#czsayscompensationisinplaceusersareprotected
I read CZ’s statement carefully. I respect what Binance is doing. Covering 6.34 billion dollars from company funds, not touching customer balances, keeping the SAFU promise this is what a responsible exchange looks like. I want to say that clearly before I ask my question.
But I want to raise something nobody in this discussion has said yet.
CZ said the key question is who bears the loss. He answered that: Binance bears the loss, users are protected.
My question is about what happened the moment the announcement was made.
The cause chain is this. Hack announced. Fear spreads. Market sells. BTC falls toward 77,000 dollars. Retail traders who had nothing to do with this hack, who did not withdraw, who did not panic sell, who just held their assets on Binance they woke up to a balance that is worth less than it was before the announcement. Not because of the hack. Because of the fear the announcement created.
CZ said users are fully covered for the hack. But are users covered for the market loss the announcement triggered?
A retail trader who held one Bitcoin before this event and holds one Bitcoin now has the same Bitcoin. But that Bitcoin is worth less today than it was on October 29. The exchange did not lose their Bitcoin. The market moved their Bitcoin.
I am not blaming Binance for announcing. They had to announce. Transparency was the right choice.
I am asking a different question. When Binance publishes its proof of reserves update by November 2 and when withdrawals reopen, will the compensation calculation for any affected user use the price at the time the theft occurred? Or will it use the lower price after the market crash that followed
CZ said it hurts but we survive. Most importantly we protect our users.
I believe him. I want to believe him completely. The answer to this one question will tell me if the protection covers the whole wound or only part of it.
I am watching. Millions of retail traders are watching.
What do you think? Should compensation be calculated at pre-hack prices? Tell me below.
I read CZ’s statement carefully. I respect what Binance is doing. Covering 6.34 billion dollars from company funds, not touching customer balances, keeping the SAFU promise this is what a responsible exchange looks like. I want to say that clearly before I ask my question.
But I want to raise something nobody in this discussion has said yet.
CZ said the key question is who bears the loss. He answered that: Binance bears the loss, users are protected.
My question is about what happened the moment the announcement was made.
The cause chain is this. Hack announced. Fear spreads. Market sells. BTC falls toward 77,000 dollars. Retail traders who had nothing to do with this hack, who did not withdraw, who did not panic sell, who just held their assets on Binance they woke up to a balance that is worth less than it was before the announcement. Not because of the hack. Because of the fear the announcement created.
CZ said users are fully covered for the hack. But are users covered for the market loss the announcement triggered?
A retail trader who held one Bitcoin before this event and holds one Bitcoin now has the same Bitcoin. But that Bitcoin is worth less today than it was on October 29. The exchange did not lose their Bitcoin. The market moved their Bitcoin.
I am not blaming Binance for announcing. They had to announce. Transparency was the right choice.
I am asking a different question. When Binance publishes its proof of reserves update by November 2 and when withdrawals reopen, will the compensation calculation for any affected user use the price at the time the theft occurred? Or will it use the lower price after the market crash that followed
CZ said it hurts but we survive. Most importantly we protect our users.
I believe him. I want to believe him completely. The answer to this one question will tell me if the protection covers the whole wound or only part of it.
I am watching. Millions of retail traders are watching.
What do you think? Should compensation be calculated at pre-hack prices? Tell me below.
