Binance's 98% Dominance: Should We Be Worried?

Russlenat

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Quote from: dimonstration on February 20, 2023, 12:23:35 PM

Nope. Volume dominance clearly shows that Binance is the most trusted exchange right now but it doesn’t give much concerned since their founder is clearly dox and will not runaway. If ever he will runaway, There’s no way he can hide all those coin away from the public eyes.

I believe the only that concerns me is the decreasing number of interest on other exchange which might be a cause for some exchange to go under since there will be income.

Seeing the dominance of Binance is not giving me such worries. But my worries are for those new traders who will immediately trust exchanges and put their life savings on it without knowing the high risk of losing them all one day. Because as long as they are centralized exchanges, they will never be reliable to keep safe our money no matter how reputable those exchanges are.

Botnake

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Quote from: dimonstration on February 20, 2023, 12:23:35 PM

Nope. Volume dominance clearly shows that Binance is the most trusted exchange right now but it doesn’t give much concerned since their founder is clearly dox and will not runaway. If ever he will runaway, There’s no way he can hide all those coin away from the public eyes.

I believe the only that concerns me is the decreasing number of interest on other exchange which might be a cause for some exchange to go under since there will be income.

I also don’t see myself worrying about Binance because i know the fact that this number indicated here is not precise, its overrated I think. Because I have also known reputable exchanges aside from Binance, and I’ve seen their businesses are also prospering this time. But my worries are for those small exchanges that have not established their names, they will surely be left behind with this stiff competition.

Viscore

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Quote from: jaberwock on February 21, 2023, 12:38:08 PM

Quote from: GreatArkansas on February 21, 2023, 12:19:27 AM

Just incase the numbers are true, I can say it is somehow risky, that's why it is always much better to store your Bitcoin or cryptocurrencies to your personal wallets.
I believe that if incase Binance will fall or likely these amount of volume in the exchange will be compromised, I believe that there will a huge negative effect for the entire cryptocurrency market.

We know how big binance is but over 98%? Man I think this was pretty huge and it seems that they are a little bit shy there. Why they don't just make the numbers 100% but seriously I think the numbers/data's are still lying. There are also other big crypto exchanges out there so it's impossible that binance will get the majority of spot trading volumes.

Binance being the monopoly of crypto is risky because they can manipulate the price easily but the one that you are talking there which is to not store funds inside them is still recommended because after all, they are still a centralized exchange and we all know what these types of platforms can do.

The numbers are quite an exaggeration for me too. Yes, they are trusted by many traders but how about those other top exchanges that are also doing well in the industry. However, there’s no worry about here because I know people are more responsible now where to put their money after the FTX event. I just hope they only trust Binance if they plan to trade, but not eventually for keeping their funds there for long term.

Kasabus

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Quote from: Fivestar4everMVP on February 20, 2023, 06:24:22 PM

There is absolutely nothing to be worried about if you ask me, Binance is a good exchange, that is why majority of traders like to trade there, it is left for other exchanges to rise up and put in the work binance have put to achieve such a huge success, maybe in doing so, they may be able to win binance customers over to themselves.
I personally do not trade on Binance, I have another exchange I mostly trade on, but i can help but applaud Binance for the tremendous effort they put into crypto adoption, Binance have probably brought more people into crypto than we all can ever imagine, let other exchanges rise up and start doing same.

Same with my thoughts too. No need to worry since Binance is trusted by most of the traders, meaning there’s something in Binance that most traders do not find from other exchanges. And certainly, we can’t control the people from trusting it. What we can only do is to encourage other exchanges to improve their services as well, and try to be competitive as much as they can so they won’t be left behind in this type of industry.

maydna

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Quote from: rat03gopoh on February 24, 2023, 06:05:02 AM

Quote from: shinratensei_ on February 23, 2023, 07:11:52 PM

there's certainly reason why binance could have such massive dominance that is because they are trusted and transparent enough that they'd get that much customers flocking over their platform.

It's possible they achieved bitcoin volume dominance currently, but not with their percentage which I think is exaggerated after some hesitation that some members pointed out on pages 1-2. To measure the statistical accuracy of a platform, of course, it must involve various sources that have no relationships, interests, or even competing platforms.

Don't assume that a big company like Binance can't do crazy competitive efforts either. Hence, "don't trust, verify".

Right, and it is our job always to determine whether it is right or wrong. But we may also find it difficult to collect valid data from out there because I'm not sure Binance will just give the data to the public or that those who can get data from Binance are valid data. As a large company, Binance can do anything to show that they are an influential exchange and with the power they currently have, Binance can compete with other platforms. But we never know if Binance can sustain its dominance for a long time.

Hamza2424

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OP I am not sure about your analytics In my view, Yes Binance is one of the biggest shareholders in the market but it is 98% Dominance bro It sounds weird. Binance can be a threat to future market situations as you know every time a major Exchange failure cause a market Crash and put pressure on the community also leads to Panic sell. I would like to mention Centralized exchanges play a major role in crypto adoption but with the passage of time, Every Bull cycle will fade out of the Centralized market.

CEXs Services

Staking
Trading
Borrowing Lending
Derivatives

These are basic services offered by the Centralized Exchanges but you know better after 2021 all these offers are available on the Decentralized apps (Dapps). The connection between the Dapp and personal wallets is not considered much secure but things are getting better so I'm expecting 2024 to be a good year for the complete shift to Decentralization.

goaldigger

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Quote from: EXMON on February 20, 2023, 12:16:39 PM

Join the discussion and share your thoughts on this important topic. Let's work together to explore the potential risks and opportunities of a concentrated crypto market, and find ways to ensure the stability and security of the industry for all participants.

Binance is a the top exchange and that's why there's a lot of FUD against them, which eventually turned down.
The dominance of Binance can tell a possible risk, that's why its not advisable to hold any crypto for long term on any exchanges because its not safe at all even if its the top exchange. Binance is not untouchable I guess, if the black swan happen comes to them for sure it will be a big market crash and many will suffer a lot. For you to be more safe, better to hold your crypto on your hard wallet and worry no more about the possible effect of Binance dominance in the market.

Marvell1

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Quote from: shinratensei_ on February 23, 2023, 07:11:52 PM

there's certainly reason why binance could have such massive dominance that is because they are trusted and transparent enough that they'd get that much customers flocking over their platform.
lets be real, even binance was the one that proposed transparency in the funds holding like in CMC where if the exchange have disclosed their reserved funds it will get some additional badge.
i'd say they deserved it and someone shouldnt sweat over it, im sure binance could always anticipate collapses like the ones occured in the past even though you could never be 100% sure.

I agree with you, we should not deny the fact that Binance is dominating and receiving great trust. Not only small investors like us but also receive the trust of many other large organizations and companies. Our assets are a grain of sand compared to big investors, but it's our money anyway, we need to protect it. Although Binance is reliable, don't put all your trust in them because we won't know what will happen tomorrow. Always leave an outlet for yourself if something goes wrong.

EarnOnVictor

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Quote from: dimonstration on February 20, 2023, 12:23:35 PM

Nope. Volume dominance clearly shows that Binance is the most trusted exchange right now but it doesn’t give much concerned since their founder is clearly dox and will not runaway. If ever he will runaway, There’s no way he can hide all those coin away from the public eyes.

I believe the only that concerns me is the decreasing number of interest on other exchange which might be a cause for some exchange to go under since there will be income.

You are on point, Binance is somewhat trusted as the business is fully understood by the hands operating the company, they've even tried to increase trust when FTX collapsed last year. I believe this has led to increased trust in the company, but the statistic of the trading volume by the OP is certainly wrong.

Aside from the fact that I immediately disagree with it, I still visited "Coinmarketcap" yesterday, the trading volumes are not a replica of what the OP claims.

It's good to be sure of our sources of information to avoid being misled.

John Abraham

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Quote from: lixer on February 23, 2023, 05:20:48 PM

Quote from: John Abraham on February 23, 2023, 12:50:33 AM

Interesting. Does it mean the report OP shows is incorrect?
I would be happy if it's incorrect. There should always be a healthy competitor. Otherwise, they can force us to do whatever they want. Suppose there are no other exchanges, and you must only use Binance. This is the scariest thing I can imagine. I am not saying their service is terrible. But, Not having any competitors will make them arrogant, and slowly, they won't take care of any problems. They will do whatever they want, and I won't have any choices. An Exchange alone shouldn't have more than 45% trading volume. Otherwise, they will control the market and cannot do anything against them.

I agree that it's definitely not that easy to consider the situation we are in right now, it's not that easy because we are talking about bull period and during bull period too many people are blinded by the potential profits and not the losses that they could make.

It is not an easy decision to suddenly stop everything and focus on the potential crash that may come, and I know you suggest that people should be careful about it, but it's not an easy thing to do at all. Just consider 2021 when we dropped from 64k to 29k and then went back up to 68k, people are just not sure if we will crash, or we will have a rebound or not, so it becomes quite tough decision.

I am not sure what you are talking about. What situation we are in right now? What did you mean by stop everything? I was talking about the trading volume on Binance and Centralized exchanges. But, here you are talking about bull run and crash. I am not sure if you quoted my post by mistake. But, Your reply doesn't make sense to me why are you saying this against my words?

The 2021 ATH Pump was genuine because, at that time, a lot of people were in quarantine, and they were thinking about how they could make money. A lot of new people entered the market and invested.

rat03gopoh

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Quote from: shinratensei_ on February 23, 2023, 07:11:52 PM

there's certainly reason why binance could have such massive dominance that is because they are trusted and transparent enough that they'd get that much customers flocking over their platform.

It's possible they achieved bitcoin volume dominance currently, but not with their percentage which I think is exaggerated after some hesitation that some members pointed out on pages 1-2. To measure the statistical accuracy of a platform, of course, it must involve various sources that have no relationships, interests, or even competing platforms.

Don't assume that a big company like Binance can't do crazy competitive efforts either. Hence, "don't trust, verify".

justdimin

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Quote from: lixer on February 23, 2023, 05:20:48 PM

Quote from: John Abraham on February 23, 2023, 12:50:33 AM

Interesting. Does it mean the report OP shows is incorrect?
I would be happy if it's incorrect. There should always be a healthy competitor. Otherwise, they can force us to do whatever they want. Suppose there are no other exchanges, and you must only use Binance. This is the scariest thing I can imagine. I am not saying their service is terrible. But, Not having any competitors will make them arrogant, and slowly, they won't take care of any problems. They will do whatever they want, and I won't have any choices. An Exchange alone shouldn't have more than 45% trading volume. Otherwise, they will control the market and cannot do anything against them.

I agree that it's definitely not that easy to consider the situation we are in right now, it's not that easy because we are talking about bull period and during bull period too many people are blinded by the potential profits and not the losses that they could make.

It is not an easy decision to suddenly stop everything and focus on the potential crash that may come, and I know you suggest that people should be careful about it, but it's not an easy thing to do at all. Just consider 2021 when we dropped from 64k to 29k and then went back up to 68k, people are just not sure if we will crash, or we will have a rebound or not, so it becomes quite tough decision.

Well, it is a bit difficult to calculate from the CMC website considering Binance owns it, they put themselves at 9.9 rating whereas the closest is 7.8 with Coinbase, which should be proof enough that they calculate it with a big bias towards themselves. However, assuming that they are right about that, even in that website they are closer to 50% or so, and not 98% by any definition at all.

I would suggest it is still basically a big large portion of crypto as of right now and that is understandable considering how large they are, but they are not 98%, huge, but not that huge. Is this a threat? Maybe, only if they turn to be shady suddenly or bankrupt or hacked etc etc, but if not, at this moment, it's fine.

famososMuertos

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Quote from: Distinctin on February 23, 2023, 04:03:05 PM

[...//..::.]That is why exchanges should be competitive to its co-exchange as people will always trust top exchanges and those who have already established their reputation for long. Binance is almost there, but I don’t think we should worry for it since they will always be responsible whatever complaints that may suddenly arise. But on part of other exchanges, I guess they will not easily go under as long as their exchange is still gaining demand from people. I don’t think that since Binance gained its dominance, other exchanges will be completely threaten. Exchanges will always survive as long as they are well-managed.

The issue is financial education, there should not be that concentration of common users, in reality the users who take commercial advantage of any exchange are a few, the vast majority do simple trading.

The idea of why we are here, Bitcoin, should allow or prevent the concentration of crypto assets on these exchanges, which is different from simply being a user who uses the Exchange.

In other words, why You go to the football stadium, when there is no match, that doesn't make you a better fan.

I would never, ever extend a word of confidence to these owns, Really not, Binance is exposed to bankruptcy, Scam, hack or simply closed, as has happened and will surely continue to exist.

Nobody should entrust their assets to a centralized exchange and even less to Binance and by the way, I have an account at Binance, but I am very clear that I am not a fan of this Exchange.

shinratensei_

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there's certainly reason why binance could have such massive dominance that is because they are trusted and transparent enough that they'd get that much customers flocking over their platform.
lets be real, even binance was the one that proposed transparency in the funds holding like in CMC where if the exchange have disclosed their reserved funds it will get some additional badge.
i'd say they deserved it and someone shouldnt sweat over it, im sure binance could always anticipate collapses like the ones occured in the past even though you could never be 100% sure.

lixer

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Quote from: John Abraham on February 23, 2023, 12:50:33 AM

Interesting. Does it mean the report OP shows is incorrect?
I would be happy if it's incorrect. There should always be a healthy competitor. Otherwise, they can force us to do whatever they want. Suppose there are no other exchanges, and you must only use Binance. This is the scariest thing I can imagine. I am not saying their service is terrible. But, Not having any competitors will make them arrogant, and slowly, they won't take care of any problems. They will do whatever they want, and I won't have any choices. An Exchange alone shouldn't have more than 45% trading volume. Otherwise, they will control the market and cannot do anything against them.

I agree that it's definitely not that easy to consider the situation we are in right now, it's not that easy because we are talking about bull period and during bull period too many people are blinded by the potential profits and not the losses that they could make.

It is not an easy decision to suddenly stop everything and focus on the potential crash that may come, and I know you suggest that people should be careful about it, but it's not an easy thing to do at all. Just consider 2021 when we dropped from 64k to 29k and then went back up to 68k, people are just not sure if we will crash, or we will have a rebound or not, so it becomes quite tough decision.

Hamphser

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Quote from: Distinctin on February 23, 2023, 04:03:05 PM

Quote from: dimonstration on February 20, 2023, 12:23:35 PM

Nope. Volume dominance clearly shows that Binance is the most trusted exchange right now but it doesn’t give much concerned since their founder is clearly dox and will not runaway. If ever he will runaway, There’s no way he can hide all those coin away from the public eyes.

I believe the only that concerns me is the decreasing number of interest on other exchange which might be a cause for some exchange to go under since there will be income.

That is why exchanges should be competitive to its co-exchange as people will always trust top exchanges and those who have already established their reputation for long. Binance is almost there, but I don’t think we should worry for it since they will always be responsible whatever complaints that may suddenly arise. But on part of other exchanges, I guess they will not easily go under as long as their exchange is still gaining demand from people. I don’t think that since Binance gained its dominance, other exchanges will be completely threaten. Exchanges will always survive as long as they are well-managed.

As years passing by on which regulation becomes even more stricter which it is really just that expected for these platforms on being compliance for whatever the government had able to set it out.It is really just

that people cant really just removed out into their minds about these possible risk which i couldn't blame them considering on how many instances on which these exchange platforms do expereince huge problems.

About dominance then there's nothing we can do about it, it is really just that they are really that aggressive when it comes to marketing and other promotions and exposure which would really be leading up that
people would really be sticking out into their service and this is why its not shocking on why they are placed on the top of rankings because of on what they are doing.

Distinctin

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Quote from: dimonstration on February 20, 2023, 12:23:35 PM

Nope. Volume dominance clearly shows that Binance is the most trusted exchange right now but it doesn’t give much concerned since their founder is clearly dox and will not runaway. If ever he will runaway, There’s no way he can hide all those coin away from the public eyes.

I believe the only that concerns me is the decreasing number of interest on other exchange which might be a cause for some exchange to go under since there will be income.

That is why exchanges should be competitive to its co-exchange as people will always trust top exchanges and those who have already established their reputation for long. Binance is almost there, but I don’t think we should worry for it since they will always be responsible whatever complaints that may suddenly arise. But on part of other exchanges, I guess they will not easily go under as long as their exchange is still gaining demand from people. I don’t think that since Binance gained its dominance, other exchanges will be completely threaten. Exchanges will always survive as long as they are well-managed.

John Abraham

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Quote from: Synchronice on February 23, 2023, 07:48:24 AM

If you don't want to compromise anonymity and privacy, there are non-kyc alternatives. But if you want to get top-tier service, then you have to compromise something. Anyway, everyone has to compromise something in order to achieve what he wants. At the moment it's reality and it can't be changed and yeah, I know that elites do all kind of shit through regulated companies.

We all doing it because Binance is too famous at the moment. Almost all famous exchanges required KYC. I don't know any Non-KYC exchanges that are reliable. In my country, almost 90% of people use Binance to buy and sell Bitcoin and other crypto. Because of that, we had to compromise privacy. Bitcoin users are supposed to be anonymous. But, when it comes to cash out and buying bitcoins, you have fewer choices. In fact sometimes no choices other than KYC-ed Exchanges.

Some Non-KYC exchanges offer BTC to USDT and others as well. But, they do not support local fiat money. If you want to buy bitcoin with USDT, You can do it from Non-KYC-ed exchanges. But, When it comes to buying/selling bitcoin for fiat. KYC-ed exchanges are the only choice.

Getmon

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Is there any truth behind it? I do not think so. And when you are only looking at the bitcoin spot market, you do not refer to it as the entire crypto currency market. I do not think Binance controls 98% of the bitcoin spot market. It is simple and easy to check at Coinmarketcap. Binance currently has the most volume on bitcoin trading, but not as much as previously mentioned. Furthermore, if we examine the entire crypto currency market, the dominance of Binance should only be around 80 percent, and this could change anytime soon.

death69

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Quote from: Synchronice on February 23, 2023, 07:48:24 AM

Quote from: DaveF on February 20, 2023, 01:12:04 PM

And there you go assuming they are showing you 'real' numbers. For years exchanges have been been throwing up fake trades / allowing wash trades and all kinds of things to make them look larger then they really are.
So no, I'm not worried. Actually if Binance goes the way of FTX except for a short dump of price as everyone tries to get their funds out it would only help BTC

Not your keys, not your coins.

-Dave

What way do you think that it will benefit bitcoin? It shouldn't be hard to understand that your keys = your coins is not something that attracts average user. If you want bitcoin or crypto adoption overall, then this coin should become easier to use for average person. What Binance does is that it makes the whole process easier, you don't have to worry about your keys and you can open one account where you'll store almost every coin. This is what average crypto user wants and without them bitcoin can't become widely accepted.

The problem here is that exchanges do whatever they want. No one gives a f that they fake volume, no one cares who does what, there is an anarchy-like system. I also genuinely believe that exchanges fake futures trading to liquidate their users' assets and earn more money.

The current situation of exchangess is hella far from perfect. But, like, it's not all bad, ya know? Sure, the average user might not have a clu about their privet kees, but we dont gotta sacrifice security jus to make things easier. What we need is a dope education system that really emphasizes the importance of keeping your assets safe, expressly wen it comes to crypto. And don't even get me started on that fake volume and futures trading mess. You gotta do your homework and pick exchangess that are all about transparency and security, ya dig? It might take a minute for the industry to grow up and for the rules to catch up, but in the meantime, we can still get our hustle on and make some cash. Just remember to keep it real and not get tooo caught up in the game - we've all lost sum coins to a "rug pull" or a "pump and dump" scam, you feel me? As long as your having fun and learnin from your mistakes, that's all that matters.

Topic: Binance's 98% Dominance: Should We Be Worried? (Read 313 times)