I think everyone needs to make the better distinction that your funds are safe with you (mostly bitcoin) anytbing else you store isn't "safer" because it's in binance or coinbase because they can still lose it or take loans against it.

CZ doesn't have to tell the truth either. If they took loans, you wouldn't know anyway. No one they're still paying a loan of too is going to come out and crash the exchange on purpose.

Quote from: Esther C on Today at 11:01:35 AM

Can someone please explain the no. 3 more in-depth please.

He seems to be meaning "don't run a crypto exchange like a bank".

If you're running an exchange in crypto you're better off having 100% of your users funds segregated and covered (especially larger dormant accounts that might come back). Whether this is what he actually does and isn't something just put on a tweet remains something we'll probably find out one day.

Most large companies have between 60-100% debt to assets and get considered more efficient because of it (somehow - probably because the biggest people buying them are the people lending to them) this is likely an unsustainable model for a crypto exchange though in comparison. Don't know what binance is going to hold their profits in now though.

I'm wondering how futures and margin started without taking on debt though as the interest paying sections came years after them.

Quote from: examplens on Today at 10:19:26 AM

Quote

Binance has never used BNB for collateral, and we have never taken on debt. .

In this case, never say never. we don't know or can be sure about this statement.

Other exchanges that have collapsed in the past didn't take on debt or lose assets, they just "got hacked"