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by crypt1d 1282 days ago
> Interesting. Because a lot of people think they're an exchange and use BInance as such.

...that's what I said?

> What? Someone trusted Binance to store USDC. The conversions should not have happened.

Conversions were announced timely. See https://www.binance.com/en/support/faq/what-is-busd-auto-con...

> No. Nobody is expecting that. You're the only person that mentioned it.

Its the logical conclusion of people expecting Binance to hold full USDC deposit amounts, even when most/all USDC was converted to BUSD.
1 comments
nailer 1282 days ago
Sorry I typed too quickly. People can and do expect Binance to be /custodians/.

> Conversions were announced timely.

Yes. Without consent of customers, or even any confirmation from customers that they'd read of and were aware of their coins being swapped for a different currency backed by a different organisation.

> Its the logical conclusion of people expecting Binance to hold full USDC deposit amounts

No. The logical conclusion of people expecting Binance to hold full USDC deposit amounts is a 1:1 USDC holding, not to have a second BUSD copy of every coin. This is a bizarre straw man.

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crypt1d 1282 days ago
I guess we'll have to agree to disagree then. If customers didn't want their USDC deposits converted, they shouldn't have used Binance. Its not a public service company. Same goes for your expectations of custody, they never claimed to be one.

Conversions are even announced when you go to deposit USDC:

"Please note that your USDC Deposit will be auto-converted to BUSD at a 1:1 Ratio. Please refer to announcement details. https://www.binance.com/en/support/announcement/e62f703604a9..."

I don't see how your point holds, besides "customer expected X, but got Y" - but this is because customer is misinformed, not because Binance has an obligation to store USDC 1:1 (in this case).

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nailer 1282 days ago
Nobody said Binance was a public service company. This is another bizarre straw man.

> never claimed to be one.

Binance say they are a custodian on their own website.

> customer expected X, but got Y

Yes. Misleading people for financial gain is fraud.

> this is because customer is misinformed

No customer holding USDC in Binance knew their funds would be replaced before Binance replaced their funds.

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