points by dist-epoch 5 hours ago | 0 comments
The insurance fund is not for covering hacks.
Binance is making so much money, covering this hack is peanuts for them.
[–] yreg 5 hours ago
How much money do you think they are making? Because I really doubt this is peanuts to them.
[–] throw-qqqqq 4 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 4 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 46 minutes 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.
[–] 12_throw_away 1 hour 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
[–] basilgohar 2 hours ago
It really hurts when there's this much misunderstanding of market cap vs. revenue. P/E ratios exist for a reason.
[–] thatguy0900 2 hours ago
That's assuming these AI hacks stop, right? Why would they, ever?
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.