It's quite dangerous for a centralized entity to monopolize crypto, from owning bandges to bullets; they want everything to come in contact with their ecosystem before crypto's actually see true success. But, Binance's recent movements is having the inverse effect, they are becoming a truly a dangerous threat to crypto entirely, this is in my opinion and sentiments.
Imagine Binance dictating which cryptos see success and which others fail, or in a different perspective; how people view success and failures through the lens of being affiliated or blessed by Binance, that's the direction we're headed in and how they want us to perceive what Binance brand actually means. They've done a lot of good for crypto as a whole since they were founded, but CZ is trying to expand and monopolize everything, for: power, money and what's probably most important to him, his fame and reputation.
I suggest the community start being critical about these power-house exchanges, especially Bianance since they are the largest by a mile (discounting all fake-exchanges). IEOs are a small indicator towards the centralization of power, giving the big guys the authority to dictate which coins you should be investing in. Crypto was not founded by someone telling you which coins you should invest or not invest in, it's always been a cycle of growth and maturing.
There are ultimately many repercussions that will be seen, for what's occurring right now. They will not been seen in the short-term, but will have lasting implications for crypto as a whole.
Again, Binance has done a great deal of good for crypto, a worthy topic in its own with: more capital, exposure, legitimacy...etc, the list is bigger than their biggest fault. But their biggest faults are treading into a major contradiction to crypto.
There's no denying, Binance is appearing to be the main monopoly of crypto, a true centralized powerhouse. If there is one takeaway here, centralization is the single most dangerous idea or action to the very nature of all cryptocurrencies.
2019The BitcoinSV Dilemma: For more detailed explanation
https://bitcointalksearch.org/topic/m.50745817Binance Hacked, Power plays: CZ Believes he can dictate the Bitcoin miners and blockchain.
https://www.coindesk.com/binance-may-consider-bitcoin-rollback-following-40-million-hack2020The Steemit Takeover by Justin: https://www.coindesk.com/trons-takeover-of-steemit-is-internet-history-repeating-itselfMore about Steemit: https://bitcointalksearch.org/topic/m.53952652Binance's Acquisition of CMC: Binance Continues to make headway towards total crypto dominance:
https://blog.coinmarketcap.com/2020/04/02/a-letter-to-our-users-post-acquisition/I think this is a good time to bump this thread and the OP deserves some credits. It's not good to give too much to one hand. It's bad for crypto.
Obviously this thread is outdated in the respective dates and timelines mentioned, but in terms of the core concepts and ideas this thread is more relevant than ever. CZ is an intelligent individual and Binance has done a world of good for crypto as a whole. In the end it's survival of the fittest. Binance will continue to crush its competition and gain more market share. As long as user's feel safe* and continue to profit from Binance.
Coinbase is shackled by regulations in the U.S. to make any significant grounds. But where Coinbase ultimately lacks is on the international stage, the territories were Binance has claimed supremacy over all other CEX's. Binance is bounded by almost no country (due to being shielded by subsidiaries that are not linked to the core Binance company) and their pockets are deeper than any other business currently operating in this space.
Is a monopoly in crypto a good thing? No monopoly is good due to a stagnation in innovation. But the general sentiment is that user's don't really care about the core philosophy behind blockchain and cryptocurrencies as much as they used to. So having a monopoly isn't seen as a bad thing currently, but will become a bigger problem years down the line. Governments are also a big pressure on this front in terms of regulation. Although, that's an entirely different topic. I will say most of Binance's success has come from not obeying regulations or doing the absolute bare minimum. And any company executive would do exactly the same. There's no reason for Binance to do anything but the bare minimum in each of their respective countries they are operating in. That's essentially their edge along with their trusted brand name.
Why do so many people use it?
Currently, they have quite a complete range of products that can be offered to serve their customers and a very good reputation from all centralized exchanges, besides that they hold giveaway events at certain times so that users are attracted to use the platform, and also many projects built on the Binance network so the ecosystem of the Binance network is quite complex.
I don't advertise Binance, but this is what will be a thorn in the side of decentralized development, I can't imagine if Binance will crash any time soon like FTX, the domino effect will be more than we can imagine right now.
It's safe to say that everyone will switch to DEXs, but what percentage of them still believe in Bitcoin as an investment alternative and how long will it take for the market to recover if Binance crashes?
even though we know Bitcoin is different from Altcoin it will still be very influential like FTX.
That's why Binance can be like a dog that will bite its master at any time.
