Jamie Dimon, CEO of JPMorgan Chase, speaks about Bitcoin
Jamie Dimon as you probably already know is the CEO of JPMorgan, the fifth-largest banking institution. He has long had a visceral hatred for crypto despite that JPMorgan has been buying Bitcoin and stating it has been heavily oversold in the last months.
Dimon started a recent interview by questioning why financial journalists even bother wasting their breath on covering digital assets, adding "Bitcoin itself is a hyped-up fraud, it's a pet rock."
Dimon dismisses Bitcoin as a store of value despite its immutability and fixed supply (21 million). His reason: "Maybe it's going to get to 21 million and Satoshi's picture's gonna come up and laugh at you all, and say 'na na!' And by then, Satoshi will have taken out billions of dollars."
Doesn't seem like he knows that the supply cap can only be raised if over 50% of the nodes agree. Satoshi can do whatever he wants and he can't do 💩 on his own.
The conversation also touches on the topic of FTX. Dimon said he was "not surprised at all" by the implosion of Sam Bankman-Fried's crypto empire given it was a "decentralized Ponzi scheme." We don't know what he is referring to when he said DECENTRALIZED?! It wasn't decentralized. Not even a bit!
Binance commingling funds?
The biggest worldwide crypto exchange, Binance, confirmed it failed to keep customers' funds separate from collateral for many of the tokens issued on BSC (Binance Smart Chain).
94 tokens issued on BSC by the exchange are pegged to other cryptocurrency assets. The backing of those was commingled with customers' funds in the »Binance 8« wallet.
Before that, in November Binance insisted it held all of its clients' crypto assets in segregated accounts. Know that on-chain these aren't segregated accounts but instead depend on Binance's internal accounting.
Why is this important?
The verification of adequate reserves becomes challenging because it relied on balances from user accounts and Binance cold wallets.
Until funds aren't separated users can't be 100% sure that Binance is going to honor or is even able to honor 1:1 redemption requests.