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People start getting worried about crypto

Binance, Ponzi, FTX

International

People start getting worried about crypto

“Simple really is the whole crypto thing is a Ponzi. Fine for early people but latecomers end up holding the bag”. This is what investors are now saying about crypto corporations. Others say, “Create a token. Your buddies create a token. Everyone then lists their tokens on a crypto exchange. Token creators then buy each other’s tokens on the exchanges. ‘Value’ is established. Algorithms accelerate the fraud and values begin to rise. Naive retail investors pile in. Fake values then used to borrow and lend and collect fees. Until poof”. About Binance, people say, “If you look at what jurisdictions Binance is chartered in and has moved operations around in, that alone tells you it’s a fraud. Those jurisdictions are utilized by people and entities to avoid taxes or scrutiny and transparency. Taxes is not the motivation”.

There is series of discussions and debates centering crypto, following the collapse of FTX. Here are few of those comments or discussions:

Jenny: I am a financial ignoramus and don’t understand blockchain technology or how Bitcoin is valued, what gives it value, or what its value is? And how $32 Billion is wiped out by FTX exchange.

Seems like a speculation than value? Call me ignorant, I just don’t get it.

Brian: The Ponzi Scheme is starting to fall apart. I got out of Crypto because I didn’t want to lose everything.

Henry: There comes a time in everyone’s life when one has to admit they have no freaking idea what the heck is going on. This would include 99% of crypto customers, 99% of government employees elected, appointed and life long, 99% of the press who writes about this and not to be excluded 99% of us who read this stuff and knew ahead of time this is total Balogna, but we weren’t exactly sure why. It is now time to hire some 18 to 22-year-old computer program code writers familiar with block chain to tell us and market regulators what the heck is really going on……and I mean REALLY GOING ON.

How do you get thousands of people to risk real assets for, (per Paul Tudor Jones definition) a limited supply of nothing”?

Lucifer: Ponzi scheme. There are many Crypto dealers and promotors that should be going to prison.

Governments can and should declare Crypto to have no viable value and ban the use.

So-called mining for Crypto does more damage to the ecology & climate than fossil fuel.

“Top-down estimates of the electricity consumption of cryptocurrency mining in the United States imply that the industry was responsible for an excess 27.4 million tons of carbon dioxide (CO2) between mid-2021 and 2022 — or three times as much as emitted by the largest coal plant in the U.S. in 2021”.

Martin: There are no coins, people. Its 21 percent oxygen and 79 percent nitrogen. That’s all.

Boris: Binance CEO is the face of the scheme. Smart people see right through him and the crypto lie. His ego can’t comprehend that. Code writers are as smart as the next. A dime a dozen. Snake-oil salesman. All corrupted.

Rebecca: Where there’s smoke, there is fire. If clients are not asking for their money now, it is because they are unconscious, or because they are frightened to know the answer they might receive. Of course, the latter mindset has a rational that they don’t want to be a person who panics. Well, it may be the time to panic.

Bill: In his CNBC interview this morning, Binance CEO Changpeng “CZ” Zhao seemed surprised when Becky Quick proposed the idea of a claw-back of the US$2.1 billion of stolen funds he received from Sam Bankman-Fried. When asked how he had made his $500m investment in Twitter, he replied, “with revenues from transactions.” He did not offer any information about Binance’s cash position or make a statement about earnings.

As the run on Binance continues, Changpeng Zhao has gambled he can quiet the fears of his clients by paying out some US$4billion. The fact is there is no reward for leaving cash or tokens at Binance. Why would an investor gamble his fortune on a bet that offers no incentive?

Ralph: Binance always crashed when Bitcoin drops, I believe that it is a strategy by Changpeng He limits how much you can withdraw and you could lose it all at once any day. “CZ” Zhao is a fraud. He money launders to India, Hong Kong, Pakistan, China, Africa and USA. The Feds should investigate Binance CEO because he knows how those Call Centers who are scamming Americans are all in those nations. They use Binance to transfer cash to these Scammer Call Center owners.

Tom: So let’s see… Binance was founded in 2017 and is headquartered in the Cayman Islands. In 2020, Forbes published leaked docs showing US regulators have been unable to track US investors (Binance blocks IP addresses) and so the IRS and DOJ are investigating Binance for money laundering. Bad press. So in 2022, Binance bought a US$200 million stake in Forbes. In 2021, Binance shared client data including names and addresses, with the Russian government. In 2022, Binance is a US$500 million partner in Twitter with Musk. Zhao wants to use blockchain and cryptocurrencies in Twitter. Binance has issued its own crypto currency BNB and BUSD tokens. The BUSD is a coin pegged 1:1 to the USD, however they use Paxos for the processing and reserves whereby part is held in cash and part in US Treasuries. It all sounds like a combination of legitimacy and of suspicious activity. It could be a cleanly run company that just wants customer privacy. Or?

Nigel: He keeps freezing people’s account whenever there is a large outflow of Binance tokens. All the talk of proof of reserve is a scam. He is a big fraudster like Bankman Fried.

Alexander: SBF was charged because FTX failed. The Binance would fail because its executives would be charged. Different sequence to same outcome.

Arnold: Zhao is trying to reassure Binance clients, just like Sam Bankman-Fried also tried to reassure FTX clients.

Joseph: The house of cards is burning down and will spread like the wild fire it is. You poor souls who put your money into it deserve what you’re gonna get. Absolutely nothing. PT Barnum is laughing aloud at this point. Now go jump out a window and end your misery.

Tajul Islam

Tajul Islam is a Special Correspondent of Blitz.

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