that cryptocurrency-to-cryotocurrency exchange operations are not really valuable.

 

[Fancy Internet Person]

It's very uncommon that an industry with -mostly- sloppy and dishonest participants also has a few legitimate ones.

Bad participants tend to drive out good ones.

It would surprise me a lot of Binance is somehow an honest operator.

They maybe different in an important way from FTX and others. For example, they could be a front for organized crime or for government spying operations.

 

[Fancy Internet Person]

I remember attending a local "pitch night," and one of the presenters had an idea for a Web-based service index (sort of an Angie's List kind of thing).
At the very end of her presentation, she said "And we plan to use Blockchain to increase the resilience of the service."

Made no sense at all. She obviously added that, just to have the word "blockchain" in her preso.

I think that's less bad than the ones who are true believers.

 

[Fancy Internet Person]

I'm 100% with you on ¶'s one through three. ¶ four is a little iffy to me, but I bet we'll all see the real answer in the news before the end of 2023.

Four is pure speculation on my part, I do not offer any evidence and don't believe that the possibilities I listed are true.

They're the sort of possibilities that would allow a crypto company to stand out from the others and, in fact, to be run more professionally.

It's also possible that everything at Binance and the remaining big players is just above board and they have figured out a business model that their crooked competitors.