Friday morning, Binance announced the release of its backup proof system, starting with Bitcoin. He wrote on its website: “Following our recent announcement outlining our commitment to transparency, Binance is releasing its Proof of Reserves (PoR) system, which is the next step in our effort to provide transparency around trading funds. users. The rollout of this feature will start initially with BTC, with more tokens and networks being added over the next couple of weeks.”
On the same day, Roubini tweeted, “Crypto is a corrupt gambling house where the house always and systematically runs the retail fanatics who get rekt. Over 100 million idiots rekt worldwide by a group of crypto gangsters.
Earlier this week, he tweeted, “Proof of Reserves (PoR) is the gimmick used by cryptocurrency exchanges/lending platforms to pretend their customers’ funds are safe. Because these assets are in exchange custody, they are on your balance sheet and your clients’ assets are not safe in the event of bankruptcy. These are banks NOT exchanges!
He has also retweeted posts from others, including one Saturday from Bitfinex reading, “Exchanges are trying to do so called proof of reserves to prove that they have client funds. Remember folks, proof of reserves is meaningless. Exchanges borrow from each other to showcase cryptocurrency. That’s why you see “accidental” transfers of hundreds of millions of dollars.”
“Totally Corrupt” Cryptocurrency Industry.
Roubini also called the cryptocurrency industry “totally corrupt”. talking to Abu Dhabi Finance Week on 16 November. He urged the Emiratis to oust Binance exchange founder Changpeng “CZ” Zhao—a UAE resident who has a license to operate in the country—likening him to disgraced FTX founder Sam Bankman-Fried.
“He’s banned in the UK, he’s being investigated by the US Department of Justice for money laundering… and he’s here on this stage and residing in this country,” Roubini said. “He’s a walking time bomb, he should be kicked out of the country.”
cz extension suggested earlier this month that proof-of-reserve systems could reform the cryptocurrency industry and restore confidence among investors, offering a new level of transparency that would prevent the kind of inaccurate accounting that contributed to FTX’s sudden implosion.
“That will absolutely be the focus for the next period, which is right,” he said. “We learned from our mistakes.”
Even before the FTX crash, Binance was the largest cryptocurrency exchange in the world. Now his position looks even stronger, but the collapse of FTX has cast a shadow over the entire cryptocurrency space.
Roubini has a reputation on Wall Street as a bit pessimistic. He accurately predicted the financial crisis that followed the U.S. housing market meltdown in 2007, and recently wrote The era of megathreatswhich outlines 10 major economic problems plaguing the world.
In September, he warned that the US will be hit hard by a recession in 2023 that will also wreak havoc on financial markets. “It won’t be a short, shallow recession,” she predicted. “It’s going to be severe and long and ugly.”
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