Binance and Tether will go to Zero

Binance and Tether will go to Zero
Photo I captured August 5, 2022. Sell everything.

Given the solvency crisis crypto exchange FTX is facing (you can read statements from FTX CEO here and Binance's CEO here, and here is good rundown too), I'd like to say a few words. I've never trusted FTX or their CEO. An exchange that also offers a token is 🚩🚩🚩. FTX has engaged in virtue signaling with their foundation work, which always gives me pause. Companies shouldn't earn respect by giving money away, they should earn it by, well, being a good company. Focus on your company and let the shareholders, employees, owners, etc. do what they want with the gains from the company. Don't give it away on their behalf to make yourself look good. Don't hire a model to be your "ESG Advisor."

Furthermore, the company that is in talks with FTX to possibly acquire them, Binance, I trust even less. They used to be based in China and now they are based in the Cayman Islands. That's a hell of a history. Their CEO Changpeng Zhao has always struck me as a panderer. I've never been a fan. Not to mention they also offer a token.

With all that, a couple predictions (my predictions can be tracked here):

Binance will go insolvent. Their CEO Changpeng Zhao will prove to be a grifter. -Twitter

Tether will go to zero. - Twitter

I've been skeptical of Β Tether since 2020, figured it's time to go on record I think it will prove to be wearing no clothes.

So which exchange do I trust? Coinbase. It's the only one that has proven to be acting in a non sketchy way over the course of its history. It is public, it's financials are clear and audited. They have never issued a token. CEO Brian Armstrong is boring, but that's a feature not a bug. Coinbase has always sought to build bridges with the regulatory apparatus because that is the best way for crypto to succeed. Their Coinbase Wallet app is incredible, they build excellent dev tools, and have always acted in a way that moves crypto forward long term. No shortcuts, no bullshit.

And yes, my thesis doesn't change. I'm still long crypto. Check out my evergreen Long Live Crypto post on why that is.

Looking to build in the crypto space or software in general? We have experience. I cofounded Fullsend, a studio helping innovative companies build best-in-class apps. Let's talk, reach out to me at dick@fullsend.io.