I understand where these ideas are coming from after everyone has trusted the person that has been looked up to by many and even reputable companies, a major holder and investor for his company, FTX.
Who says the human beings at Binance arent plagued by the same things that drive greed and risk driven behaviors?
This is possible but I think so far, CZ and his company have always been vocal and transparent about what is happening to their company. Say, the hacks that have happened to them. Some other exchanges won't admit that they've got weak security that turned that incident into hacking. But them, they're telling they've been hacked but with a guarantee that funds are safe through their SAFU. I'm not defending them but everyone of us must take care of the funds wherever we are depositing it which we do in centralized platforms. And IMO, this is going to be a new trend for these companies, they'll be obliged to show their proof of reserve.
Proof of reserve does not mean the reserve has intrinsic value, but it's like some entity out there decides what has value at a certain time and what doesn't. Again showing proof of what is being done with customer funds is a standardized part of the finance world for a long time now, it's in the same vein as a refrigerator turning on as a basic requirement. It's like when a game takes your USD via micro transaction and splits it into 15 different currencies to obfuscate the player into making poor allocations in resources. It's fucking intentional shit and it's the same thing FTX did to it's investors when dealing with 15 different garbage coins.
I do not intend to defend or blame anyone here, I am simply stating the fact that the crypto market is an extremely risky market and that our money can disappear at any moment. So we should be responsible for our actions, don't blame someone when they let us down. Neither Binance nor FTX force us to deposit funds in their exchange, all decisions are up to us. If we want to get x100 or x1000 profit, we should also be ready to lose everything.
In fact, binance also does not need to explain or disclose its assets to us, if you believe it, use it, if you don't believe it, protect your assets by yourself.
Right, so all of the human beings that are not smart enough to make financial decisions but do anyway because marketing reaches their eyeballs? That's why they owe it. It's not to us, or you, or me, it's to the general public.