Crypto Exchanges Should Be Transparent About User Accounts: FatMan
- FatMan tweets about the need to be more transparent around the user’s trading details.
- CSO of Binance affirms that trades made are primarily algorithmic for market stability purposes.
- The FTX fiasco holds back the crypto netizen from giving the benefit of the doubt to exchanges.
Cryptocurrency enthusiast FatMan took to Twitter to put forward the notion that there needs to be more transparency around trading details on user account while responding to Patrick Hillmann, Chief Strategy Officer of Binance.
Obviously I don’t think Binance will ever straight up steal customer balances, but I think there needs to be more transparency around this facet of the businessA good first step would be publishing details on the internal accounts: what they trade, how much, their profit etc. https://t.co/iolZQBp0pi
— FatMan (@FatManTerra) March 30, 2023
In his tweet, FatMan says that he believes Binance will not, straight up, steal customer balances. However, he feels, “there needs to be more transparency around this facet of the business.”
FatMan creates such an opinion while responding to a tweet from Patrick Hillmann, Chief Strategy Officer of Binance:
Unlike other exchanges, Binance does not, nor ever has, hunted user stops or liquidation prices. Any trades made are primarily algorithmic for market stability purposes or to reduce slippage. User protection has always and still remains our top priority and we will never…
— Patrick Hillmann (@PRHillmann) March 28, 2023
In Hillmann’s tweet, he says, “Unlike other exchanges Binance does not, nor ever has, hunted user stops or liquidation prices.” He assures the public that any trades made are primarily algorithmic for market stability purposes or to reduce slippage.
Hillmann states that the huge difference between true market makers and Alameda Research is, “User protection [that] has always and still remains our [Binance’s] top priority and we [Binance] will never aggressively trade against users to their detriment.”
FatMan reacts to Hillmann’s tweet by saying that a good first step would be publishing details on the internal accounts, about what they trade, how much, what is their profit, etc.While the crypto enthusiast amicably shares the fact that he understands the profit making nature of crypto exchanges, however, he believes that requesting transparency around the user’s accounts is very reasonable.
The crypto lover quotes in his tweet, “We trade against you, but not aggressively” and, “we try to make profit, but not too much profit” is true for crypto exchanges. He says that, however, after the FTX fiasco, it is hard to give exchanges the benefit of the doubt as he asserts his take on transparency in trading details for user’s account.
To add on, FatMan offers specifics about the information preferred. He says, “Just general audited information such as pairs traded, periodic volume & profit” implying this would be enough to get an idea of how much their internal desk affects the market.”
He observes that sharing specific trades or strategies is probably not the necessary first step. However, he is of the opinion that complete opaqueness is worse than both.
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