Comment Comment by Animats "Binance has said it holds more than $60bn in assets, enough to honour withdrawals. The company’s disclosures do not include its liabilities, which makes it difficult to ascertain its financial health."Possibilities:1) They're insolvent. Liabilities exceed assets. (Like FTX.)2) Their accounting is so screwed up they can't produce a balance sheet. (Like FTX).3) They have a large number of interconnected corporate entities and nobody has the big picture. (Like FTX).4) They have enough assets on the books to look solvent, but many of those assets are overvalued or internal transactions. (Like FTX).OK, crypto people. Full GAPP audit or we all assume you're broke.If you have assets in an un-audited exchange, get them out now. parent Animats 3 years ago
Possibilities:
1) They're insolvent. Liabilities exceed assets. (Like FTX.)
2) Their accounting is so screwed up they can't produce a balance sheet. (Like FTX).
3) They have a large number of interconnected corporate entities and nobody has the big picture. (Like FTX).
4) They have enough assets on the books to look solvent, but many of those assets are overvalued or internal transactions. (Like FTX).
OK, crypto people. Full GAPP audit or we all assume you're broke.
If you have assets in an un-audited exchange, get them out now.