Is Binance's Listing Fee Justified? And Will BTC Outperform Gold? - Bits + Bips

The podcast introduces new co-hosts and delves into the Binance listing fee controversy, the lessons from a major crypto de-leveraging event, the emerging landscape of stablecoins for global payments, and the comparative investment outlook for Bitcoin versus gold and other assets.

• New co-hosts bring TradFi and crypto expertise to the podcast, signaling a renewed focus on market dynamics.

• The crypto industry must adopt robust risk management and infrastructure, learning from TradFi to prevent future de-leveraging crises.

• Stablecoins and tokenized assets are evolving rapidly, with competition and regulatory clarity shaping the future of global payments and investment vehicles.

The Bits and Bips podcast welcomes new co-hosts Austin Campbell and Chris Perkins, alongside original member Ram Alamalia, who bring deep expertise in TradFi and crypto. Discussions cover the contentious Binance listing fees, examining market-driven distribution costs versus regulatory frameworks. The episode also critically analyzes a recent large crypto de-leveraging event, highlighting design flaws in current risk management systems and the need for improved infrastructure. Furthermore, the discussion explores the future of stablecoins in global payments, including new projects like Tempo, and assesses Bitcoin's position against gold as a store of value amid current market dynamics.

Podcast Co-Host Changes

• 00:00:17 The podcast announces a new set of co-hosts, Ram Alamalia (an original member), Chris Perkins from CoinFund, and Austin Campbell from Zero-Knowledge Consulting, with Austin also taking over as moderator. The new co-hosts possess strong TradFi and crypto backgrounds, manage money, and are expected to offer sharp perspectives on crypto and macro topics. This change follows the departure of previous co-hosts, and Steve Erlich will now conduct other interviews under the Bits and Bips brand, starting with the Kraken CEO.

Binance Listing Fee Debate

• 00:03:38 Binance faced controversy over alleged exorbitant listing fees, with C.J. Hetherington claiming 8% of token supply and a $2 million security deposit. Binance's founder, CZ, dismissed the allegations as 'clout chasing.' This debate highlights the high cost of distribution for crypto projects, mirroring similar expenses in TradFi through investment bankers and exchange fees. The issue also underscores Binance's consolidated roles as broker, exchange, and custodian, a structure not permitted in the U.S. market but common internationally, leading to calls for increased competition to drive down fees.

Crypto De-Leveraging Event

• 00:15:06 A recent 'Black Friday' event saw about $20 billion in leverage positions liquidated across various crypto venues, serving as a major stress test for the system. This de-leveraging involved automatically deleveraging (ADL), which forced other participants to take losses, a mechanism Don Wilson of DRW criticized as a design flaw, not a market failure. Experts argue that traditional finance's 'risk waterfall' principles, including proper pricing, initial margin, and guarantee funds, were largely ignored, leading to a direct leap to ADL. This event highlights the need for better risk management, robust price feeds, and appropriate collateral selection in crypto derivatives.

Future of Stablecoins & Payments

• 00:30:18 Tempo, a blockchain for payments backed by Stripe, recently secured a $500 million Series A funding at a $5 billion valuation, aiming to make US dollar-backed stablecoins core infrastructure for global payments. This move is seen as part of a larger trend in stablecoin distribution, addressing a quadrillion-dollar global wire business. The long-term success of such initiatives, including single-company efforts, is questioned, with liquidity and fungibility across different stablecoins identified as key factors. The market anticipates a proliferation of stablecoins, but also a power law distribution of value, influenced by regulatory fragmentation.

Ethereum Ecosystem & Talent

• 00:39:08 The departure of Dankrad Feist from the Ethereum Foundation to join Tempo sparked debate about Ethereum's focus and commercialization challenges. While Ethereum is praised for its extraordinary accomplishments and 10-year history without downtime, its ecosystem can be difficult to navigate for new entrants. In contrast, Solana and other organizations are seen as more focused on business development and internet capital markets. Despite this, Ethereum is making changes to address its shortfalls, and its proven resiliency and long history remain significant advantages, especially for institutional adoption.

Bitcoin vs. Gold Investment

• 00:45:23 Bitcoin is considered undervalued versus gold, especially tactically, despite gold's recent 30% rally over three months. Gold's surge is attributed to geopolitical uncertainty, China's shift to gold reserves, and dollar substitution, but current prices reflect 'late momentum.' Bitcoin is viewed as a purer store of value due to its programmable and transparent supply limits, compared to gold's less certain supply. While gold is currently in a 'hot ball of money' phase, the fundamentals point to Bitcoin as a superior long-term store of value.