Washington Post: Why are users fighting back against the world's largest cryptocurrency exchange?

Old Yapi 2022-04-04 12:25:57 阅读数:982

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2021 year 5 month 19 Japan ,Francis Kim I think he has been a great success . The Australian entrepreneur has been involved in derivatives trading in regulated markets , He is used to the relative volatility of these markets . Now, however, , He is trying in the gold digger of Finance : Cryptocurrency futures . He only started working in a company called... A month ago Binance Trading on the cryptocurrency exchange , At that time, his capital was less than 2 Thousands of dollars , at that time The currency and The etheric fang ( The two most popular cryptocurrencies ) At an all-time high .Kim Think their prices will fall , And used a lever -- It's basically borrowing money from the exchange to take greater risks in trading . He soon found out , In the disruptive cryptocurrency trading world , One can have a correct judgment of the market , But still lose all the principal .

Kim The exchange used to place bets Binance The most striking feature is that in terms of trading volume ,Binance It's the world's largest cryptocurrency exchange , Deal with tens of billions of dollars a day on a regular basis .

Binance Allow its customers to use huge leverage -- Once as high as 125 Than 1( Now the leverage ratio of most customers has fallen to 20 Than 1, Comparable to other exchanges ). This means ordinary people or " Retail investors " You can gamble with far more chips than they actually buy . There is a lot of room to rise , But there is also a lot of room for decline . stay 125 Than 1 Under the circumstances , Every move 1%, Yours 100 The dollar bet could more than double , Or you may be destroyed in an instant .Kim Yes, it is 30 Than 1 Leverage to trade .

In mainstream financial markets , It is not allowed to provide an extreme amount of leverage to retail investors , This rule is mainly to protect inexperienced traders from it .( for example , brokerage agency Robinhood Provide loans to customers to buy shares , But far from reaching Binance The amount provided by ). that , Why? Binance And some competitive exchanges will allow such high leverage ? According to Carol, a professor of finance at the University of Sussex School of business - Alexander and other experts say , This may be because , Like some competitors ,Binance Play some roles that may constitute a conflict of interest .

As Alexander pointed out ,Binance It's not just an exchange where people can buy and sell cryptocurrencies . Some employees of the company claim that its valuation may be as high as 3000 Billion dollars , In fact, it is its own vertically integrated encryption economy , Provide cryptocurrency loans and the widest range of token options . If that's not enough ,Binance They also trade on their own exchanges . In traditional markets , This arrangement is absolutely not allowed , Because of conflicts of interest -- And the possibility of market manipulation -- It's very obvious . Imagine , The New York Stock Exchange or NASDAQ occupy different positions in the transactions it facilitates . For obvious reasons , No financial regulator will allow this .(Binance In response to a question about whether the company traded on its own platform :" Market making activities are the standard in both traditional finance and cryptocurrency ." They ensure liquidity , And directly support a healthy 、 A vibrant and efficient market , Benefit end users .")

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But for cryptocurrencies , That's how the whole market works , Especially since most of it is based on offshore jurisdictions , Operate in the gray area of law and regulation ." It's not just Binance," Alexander said . actually , All cryptocurrency exchanges occupy these different 、 Potentially conflicting roles , In traditional markets , These roles are divided into different entities ." And they are completely unregulated ," She said . Lack of government supervision , Plus conflict , With cryptocurrency becoming more and more mainstream , Publicize in all possible media , And trade in retirement portfolios , This will become a bigger problem . Even relatively savvy investors may lose everything in the risk they cannot bear under other circumstances .

This is it. Francis Kim stay Binance Put yourself at a disadvantage when building a short position in bitcoin . Whether it's luck or skill , His bet soon proved to be right . In the last year 5 The first few weeks of the month , stay 5 The first few weeks of the month , The price of bitcoin varies from each currency 58,000 The dollar fell to 40,000 dollar .5 month 19 Japan , It broke down , stay Binance The decline is even worse on the trading platform ( The price of cryptocurrency may vary slightly on different platforms , Provide arbitrage opportunities for mature traders ). When Kim On his cell phone app When watching on , The price of each bitcoin changes from... In a few minutes 38,000 The dollar fell to 30,000 dollar . As the market falls , His short position exploded , Its value ranges from 30,000 The dollar goes up to 171,000 dollar . It's time to cash in . All he has to do is click Binance A button on the app to lock in his revenue .

But the application didn't respond , He told us :" I clicked wildly , Trying to close that contract , To lock in profits . I'm in Twitter, Others have similar problems ."

The flash crash of cryptocurrency market is often accompanied by technical failure or unexplained failure , Including the inability to withdraw funds . for example ,2021 year 9 month 7 Japan , When El Salvador introduced bitcoin as a form of legal tender -- Despite social protests and designed for Salvadoran citizens to visit their tokens Chivo There are technical problems with the application -- The decline of the whole market has led some exchanges to report trading delays and other problems . Again ,Binance Users report frequent technical problems , Tesla CEO elon musk - musk A recent public criticism of the exchange , This problem makes it impossible for traders to withdraw for at least two weeks Dogecoin.(Binance A representative of said ,"Dogecoin The withdrawal problem is right Binance and DOGE It is an unlikely and unfortunate coincidence for the Internet ", And point out that " The technical problem has been solved ").

last year 5 month , On the other side of the world , In Toronto 33 Year old trader Fawaz Ahmed And Kim Have the same experience , But it comes from the other side of gambling . In the past year ,Ahmed Leverage is also used , In the wave of cryptocurrency, it has made great progress all the way , Will the original 1250 An Ethereum token becomes 3300 individual , The final value exceeds 1300 Thousands of dollars .( He said he was 2017 In about 2.5 Million dollars to start trading .)Ahmed Bet that the cryptocurrency market will continue its overall rise , Although he said he planned to reach... At Ethereum 4,100 Cash in dollars . and Kim equally ,Ahmed It is expected that there will be some fluctuations along the way , But it was not until the 5 month 19 Japan , When Ethereum plummeted along with bitcoin and other currencies ,Ahmed To realize the seriousness of their situation , He needs to close his position .

In an hour , He frantically tried to quit , But it's like Kim equally , The application does not work .Ahmed say :" I saw my position cleared ," He refers to the margin recovery that occurs when the application does not respond ." It's right in front of me ." That's it ,Ahmed The eight digit cryptocurrency wealth disappeared . He described it as " One of the worst days of my life ".

When Binance When the application resumes running after a few hours , Yes Kim and Ahmed It's too late for .Ahmed Your position has been cleared , Because the application cannot use , The price plummeted , Destroy the value he holds , And yes Kim Come on , Something more strange happened . Although his bet is right , When bitcoin reaches the lowest price of the day , His short position is worth 17.1 Thousands of dollars , But when Binance When the application returns to normal , The price has rebounded to close to its original level . Far from increasing his profits by nearly 150,000 dollar , But all evaporated .Kim I hope the market can turn in his favor again , He stuck to his original position , But when prices continue to rise , His short position was liquidated .

Binance Your response doesn't help users . However , It reveals some fundamental problems , That is, how the cryptocurrency exchange exists as a dark casino , These casinos are basically not responsible for their customers .Binance The official twitter account does not recognize the full scale of the problem , It's just that Ethereum withdraws " Temporarily suspended due to network congestion ", And then not to 90 Announce them in minutes " recovery ". Company executives Aaron Gong Tweeted a vague apology , urge " Affected users " Fill in " Derivative claim form ", The watch was later offline . then ,Gong Deleted this tweet .Binance There are no announcements on the official blog . Two months later ,Binance announce , it " Recently, I learned that several users publicly claimed to be in 5 month 19 Affected by the whole market failure on the th ," But it has conducted an investigation ," Unable to identify any relevant technical or system issues that affect their transactions ."

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however , Due to social media ,Kim and Ahmed I soon learned that they were not accidental , And strange faults like this are right Binance It's not uncommon for . stay Twitter and Reddit On , Terrible stories abound , At least one person claimed to have lost 3000 Thousands of dollars . stay Discord On , A temporary support group expanded to 700 Many people . Include Kim Some traders, including Binance Dealing with customer service personnel is fruitless , The latter provides them with a small part of the loss . according to Kim Share with Binance Screenshot of customer service representative's chat , There is a , He got a value 6 Thousands of dollars in Tether( A common stable currency ) Coupons and other 6 A $million trading line ,Binance Express , It does not discuss individual cases , but " Always willing to help any user in doubt ").

because Binance Refuse to compensate them ,Discord The group began planning to file a class action lawsuit , This may win relief for the majority of injured customers .Kim and Ahmed With blockchain private equity in Switzerland Liti Capital Established a connection -- Essentially , This is a litigation financing company , It issues its own cryptocurrency , And try to incorporate public decision-making into the cases they undertake .Liti Bet 500 Million dollars to support the lawsuit , The lawsuit is currently being filed by an international law firm White & Case To take the lead .Binance The user agreement requires litigious customers to accept arbitration at the Hong Kong International Arbitration Center , The minimum fee for accepting the services of courts and qualified arbitrators at the Hong Kong International Arbitration Center exceeds 5 Thousands of dollars , This is hard for traders who lose hundreds or thousands of dollars . By bringing together millionaires' day traders and ordinary claimants , And make use of Liti Capital Support for ,White & Case Around this obstacle .

(Binance Refuse to be right " Potential legal proceedings " Comment . One representative said :" When problems arise , We strive to take care of users within our ability .")

No one seems to know Binance How much money may there be in the bank .Binance No central headquarters , Even in the free and loose cryptocurrency world , There are also many things that seem strange . It's like Binance Such exchanges have helped finance " De centralization " equally , The company has also basically decentralized its workforce -- For a company that processes billions of dollars a day , This may be an unprecedented way . in name ,Binance Is headquartered in the Cayman Islands , But its employees are scattered around the world .Binance Zhao CHANGPENG, celebrity CEO of cryptocurrency (Changpeng Zhao, abbreviation CZ) adopt Twitter Act as the spokesperson of the company , At the same time, it is flying between the capital of science and technology and finance all over the world .Binance Referring to its structure, a representative of said , The company " Is a remote priority organization , So there are no traditional buildings or campuses like apple or Google ."

The company's hazy operations and lack of regulation have led to investigations in some countries , Including in the United States , As report goes , The commodity futures trading commission is investigating possible market manipulation , The Department of justice and the internal revenue service are reviewing Binance Whether to facilitate money laundering and tax evasion .2 month 15 Japan ,《 Wall Street journal 》 reports , The securities and Exchange Commission is investigating cryptocurrency trading companies and Binance The relationship between us branches .

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Binance Declined to comment on these investigations , But it says its goal is " Working with regulators , And share information with them upon request ". One representative said , The company " We have always welcomed the increasing involvement of regulators and governments in the field of cryptocurrencies . We believe that regulation and compliance are necessary for the development of the industry . We are committed to obtaining adequate licensing and regulation around the world , We recently obtained licenses for virtual asset service providers in Bahrain and Dubai ."

Binance The best defense may be the alleged technical incompetence -- Maybe the network congestion caused the company's application to fail .5 month 19 What actually happened on the th is still a mystery . But like Alexander and data scientists 、 Former professional poker player Matt - People like Langer put forward , The platform's problems may go beyond simple technical failures . In a blog post 、 Academic papers and conversations with reporters , According to their analysis ,Binance It has become a perfect place for professional trading companies to compete with immature retail traders . These companies use the most advanced algorithmic trading procedures and obtain the latest market dynamic information , Faster than the average person they compete for 、 More powerful .

Potential litigants believe that , under these circumstances , There can be no fair market . In their view ,Binance Rely on a steady stream of fools coming in , At the same time, you have to pay for the novice company .(CZ I said ,Binance It may end up losing to more flexible 、 More difficult to regulate DeFi( That is, decentralized finance ) exchange .) Now? , With it in the United States 、 Legal issues in Europe and Asia are increasing , It has thousands of alienated clients and a world-class law firm ready to use it as an example , Explain what happens when an unregulated cryptocurrency exchange is placed under a microscope .

Even though Binance A distributed company structure is adopted , But it may face significant legal risks . Its decline as the world's most important cryptocurrency exchange may be as steep as its rise . For many cryptocurrency traders , High risk is an acceptable part of the game , And the exchange or DeFi The quality of the agreement depends on the profit opportunities it provides . If Binance fall , Another unregulated trading platform may quickly take its place .

This is often called " Financial democratization " How to create a fairer economy ? Not a more chaotic economy , There is a huge gap between winners and losers . The free speech and experimental economics of cryptocurrency are very attractive , But they seem to amplify many of the worst qualities of our existing capitalist system , At the same time, a small number of early adopters and well-connected insiders enjoy privileges . Now? ,Binance Is a pioneer in this eye-catching money making industry , But perhaps its example should be taken as a warning .

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