Quote from: Huppercase on August 06, 2023, 04:13:19 PM

Quote from: DrBeer on August 06, 2023, 01:02:49 PM

The waves of problems on Binance have not subsided, as it started with Huobi ...

Unexpected news:
-Huobi top executives and TRON developers arrested in China.
-Binance has started a massive sell-off of USDT.
-USDT has been in a mild deprivation for a week now.
-Huobi's balance dropped from $700 to $90 million in a month. -The Merkle Huobi tree (a balance sheet publication introduced after the FTX crash) hasn't been updated in a month.
Steaking USDT with a 4.29% yield is the main source of the problem.

What is the essence of steaking

You buy stUSDT notes with your USDT. Justin Sun is supposed to buy US bonds with them, but as analyst Adam Cochran writes, he doesn't. Instead, investors' USDTs are deposited in the addresses of the exchange and Justin Sun's personal wallets.

He spends them to support his other projects. And in a moment, if everyone wants to withdraw their USDT, Huobi simply won't have the money to process the withdrawal.

This is also the case with ETH. Sun has turned them into stETH. Users think there are 141,000 ETH on the balance in Huobi, but no.

New cryptocrisis or just 1 less exchange on the market ?

Its becoming scarier even more with the way things are turning out on USDT and I don't know why USDT decided to give one man monopoly to play with a stable coin that is having lots of critism. At times, I get scared of how Justin Sun deposits into Binance make the news all the time, there are lot of many other institutions that makes big deposit to Binance without making a single news but Sun is always ahead and that is even bad of crypto, one man cannot control those millions, maybe its high time we take precaution with stable coins, another Do kwon might be on the pipeline.

Crytpo has been between few people and I don't find it interesting because if you remove Binance, Kraken, Coinbase, Okex from cryptocurrency, only few will be left and by this, money is only ciirculating between this circus people, but when losses happen, it affect everyone because they don't have their coins under their study, it is the exchanges that control half of the money we have in crypto, we need to cut this tie.

Absolutely agree with you, the problems and the CONSEQUENCES can be quite sad.
A blow to USDT is a blow to all stablecoins, as it can start a chain reaction that will lead to excess liquidity and lack of liquidity in bitcoin, for example, due to withdrawal of funds from stablecoins.

And the collapse of its one CRUCIAL exchange - this is an increase in the concentration of money in fewer hands owning the remaining exchanges - is an additional risk, because the growth of "available assets" will be more provoking to illegal schemes and actions. You understand perfectly well what volumes of assets are in the hands of exchanges