Post
Topic
Board Bitcoin Discussion
Merits 4 from 1 user
Re: Binance is spamming mempool
by
DaveF
on 16/11/2022, 19:13:15 UTC
⭐ Merited by o_e_l_e_o (4)
It's understandable that plebs like us would be more paranoid after the crash of FTX
Just want to point out I'm not paranoid about anything, because I don't store a single satoshi of my money on a centralized exchange. Every exchange in the world can go bankrupt if they want - my bitcoin will be just fine. Smiley

It's just mere coincidence that Binance consolidated their wallets.
I don't think it is. Binance started to publish their "proof of assets" bullshit last week. Then it all went silent. Perhaps they are scrambling to consolidate everything they can because right now they don't actually have proof of reserves. Or perhaps they are also having a liquidity crisis due to mass withdrawals, and are rushing to refill their withdrawal wallets. They could have done this gradually over the last several months and paid 1 sat/vbyte for it all, but instead they choose to do it all right now to do it and spend a huge amount on unnecessary fees to get it done? Not a coincidence.

It could also be because as I said earlier their coding is so bad, they don't know what they have. Lots and lots of wallets all over the place, a database out of sync with them, knowing they have 'enough' in cold storage but now they are all in a panic because they have to be sure. I know it's an old saying but never attribute malice to something if incompetence is just a likely.

"Real" financial institutions have more security and programmers working for them then binance has staff.

They have been hacked several times, had the issue on the cross chain bridge last month. And so on.

They might have the funds, they might not, they might not even know....

-Dave