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

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Quote from: dimonstration on February 20, 2023, 11:23:35 AM

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.

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Quote from: dimonstration on February 20, 2023, 11:23:35 AM

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.

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Quote from: jaberwock on February 21, 2023, 11:38:08 AM

Quote from: GreatArkansas on February 20, 2023, 11:19:27 PM

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.

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Quote from: Fivestar4everMVP on February 20, 2023, 05:24:22 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.

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

Quote from: shinratensei_ on February 23, 2023, 06:11:52 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.

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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.

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Quote from: EXMON on February 20, 2023, 11:16:39 AM

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.

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Quote from: shinratensei_ on February 23, 2023, 06:11:52 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.

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Quote from: dimonstration on February 20, 2023, 11:23:35 AM

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.

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Quote from: lixer on February 23, 2023, 04:20:48 PM

Quote from: John Abraham on February 22, 2023, 11:50:33 PM

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.

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Quote from: shinratensei_ on February 23, 2023, 06:11:52 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".

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Quote from: lixer on February 23, 2023, 04:20:48 PM

Quote from: John Abraham on February 22, 2023, 11:50:33 PM

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.

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Quote from: Distinctin on February 23, 2023, 03:03:05 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.

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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.

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Quote from: John Abraham on February 22, 2023, 11:50:33 PM

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.

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

Quote from: dimonstration on February 20, 2023, 11:23:35 AM

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.

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Quote from: dimonstration on February 20, 2023, 11:23:35 AM

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.

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Quote from: Synchronice on February 23, 2023, 06:48:24 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.

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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.

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Quote from: Synchronice on February 23, 2023, 06:48:24 AM

Quote from: DaveF on February 20, 2023, 12:12:04 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.

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Based on service and how many altcoin listing make Binance keep dominance on the global currency exchange market than other exchange right now, I don't think become problem due Binance can give well service for all user. Binance first exchange adopted with P2P transaction and give opportunity for all member can withdrawing cryptocurrency assets to the bank without waiting longer time.

Not only with P2P service but also several time launchpad launching worth and price keep growing when listing in Binance, I think after FTX collapse maybe Kucoin or Houbi become the new rival for Binance exchange.

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This is just a reflrection how does the binance trusted by the people and of course we know how they really protect their users with their different features and perks of using with their services, for me its just a good thing, for another instances of other exchange still have a good thing to them because the users have another options depends on the users preferences and requirements.

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Quote from: DaveF on February 20, 2023, 12:12:04 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.

Quote from: EXMON on February 19, 2023, 03:26:19 AM

However, KYC can also compromise anonymity and privacy, which are often highly valued by cryptocurrency users. Some argue that the need for KYC goes against the decentralized and borderless nature of cryptocurrencies, and can even put users at risk of data breaches and identity theft.

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.

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Quote from: noorman0 on February 21, 2023, 08:10:17 AM

Fyi @Op, some exchanges are not covered by coinalyze like Mexc, Bitget, Btcex and Tidex (even they are hidden in the exchanges summary on CMC, lol) while they contribute very high bitcoin trading volume if you look at other aggregator sites. So I assume the statistics you provide are not valid (or you could say manipulated). My worries stop here. Tongue

OP's number is incorrect but Binance's dominance in the market is correct. I also don't believe 98%, but 70-80% is pretty sure if you look at other websites' stats. I would love to use Binance, but their market dominance is something I've been thinking about and I don't like it at all. When power is too concentrated on one force, it will cause many consequences for the market, the market is no longer balanced and free. But prolonging this will also not benefit Binance as the legal authorities will accuse Binance of monopolies, I believe CZ knows about it too.

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Quote from: Oshosondy on February 20, 2023, 11:35:17 AM

According to what I saw on Coingecko, I do not think Binance has up to 98% of trading volume, but we all know that it dominates all other exchanges.

According to what I saw on Coingecko:

Quote from: https://www.coingecko.com/en/exchanges

As of today, we track 600 crypto exchanges with a total 24h trading volume of $105 Billion, a 58.8% change in the last 24 hours. Currently, the 3 largest cryptocurrency exchanges are Coinbase Exchange, KuCoin, and Kraken. Total tracked crypto exchange reserves currently stands at $110 Billion

Binance 24 hours trading volume is $25,991,400,403.

If $105 billions is the total on all exchanges and Binance only accounts for approximately $26 billion. In percentage, that is just approximately around 25.8% not 98%.

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.

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Quote from: Rikafip on February 22, 2023, 05:50:40 AM

Quote from: AmoreJaz on February 21, 2023, 05:55:31 PM

also, i believe that trust is with binance owed to its SAFU, an insurance to its users. so whether binance is hacked or got into trouble, users are confident that they can get their funds because of this insurance.

That's one of the biggest mistakes you can do, think that your money is safe on Binance just because of the SAFU fund. While that can maybe cover smaller hacks, in case shit hitting the fan like in FTX case that SAFU thing will be meaningless and you can say goodbye to your money.

Yes, people should be thinking up the possible worst case scenario and wont really be just that confident or just simply looking on smaller scale hacks incident.If this one would happen on Binance then
pretty sure lots would really be taking suicide specially to those people who had been storing up their assets or coins in the wallet on full blast or all in.

We cant really deny out that Binance is really that dominating when it comes to volume and overall usage when it comes to exchange platform.
People should at least know about the risk on storing up their assets on exchange platforms.Its never been that ideal nor recommendable since from the start.

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Quote from: AmoreJaz on February 21, 2023, 05:55:31 PM

also, i believe that trust is with binance owed to its SAFU, an insurance to its users. so whether binance is hacked or got into trouble, users are confident that they can get their funds because of this insurance.

That's one of the biggest mistakes you can do, think that your money is safe on Binance just because of the SAFU fund. While that can maybe cover smaller hacks, in case shit hitting the fan like in FTX case that SAFU thing will be meaningless and you can say goodbye to your money.

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Quote from: Bushdark on February 21, 2023, 04:54:34 PM

This is something I am not too bothered about but it is going to affect most people that do keep there tokens and holdings on Binance.
Binance is the world largest cryptocurrency market and it has it stable coin which is BUSD and volatile coin like BNB. This had made the crypto exchange to soar higher than most of it formal competitors. There was fud about Binance previous time but the fud could not affect the exchange because it seems like it has strong holds and with it simplicity. Investors prefers Binance to many of the crypto exchanges in the market currently.

they do prefer binance because of its reputation in the trading market. i haven't heard any story that someone can't withdraw from binance. if there's any, it is the fault of the user himself. also, i believe that trust is with binance owed to its SAFU, an insurance to its users. so whether binance is hacked or got into trouble, users are confident that they can get their funds because of this insurance.

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Binance is now the leading and top exchange, but who knows the future exactly?
Although we know how Binance is, we must still consider not trusting any exchange 100% including Binance. We still don't know what will happen to this platform later, whether this will be taken over by other platforms, got big hacks, or others. I don't expect these. But at least, we can be more aware to be more careful. Nothing to trust 100%. We must also have other alternatives to secure at least our assets. Or even if we trust Binance, we can use it to gain any profits, but not for trusting 100%.

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This is something I am not too bothered about but it is going to affect most people that do keep there tokens and holdings on Binance.
Binance is the world largest cryptocurrency market and it has it stable coin which is BUSD and volatile coin like BNB. This had made the crypto exchange to soar higher than most of it formal competitors. There was fud about Binance previous time but the fud could not affect the exchange because it seems like it has strong holds and with it simplicity. Investors prefers Binance to many of the crypto exchanges in the market currently.

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The recent spike in the trading volume is as result of the influx of traders who was being effected by the FTX collapse , the customers are left with no option than to resort to trading with Binance which seems to be one of the most reputable exchange out there which has stand the test of time in almost every angle of their business when compared to other crypto exchanges.

However, As it stands so right now ,No exchange is 100% trusted.
It has been said several times, not your keys not your crypto, You get worried if you keep your cryptos in centralized exchange custody.
If your are a day trader, After trading activities at the end of the day, withdraw your cryptos from the exchange to a personal wallet.

Flexystar

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There is mixed conclusion about this considering the numbers are not verified and there is no way whether Binance is actually having that much volume. One of the article that I read few months ago suggest that Binance is showing edited data which means they are not really showing what is happening inside their books. The trade volume could be manipulate thus leading to wrong impressions to every user of it. In similar way we are not able to be verify that rumour, we can safely say that binance dominance is not confirmed as well. Plus this should not be called as dominance but merely higher user base believing in binance for its service. Though centralised, the exchanger holds people’s money which they can’t just use or withdraw just like that. It seems we will have safer points always.

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Quote from: dimonstration on February 20, 2023, 11:23:35 AM

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.

Lol. Did you sleep over the last year or so? Celsius CEO (Alex Mashinsky) was doxxed, FTX CEO (Sam Bankman-Fried) was doxxed as well and we can see how that ended up for their users. Just because Binance is at the top at the moment and CZ is a known person doesn't meant that things can't go south.

At one point in time Mt.Gox was even bigger than Binance is now (relative to the market size) and that didn't end up well either, meaning no matter how big an exchange is, it doesn't mean that it can't bankrupt. People should stop treating exvchanges like banks because they aren't. If you have to use CEX, use it for that they are intended for (trading) and after you are done, withdraw funds to your own non-custodial wallet.

While I seriously doubt that Binance market dominance is as big as claimed in the topic title, I don't think that its good for market to have exchange that controls majority because the bigger exchange is, bigger the influence on market will be in case of fail.

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Binance has been able to increase its dominance in the crypto market as traders continue to use the exchange. Now if they can make themselves credible in the market and traders value it then no one can stop them.

Too much dominance of any one company in the market is definitely not good for healthy competition and a fair market. So until there is a strong player in the market that can be accepted by traders, Binance will continue to dominate.

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I think that 98% is an exaggerated number. There are strong exchanges besides Binance with large trading volume and liquidity, so I do not think that Binance has all this number.

But it is certain that Binance has the lion’s share, and this is what makes the market move towards centralization. Everyone here hates centralization and knows its disadvantages, but despite all that, everyone is racing to register in Binance and get an account there because of the large liquidity and many other advantages.

Centralization has high risks, the least of which is controlling the market, and if Binance is hacked or problems like what happened with FTX, then this means an earthquake in Crypto.

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Quote from: GreatArkansas on February 20, 2023, 11:19:27 PM

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.

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Fyi @Op, some exchanges are not covered by coinalyze like Mexc, Bitget, Btcex and Tidex (even they are hidden in the exchanges summary on CMC, lol) while they contribute very high bitcoin trading volume if you look at other aggregator sites. So I assume the statistics you provide are not valid (or you could say manipulated). My worries stop here. Tongue

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Quote

Should We Be Worried?

Firstly, yes if you put your savings on Binance.
Put your money in your wallet since the bigger the exchange, the higher the risk of it getting all sorts of security breaches. You can lose all your money if this happens.

Second, yes even if you don't put your money there.
In the event of a major catastrophe, the market will be in shock since practically the price is set in the Binance. But as long as you have your fund in your personal wallet, the price can bounce back after the event.

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Quote from: EXMON on February 20, 2023, 11:57:55 AM

If you look at the image, you can see that we are talking about BTC volumes

Binance moved to zero fee trading many months back, this is one of the reasons that many traders prefer to use the exchange and they have more bitcoin trading volume. That Binance has 98% out of the 100% of the world total, that is not what I can believe. You do not have to believe everything that you see online, some are just fake information.

GreatArkansas

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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.

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Quote from: adaseb on February 20, 2023, 09:39:40 PM

The volume is not that high, it never was. I am pretty sure MtGox back in 2014 dominance wasn't even that high. You are just looking at one market. They are fairly big but their dominance is maybe around 50% or something and this varies depending on what markets. For example whether its spot or perpetual swaps.

Either way, these days it doesn't make that much of a difference because we got tons of other exchanges unlike the MtGox days. Where when they went down, it caused a huge problem. Eventually as time goes on their dominance will start to fade off into other exchanges.

It is obvious the data is wrong as there is no way that binance has such dominance over the market, and if it went down it should be worrying and it will bring massive losses to a lot of traders, but on the big scheme of things it changes nothing, if binance collapsed the price of bitcoin and all the altcoins will go down for a few weeks or months, but then the market will begin to recover as it always does, so I do not see what it could be done about it other than to take steps to protect ourselves and never leave our coins at any exchange.

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Quote from: dimonstration on February 20, 2023, 11:23:35 AM

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.

It is good for Binance and they gained it after the collapse of FTX. CZ pulled the trigger that force FTX to collapse within a couple of days. From the FTX collapse, people realized that Binance had their reasons to separate from FTX about one year before. It shows Binance have a smart team and are able to detect serious dead points from competitors. In addition, they have very good and safe management for their exchange that helps them to gain more trust and more users.

Quote

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.

The collapse of FTX exchange forces other exchanges have to be more transparent with their treasury management and reports to their customers. It is good for cryptocurrency exchange industry and the industry should have a round of applause to CZ and Binance.

In a contrasting, Binance have become a favorite target of other exchanges and latest weeks, we got lot of fud to attack Binance.

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If that's true then is there a way to reduce their dominance? Their dominance is because Binance continues to develop which makes traders continue to use this exchange and also because this exchange has many features that can meet all needs on trading so Binance's dominance will only be less if there is another exchange that can provide the same or more than Binance give, should we be worried? worries can be reduced by just keeping money there when trading, not as a place to store money like a wallet, and continue to campaign to many people that the exchange is a place to trade not a place to store assets.

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The volume is not that high, it never was. I am pretty sure MtGox back in 2014 dominance wasn't even that high. You are just looking at one market. They are fairly big but their dominance is maybe around 50% or something and this varies depending on what markets. For example whether its spot or perpetual swaps.

Either way, these days it doesn't make that much of a difference because we got tons of other exchanges unlike the MtGox days. Where when they went down, it caused a huge problem. Eventually as time goes on their dominance will start to fade off into other exchanges.

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Quote from: EXMON on February 20, 2023, 11:16:39 AM

What do you think about Binance's overwhelming dominance in the crypto market? Should we be worried about the potential risks that come with such a concentrated market? What steps can be taken to mitigate these risks and promote healthy competition in the crypto ecosystem?

I think is not a problem, while Binance isn't monopolizing the market,
It's just how marketing strategy work. we don't say binance will control the world if have dominance in the market while they have trust, reputable, and responsibility.

So, we don't know who is speaking, this is just a concern about profit, maybe the other company or exchange trying to scare binance customer to leave it and move to small exchanges with I thing is not logic in business competition. Another exchange can't fairly compete, and they try to weaken binance with negative issues

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We cannot do anything with their dominance in the market. What's tough for them is to maintain their position because they've seen in the past from the other popular and dominating exchanges lose that position.

Us, we can trade anywhere we want and where we're happy and convenient to trade. No doubt that they really are dominating the market because on how they're marketing and keeping themselves up with the trend.

Sometimes, there have been issues that even it's all about damaging them yet they've managed to give that confidence and assurance to their customers despite that everyone is aware about the risk of not having your own keys.

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For the high Dominance exchange it's natural that we worried but IMO not on Binance, this exchange is on the top exchange and has generally been seen as a highly reputable and very popular exchange. So IMO, nothing to worry about.

The risks would be if you're not in a top and reputable exchange.

Liquidity risks
Security risks
Regulatory risks

However, we shouldn't be confident too much since it's a centralized exchange, it's important to monitor the exchange's actions closely and ensure that it's not engaging in anti-competitive or fraudulent activities that could harm the overall health of the industry. Don't let your coins sleep there and always remember the golden rule of crypto "Not your keys, not your coins".

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Quote from: dimonstration on February 20, 2023, 11:23:35 AM

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.

IMO being doxxed is not sufficient for a person to not do nefarious things for their own gain. Just look at SBF for example. He was known around the world for being the CEO of a possible competitor to Binance, and his platform actually did quite well on its initial days. However that did not deter him from misappropriating the funds and diverting it to another of his company. Not saying that CZ will never do this, but we never really know what's happening in the sidelines.

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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.

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This doesn't sound right. Where does coinalyze get their cex volume data from? Because if it's coinmarketcap.com data i am assuming that binance would like us to believe that their fake btc volume is way less fake then in other exchanges.

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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

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Quote from: Oshosondy on February 20, 2023, 11:55:17 AM

Quote from: EXMON on February 20, 2023, 11:47:34 AM

This is not my data, I referred to the source

What is the validity of your source is what it is my post, that your source is not correct. We know that Binance dominates but not the extent that it has 98% of the 24 hours trading volume of all exchanges. Take a look at it yourself and see if it is possible with what is even on Coinmarketcap that is owned by Binance. It is all not true that the spot market trading volume on all other exchanges is just 2% while Binance 98%, that is a big lie and not correct is what I am saying. But it will be good if you can prove me wrong.

If you look at the image, you can see that we are talking about BTC volumes

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Quote from: EXMON on February 20, 2023, 11:47:34 AM

This is not my data, I referred to the source

What is the validity of your source is what it is my post, that your source is not correct. We know that Binance dominates but not the extent that it has 98% of the 24 hours trading volume of all exchanges. Take a look at it yourself and see if it is possible with what is even on Coinmarketcap that is owned by Binance. It is all not true that the spot market trading volume on all other exchanges is just 2% while Binance 98%, that is a big lie and not correct is what I am saying. But it will be good if you can prove me wrong.

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Quote from: dimonstration on February 20, 2023, 11:23:35 AM

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.

The dominance of any single exchange in the crypto market, especially one as large as Binance, can potentially present risks to the broader ecosystem. Here are some potential reasons why:

   Centralization of Power: Binance's overwhelming dominance in the spot crypto trading volume means that they have significant influence over the market. This could be potentially concerning if the exchange were to manipulate the market for their own benefit or if they were to experience a security breach, which could have severe consequences for the wider crypto industry.

   Limited competition: With such a large market share, Binance could potentially stifle competition from smaller exchanges, which could lead to reduced innovation, fewer options for consumers, and higher trading fees.

   Regulatory Risk: The concentration of market power in one exchange could attract increased regulatory scrutiny, which could lead to stricter regulations or even outright bans in some countries.

Quote from: Oshosondy on February 20, 2023, 11:35:17 AM

According to what I saw on Coingecko, I do not think Binance has up to 98% of trading volume, but we all know that it dominates all other exchanges.

According to what I saw on Coingecko:

Quote from: https://www.coingecko.com/en/exchanges

As of today, we track 600 crypto exchanges with a total 24h trading volume of $105 Billion, a 58.8% change in the last 24 hours. Currently, the 3 largest cryptocurrency exchanges are Coinbase Exchange, KuCoin, and Kraken. Total tracked crypto exchange reserves currently stands at $110 Billion

Binance 24 hours trading volume is $25,991,400,403.

If $105 billions is the total on all exchanges and Binance only accounts for approximately $26 billion. In percentage, that is just approximately around 25.8% not 98%.

This is not my data, I referred to the source.
If you look at the image, you can see that we are talking about BTC volumes

Oshosondy

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According to what I saw on Coingecko, I do not think Binance has up to 98% of trading volume, but we all know that it dominates all other exchanges.

According to what I saw on Coingecko:

Quote from: dimonstration on February 20, 2023, 11:23:35 AM

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.

If anything bad like massive hack occur on that exchange, it would be a big blow that will bring a very massive bear market that will result to massive money loss. It is not good for anything to be more centralized.

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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.

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Binance, the world's largest cryptocurrency exchange, now accounts for over 98% of all spot crypto trading volume, according to data from coinalyze.net. While this level of dominance might seem impressive, it also raises concerns about the potential risks of a concentrated market.

What do you think about Binance's overwhelming dominance in the crypto market? Should we be worried about the potential risks that come with such a concentrated market? What steps can be taken to mitigate these risks and promote healthy competition in the crypto ecosystem?

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.

coinalyze.net

Topic: Binance's 98% Dominance: Should We Be Worried? (Read 383 times)