After a wave of concerns about liquidity As well as negative rumors, or FUDs, Binance, the world’s No. 1 crypto exchange, may be another board that could go bankrupt following the FTX financial crisis. And it turned out to be a disaster, causing great damage to the crypto industry.
Most recently, Piriya Samphantharak or Tum, a direct descendant of Uncle Chalok. relationship An investment guru and early commodity futures investor in Thailand shared his views on the situation with Binance and the crypto industry on his personal social media platform Facebook. We also need to look at what risk we are considering. If the risks you value is privacy Using an SEC licensed market is probably not a good solution. You should use dex, use ln, buy bitcoin via p2p and coinjoin only.
If the risks you value are short-term price volatility. More is better
But now we are talking about the risk of bankruptcy due to lack of liquidity. This can happen when an exchange mismanages its money. Client funds are used to mix with other funds (pooling of funds) or in case an exchange trades on margin / derivatives, there may be a problem in the liquidation machine or other parts and the money is lost in the exchange.
Over the past week, Binance has often been questioned about its liquidity and reserves, as CZ’s attack on SBF and its test of reserves have, in some ways, been seen as a show of strength as a cover. Until the latest account audit finds a mismatch problem. Thus causing people to panic withdraw money
In this case, when people withdraw money at the same time, coming out in various coins or even USD, it becomes a proof of Binance. If Binance is fully reserved, will be able to refund the customer on withdrawal without any problems. which will further emphasize the discipline And integrity of Binance in the future (and also eat free withdrawal), so this is a good opportunity for Binance.
But after a wave of withdrawals, CZ came out with a “Stop FUD” campaign instead of promoting the withdrawal itself. Therefore, there is much doubt whether CZ is afraid or not.
If Binance is not Solvent, that is, there is not enough money for the client’s deposit. When customers flock to raise money at a certain time It will cause the business to go bankrupt.
So, looking at the risks in this section keeping your money on Binance is not a good option at all. Because if you love Binance, you will withdraw your money to experience the transparency and sincerity of Binance. If you hate Binance, you will withdraw your money so that Binance is catch And if you love your money You shouldn’t put it in a third party in the first place anyway.
This time, someone said it’s safer to withdraw to Bitkub, so he answered that in this situation. It is safer because Exchange in Thailand has strict control laws. Margins / futures / options / perpetuals / cfds / derivatives trading cannot be opened and client funds must be kept separate. And also forced to keep 90% in cold storage to prevent further hacking. (Of course, including Satang Pro, and in the case of Zipmex, it can be seen that the part in Thailand is safe. But the part that the customer transferred to Singapore exploded)
The requirements make exchanges in Thailand no financial products that can compete with them. But at a time when all derivatives, all earnings programs are being challenged. It turned out to be security. But of course, Not your keys, not your coins. Self-custody is storing assets, keeping money in the wallet we create and keeping the keys ourselves properly. In fact, it is the safest way to store money in the long term. However, you should study, practice, and learn how to create and keep your private keys (seed) as secure as possible. When in doubt, we can always withdraw money for safety by keeping it ourselves first.”
However, in the post to explain the reasons mentioned above, Tum Piriya also stated a relatively interesting point of view.
“Finally, I hope people will withdraw a lot of money from Binance because if it doesn’t fail we can have a standard exchange. Regardless of what happens, it’s all good in the long run. Let’s pull back.”
Summary of the implications for considering risk In the sense of “Tum Piriya Samphantharak”
If there is volatility or instability Regardless of the market situation, however, investors should keep digital assets. in a personal digital wallet or digital asset custodian service provider authorized by the office The SEC is, of course, safer than Binance in terms of obtaining a legal business license. (Because currently, Binance does not have a digital asset business license in Thailand. and when the damage occurs The SEC was unable to take legal action against Binance, and in the past, the investors themselves suffered damage . it was not protected You must accept the risk and accept the condition of the damage that happens on your own. without any remedy) In addition, there are many digital asset business operators in Thailand. licensed And it is under the digital assets law. under the supervision of the SEC and have a variety of investment products to choose from according to your needs especially high risk investments And strict as well as restrictions on investor safety such as profits, futures, options, perpetuals, cfds, derivatives which n still limited As a result, investments cannot be opened. In addition, regulations are issued for entrepreneurs to protect and protect investors, for example, keeping the assets of customers and the company to be clearly separated. In addition to risk management entrepreneurs who must keep at least 90% of their reserves in Cold Storage to prevent cyber threats.
However, investors in digital assets consider investment risks and security when choosing to store digital assets Either in a trading board or a digital wallet, either as a software wallet or a hardware wallet. for investment security
