December 15, 2022
As the sad facts come to light that the $30 Billion “wealth” of Sam Bankman-Fried and his FTX platform were all a mirage, and just another Ponzi scheme, attention is now turning to the other major crypto platform Binance. Is it also just another “House of Cards?”
In an effort to restore confidence in the Binance platform, its CEO Changpeng Zhao (called CZ by his followers) has released what his spokesman Patrick Hillman refers to as an “audit” of the firm’s assets, performed by the mid-sized accounting firm, Isn’t this audit firm, the same firm that use to audit Donald Trump’s tax returns and financial statements?
Reading the report obviously did not reassure many investors as they continue to withdraw Billions of dollars of assets from the platform. Questions are also being raised why it’s self created token BNB has gone from 11 cents to $661 over the past few years? And now struggles to hold at $220.
Although I am not an expert in the financial condition of this platform, I would wonder how any investor could have confidence in some unregulated entity without a fixed business address, without a board of directors, and whose chief strategy officer could not provide the name of the company’s owners.
How people, who don’t trust the U.S. Government, which has a 250 year written history of accomplishments, and failures, can trust unknown entities in business for less than 10 years, without any known rules and regulations, is beyond me.
I refer readers to the thoughts of Warren Buffett, and his partner Charles Munger, on the subject of Crypto currencies and Bitcoin, and their own investment advisors before making any decisions on the subject.
Personally, I continue to believe that Gold and Silver with a history of years as a store of value, makes more sense then Bitcoin. or the other cryptocurrencies. Of course this is not investment advice, just one observer’s opinion.
“When the tide goes out, you can see who is swimming naked” quoting Warren Buffett. And the tide is going out in the Crypto World.