A few days ago, CoinGeek reported how cryptocurrency exchange Coinbase went offline during another market pullback. On Monday, Binance twice suspended all digital currency withdrawals citing a backlog as the reason.
Withdrawals were first suspended and resumed about 25 minutes later before being suspended and resumed again. What’s going on at Binance, and what does it mean for the decentralized, permissionless narrative promoted by Binance CEO Changpeng Zhao and others?
😱 Binance has suspended EVERYTHING #Bitcoins withdrawals!
— Bitcoin Archive 🗄🚀🌔 (@BTC_Archive) November 1, 2021
Binance’s sleazier conduct
As noted above, Zhao likes to portray himself as one of the darlings of the “crypto” movement. He can often be found on Twitter promoting misleading ideas about decentralization, unauthorized access to digital currencies, uncensored transactions, and more. However, closer analysis of Binance and its conduct shows that it is almost the exact opposite of what it portrays in public.
These withdrawal suspensions are a prime example of the sleazy behavior that characterizes the company. He is accused of manipulate digital currency marketshas been blocked or banned in many law-abiding countries and moved from country to country as it tries to circumvent regulations.
As it does with the main proponents of the anarcho-capitalist mindset that currently governs the digital currency markets, Binance pretends to abide by regulation, but its actions paint a very different picture. One might wonder why a company with nothing to hide is so eager to avoid opening its books to regulators and agreeing to basic customer protections.
What prompted Binance to suspend withdrawals?
Binance cited a backlog as the reason for the action, and while that may or may not be the case, it fatally exposes many of the myths surrounding the stories Binance likes to tell. How are digital currencies decentralized, permissionless, or uncensored if a company has the power to freeze all transactions for a specified period?
Could a more plausible reason for the suspension of withdrawals be a large number of clients trying to make gains on meme coins like Shiba Inu, for which Binance might not have the money on hand? Delaying withdrawals is a favorite tactic of unregulated online casinos when faced with big wins. Is Binance inspired by the offshore iGaming playbook? This is unclear, and a matter best left to investigators who are no doubt monitoring Binance and its every move.
What is clear is that Binance customers are not satisfied. Many took to Twitter and other social media platforms to call for the exchange, while others pointed to the need for token exchanges on so-called decentralized protocols that are not controlled by companies.
Everything you think you know about this industry is a lie
Events like a few temporary suspensions of withdrawals by a major digital money changer don’t seem like much in isolation, but as they add up across the board, they reveal a truth that many don’t want to acknowledge; almost everything people think they know about “crypto” is a lie.
As the shares of Binance and other exchanges like Coinbase and BitMEX have repeatedly shown, the industry is largely in the hands of self-serving criminals who balk at regulation as they milk the masses against them. -exchanging and charging them exorbitant fees to access the new financial system they claim will be more inclusive and accessible.
In its current state, the digital currency space is nothing more than an unregulated global casino, and Binance is happy to continue collecting fees to facilitate this. In a regulated environment, he would have to prove his claims of a backlog as the main reason for suspending withdrawals, but as things stand, he won’t have to and will continue to mislead newcomers and those who haven’t woken up yet. until the game.
However, despite the best efforts of special interests, this era of the Wild West is coming to an end. Powerful regulators have vowed to crack down across the world, court cases threaten to expose the lie that coins can’t be moved without private keys, and more and more people are starting to question the narratives that have been told like the tough-talking crypto. – the anarchists withdraw one after the other vis-a-vis the law.
At this time, it is impossible to prove why Binance really suspended withdrawals. However, as regulations become law in more and more countries, it will become easier to determine fact amidst fiction.
To follow The CoinGeek Crypto Crime Cartel series, which plunges into the flow of groups – one of BitMEX for Binance, bitcoin.com, Blockstream, Metamorphose, Coinbase, Ripple and
Ethereum– who co-opted the digital asset revolution and turned the industry into a minefield for naïve (and even experienced) market players.
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