The Binance Leveraged Token Scandal
Binance, Coinbase and centralized exchanges are not to be used on a daily basis

The Binance Leveraged Token Scandal

By AlucardLife | cryptoinvesting | 16 Jun 2021

First of all, this is not an 'I told you so' post. I don't wish the unethical loss of money on anyone.

But crypto isn't the place to worry about that. All of the Reddit groups trying to organize a class action lawsuit against Binance for their shady leveraged token bullshit a while back, your time would be much better spent making money. Gains in crypto are still asymmetric. By the time you get back your cash from Binance (you won't), you could have made 10X more finding new smart contract projects that can't change the leverage on you or shut down the exchange when shit gets hot.

Keep in mind Uniswap has never been as busted as Binance. So why do you use Binance to trade?

To get leverage?

Who told your stupid ass to trade on leverage? Just because something is there doesn't mean you use it! And if you want leverage, trade on Unimex or Alpha Homora or the countless other defi platforms that have been working just fine while Binance fucks you in the ass!

Recognize this entire space is in beta. The entire space. Just because some exchange wrote something down on a Terms of Service doesn't mean it has a legal obligation to your stupid ass. I don't know why you think Binance owes you anything.

I think you're also misinformed about what Binance is. Binance and all companies creating their own money are countries at this point, not companies. Because you lost a little $500, now you want to impose a regulator's definition of Binance on Binance, and Binance just doesn't have to respond the way you want. Binance keeps a structure that defies regulation, and there is really no reason for them to conform. I don't want them to. The entire purpose of the crypto space is to create structures beyond the reach of corruptible nation-states. Maybe you didn't get the memo.

For those in the cheap seats: Centralized exchanges are to be used as little as possible. The entire purpose of crypto is to eliminate middlemen. If you put a middleman in the middle of a middlemanless structure, then you put your finances in the hands of that middleman. Why do this?

Yeah, whatever, you're talking shit now. Just wait until it happens to you.

It has happened to me.

My first "investment" in crypto was a complete scam — some online casino bullshit I can't even remember the name to now. First of all, I didn't know shit about exchanges, so I ended up buying in the presale with HUGE slippage. Like 70% less coins than I should have gotten. Went to the Telegram group and the admins made fun of me for not knowing about Uniswap and different exchange rates. Then on top of that, the project never got done. They just totally scammed out.

Thinking back on that time, I was red. Embarrassed, dejected, sad. I wanted to punch those snarky Telegram admins. But I never once thought about going to get some regulator to fuckin get my little $500 back. Why? Because I knew where I was. This is crypto, man. Not being regulated is not a bug; it's a feature.

I had other lessons to learn. Fuckin got fucked on a bunch of Tron ponzi dapps. Rug pulls, MLM teams targeting the contract and fucking it up, and probably some other shit, too. Even through all that, I never thought "the regulators will save me. That's what this space needs. Fuckin regulators." WTF? Do you even know what this is?

The entire purpose of crypto is to be trustless. You trust the contracts, not people. That's the whole reason this exists. So if you spend any amount of time on a centralized entity, i.e. a middleman, you deserve what you get. Maybe you don't deserve it, but you'll get whatever that middleman wants to give you — just like in the traditional world of fiat.

I do hope everyone who lost money in the Binance debacle makes it back. I do not hope you get the money from Binance. I hope you find other projects that adhere to the trustless nature of crypto, and I hope you learn how to audit, verify and use smart contracts. That way, you'll be a part of the new economy that empowers you instead of whining to corrupted regulators to put you right back into the old economy that enslaves you.

Stop this class action lawsuit nonsense and just go find projects that work for you. Take responsibility for your own financial life or get the fuck out of crypto. The 0.01% savings account at JPMorgan is waiting.


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