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Comment by dist-epoch

15 hours ago

The insurance fund is not for covering hacks.

Binance is making so much money, covering this hack is peanuts for them.

12 comments

dist-epoch

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thechairman12  14 hours ago

Not to be too pedantic, but with some napkin math, I don't think this is true. Looking for clarification!!

I downloaded Binance's self published market data (https://data.binance.vision/), calculated spot and futures volume for the past year, and then applied their *highest fee tier* on both sides of the volume (for every $1 traded, they generate a fee on the taker and the maker. the fee rate is asymmetrical).

Spot revenue worked out to $7.6B USD, perps revenue worked out to $13.8B

This is an upper bound on the fees charged on volume. Binance also scams their users with a b-book, has DMM deals, etc.

I don't want to get into all that today.

But the final result is that they print somewhere in the range of $20B per year on fees. I guess CZ also has huge stockpiles of BTC and stuff. A 1% rise in BTC price probably means more for them than their actual fees, LOL.

All this to say, I think $5.6B significantly hurts.

See Google's stock price today. Their ads business slowed down a bit, and their stock tanked 10%. If binance was publicly traded, I imagine a similar affect would be demonstrated on their price.

yreg  15 hours ago

How much money do you think they are making? Because I really doubt this is peanuts to them.

  • throw-qqqqq  14 hours ago

    Binance has a market cap just shy of $100B, so a $5.8B sure hurts, but it’s not a showstopper I’d say.

    • grey-area  14 hours ago

      A market cap predicated on the price of bitcoin. A market cap is not funds available, it's just the valuation of the market, which is fickle.

    • gizajob  10 hours ago

      Market cap has nothing to do with free cash to absorb a $6billion loss. Money is also going to pour out of Binance now, one would imagine.

      1 reply →

    • 12_throw_away  11 hours ago

      boss: did you just send $5B of our company's liquid capital to a nigerian prince?

      me: no worries boss, our market cap is $100B

      boss (who is also the tooth fairy): oh right cool np

    • antonvs  9 hours ago

      That $100 billion is exchange holdings, i.e. customer funds, not market cap. It would be highly illegal for Binance to use any of that $100 billion to cover this loss.