Can Binance also get bankrupt soon? | Bitcointalksearch.org

fortunecrypto

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Quote from: krishnaverma on November 12, 2022, 11:11:12 AM

Most of the members will not agree with the topic that Binance may also get bankrupt soon but we were alll thinking the same about the second largest crypto exchange after Binance. And we all know what has happened to FTX in last few days.
What concerns me is that there are some reasons which might cause big downfall of Binance also and it will have very bad effect on crypto in general. First thing that can cause collapse of Binance is regulations. Government is doing lot of research regarding this and they can take strict actions soon against the exchange. They can impose large fines on the exchange which can cause huge imbalance in their balance sheet. Another possibility os that some scams might surface up from behind the scenes in the exchange which is completely break the trust of investors and they will all start withdrawing the funds from the exchange making it completely dead.

Changpeng Zhao and Binance will do everything they can legally to stay on top, during the pandemic he is on top of the situation when Bitcoin is crashing by issuing a statement that he will not sell his Bitcoin and now he is allocating $2 billion to companies that suffer on the FTX fiasco, he is doing this to continue to enjoy the trust of investors and traders everything depends on the trust of the community.

All exchanges are not safe from collapse even Binance, they have to do innovation, stop the abuse from bad players, and always a voice hope for the market, all exchanges are just one bad action away from collapse even if these exchanges are major players in the industry, FTX is one big example that in this industry no one is safe.

2stout

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Binance seems stable but anything is possible. I would say even more concerning is about 40% of their reserves are in its own token. If there was ever a run on Binance token, this would be extremely ugly and make the FTX debacle look like child's play.

Marvell1

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Quote from: South Park on November 20, 2022, 02:36:10 PM

Quote from: royalfestus on November 12, 2022, 03:23:55 PM

I am more concerned about CZ's role in the collapse, which some have described as a betrayal. My only hope is that binance will not be the next target as the top exchange. After withdrawing from the exchange to aid the collapse, he now appeared to be interested in acquiring it. Several months ago, you made over 2 billion dollars on the same exchange. Due to Bankman's association with top American politics, I'm wary about revenge on the Binance as a Chinese exchange companies that seem to dominate the same industry.

While he has a role in all of this we cannot completely blame him for what happened, SBF has taken some moves against him on the past and CZ decided to return the courtesy, the difference is that binance was a solid institution while FTX was not, so it collapsed after what CZ did, however we cannot really put too much blame on him because even if he did nothing then a collapse of the FTX exchange would have happened anyway at some point in the future.

CZ was not the one who initiated the collapse of FTX, coindesk was the first to publicize the audit report of FTX with many holes when most of the reserve assets were FTT. I don't see this as retaliation or unfair competition, if FTX had enough reserves as they claim they wouldn't have a problem with FTT being dumped. The FTX bomb is a bomb that will explode sooner or later and I feel fortunate that it is detected early, the longer it is, the more severe the consequences.
https://twitter.com/crypto/status/1595673091803226112

PX-Z

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There is no kind business that is exception of bankruptcy, it always on their management and executives as always on how handle things. But for current financial status of binance, i guess it wont happen so soon, maybe a hacked, mismanaged, inside jobs happened.

eaLiTy

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Quote from: Husires on November 17, 2022, 07:20:19 AM

Ordinary people like you and me do not have access to detailed information that no one knows except for the big investors who have access to the financial statements and have a team of accountants who can know all the things and achieve a comprehensive and detailed investigation.

Binance does release their financial statements every year and even the big investors will be having those information and nothing special unless there is an audit from a third party which any of these crypto companies are willing to undergo.

Quote from: Husires on November 17, 2022, 07:20:19 AM

If a recession occurs and the monetary tightening crisis intensifies, we will see more complacency from more platforms that go bankrupt, and therefore all options are open.

As long as Binance is getting the profits they are claiming they are getting according to their statements they are safe. They even implemented Merkle Tree proof of reserves to be transparent which is a good initiative.

NeuroticFish

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Quote from: Uzairjutt275 on November 26, 2022, 04:26:17 AM

Binance is a top Decentralised Exchange in Cryptocurrency and also popular Exchange. I think binance Will be not bankrupt because this is most used exchange in the world and also highly secure. If this happen in the future when binance Will be Bankrupt there will be a big loss in Cryptocurrency and also BNB coin will be crash.

You are very much confused. Binance, no matter it offers both standard centralized exchange and also something they call P2P exchange (but with Binance as escrow!), it's centralized.
Binance tries very hard to tell everybody how healthy they are and how big funds they have, although the funds they want to help others with are their own BUSD (which, if Binance falls, will become worthless).

CZ is very active and pretty skilled in the war of exchanges and has the potential to keep Binance surviving even if, by chance, the image they are projecting is fake.
However, it all also depend on how low will Bitcoin price go, how many other centralized platforms will fall (and whether Binance has exposure there) and how much money do Binance customers will withdraw to their own wallets.

So all looks still stable for now, but never say never...

Uzairjutt275

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Quote from: krishnaverma on November 12, 2022, 11:11:12 AM

Most of the members will not agree with the topic that Binance may also get bankrupt soon but we were alll thinking the same about the second largest crypto exchange after Binance. And we all know what has happened to FTX in last few days.
What concerns me is that there are some reasons which might cause big downfall of Binance also and it will have very bad effect on crypto in general. First thing that can cause collapse of Binance is regulations. Government is doing lot of research regarding this and they can take strict actions soon against the exchange. They can impose large fines on the exchange which can cause huge imbalance in their balance sheet. Another possibility os that some scams might surface up from behind the scenes in the exchange which is completely break the trust of investors and they will all start withdrawing the funds from the exchange making it completely dead.

Binance is a top Decentralised Exchange in Cryptocurrency and also popular Exchange. I think binance Will be not bankrupt because this is most used exchange in the world and also highly secure. If this happen in the future when binance Will be Bankrupt there will be a big loss in Cryptocurrency and also BNB coin will be crash.

South Park

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Quote from: royalfestus on November 12, 2022, 03:23:55 PM

I am more concerned about CZ's role in the collapse, which some have described as a betrayal. My only hope is that binance will not be the next target as the top exchange. After withdrawing from the exchange to aid the collapse, he now appeared to be interested in acquiring it. Several months ago, you made over 2 billion dollars on the same exchange. Due to Bankman's association with top American politics, I'm wary about revenge on the Binance as a Chinese exchange companies that seem to dominate the same industry.

While he has a role in all of this we cannot completely blame him for what happened, SBF has taken some moves against him on the past and CZ decided to return the courtesy, the difference is that binance was a solid institution while FTX was not, so it collapsed after what CZ did, however we cannot really put too much blame on him because even if he did nothing then a collapse of the FTX exchange would have happened anyway at some point in the future.

YOSHIE

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Quote from: krishnaverma on November 12, 2022, 11:11:12 AM

What concerns me is that there are some reasons which might cause big downfall of Binance also and it will have very bad effect on crypto in general.

Your topic and question reminded me what @Rodney answered.

Answer from @Rodney very simple all problem It’s going to completely depend on what caused Binance to go out of business..

Quote

If it’s the case that Binance shut down and goes bankrupt due to things like bad business handling or bad capital and finance management, there’s a decent chance that Binance would simply notify their users that their service is shutting down, while giving them ample amounts of time to withdraw their money.

On the other hand, if it’s the case that Binance goes bankrupt through a hack on their cold wallet storage, it’s a lot less likely for you to gain back access to your funds even if Binance has their own insurance fund.

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I think what @Rodney said, it makes sense there are certain factors if Binance goes bankrupt, but I'm not sure it could happen, but God only knows.

Jatiluhung

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Quote from: BD Crypto on November 20, 2022, 06:23:54 AM

I don't think Binance will also get bankrupt soon because it's the most popular crypto exchange and have a clear vision about it's security. But in case of centralized exchanges anything can be happened. So it's better to use non custodial wallets to store cryptos.

well for now and in the near future there is no reason for binance to go bankrupt like FTX. or maybe Binance can still cover the emerging gaps. And yes, all Cex still have the same risk of bankruptcy. so that's where we have to be vigilant and learn from the bankruptcy cases that have occurred in large exchanges. keeping our coins in a private wallet is indeed safer. and only use the Exchange for trading activities, and not for long-term storage of assets.

BD Crypto

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I don't think Binance will also get bankrupt soon because it's the most popular crypto exchange and have a clear vision about it's security. But in case of centralized exchanges anything can be happened. So it's better to use non custodial wallets to store cryptos.

onecall123

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Quote from: Darker45 on November 17, 2022, 10:52:22 PM

Can Binance also get bankrupt soon? Yes! Can it get bankrupt tomorrow? Yes! Can it get bankrupt any minute from now? Yes! So everybody should be withdrawing their funds out of Binance. And all centralized exchanges and custodial platforms for that matter, because they all share the same possibility.

There is more than one reason for Binance to crash any minute from now. Yes, it could be about regulation. But they could also be linked to a corrupt or sanctioned government, illegal marketplace, hacker group, and many others. They could suddenly be fined a huge amount. They could suddenly be prosecuted. CZ could be arrested. They could be hacked any minute from now. Or somebody from the inside could steal funds from their cold wallets. Or they might scam exit and vanish into thin air.

My point is that for as long as your funds are not under your sole control, it is always possible to lose it any second.

Companies regulated by the US government have gone bankrupt. It is therefore impossible to trust anyone. As far as I am concerned, Binance is not honest, trustworthy or reliable. Unfortunately, I am not familiar with the options available that people feel are the most reliable. There's no point in trusting anyone. The owners of the company don't care about you, they're running a business.

Even before crypto existed, the term 'bankrupt' was used. You won't be worried until you have a few dollars left in Binance.

m2017

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Quote from: krishnaverma on November 12, 2022, 11:11:12 AM

Most of the members will not agree with the topic that Binance may also get bankrupt soon but we were alll thinking the same about the second largest crypto exchange after Binance. And we all know what has happened to FTX in last few days.
What concerns me is that there are some reasons which might cause big downfall of Binance also and it will have very bad effect on crypto in general. First thing that can cause collapse of Binance is regulations. Government is doing lot of research regarding this and they can take strict actions soon against the exchange. They can impose large fines on the exchange which can cause huge imbalance in their balance sheet. Another possibility os that some scams might surface up from behind the scenes in the exchange which is completely break the trust of investors and they will all start withdrawing the funds from the exchange making it completely dead.

No exchange has a 100% guarantee against bankruptcy. Whether it's the latest and worst of them, it's №1 in the cryptoindustry. This must be taken into account when storing your crypto currencies on them. If you are afraid of the Binance's collapse, then immediately withdraw your assets from this exchange and sell all their tokens, if you have it. That way you are as safe as possible. As for the Binance, the bankruptcy of this exchange could cause such irreparable damage to the entire crypto industry, which is hard to imagine. This is possible precisely because Binance has received a very strong influence. Here, too, decentralization is vital, that is, it would be better to have many small exchanges than a few large ones, like a FTX. The collapse of which is terrible.

royalfestus

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Quote from: Vitalik Opinion on exchange security

Having a safe CEX: proof of solvency and beyond
-Balance lists and Merkle trees: old-school proof-of-solvency
-Improving privacy and robustness with ZK-SNARKs
-Proof of assets
-Plasma and validiums: can we make CEXes non-custodial?
-Conclusions: the future of better exchanges: In the longer-term future, my hope is that we move closer and closer to all exchanges being non-custodial, at least on the crypto side. Wallet recovery would exist, and there may need to be highly centralized recovery options for new users dealing with small amounts, as well as institutions that require such arrangements for legal reasons, but this can be done at the wallet layer rather than within the exchange itself.

This is the link to the writeup= https://hackmd.io/@vbuterin/proof_of_solvency
There will continue to be a lot of factors to consider regarding safety with CEX and it will remain a very expensive issue that not all exchanges will be able to handle. As a result of his recommendation, Binance may adopt ZK-SNARKS.

Darker45

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Can Binance also get bankrupt soon? Yes! Can it get bankrupt tomorrow? Yes! Can it get bankrupt any minute from now? Yes! So everybody should be withdrawing their funds out of Binance. And all centralized exchanges and custodial platforms for that matter, because they all share the same possibility.

There is more than one reason for Binance to crash any minute from now. Yes, it could be about regulation. But they could also be linked to a corrupt or sanctioned government, illegal marketplace, hacker group, and many others. They could suddenly be fined a huge amount. They could suddenly be prosecuted. CZ could be arrested. They could be hacked any minute from now. Or somebody from the inside could steal funds from their cold wallets. Or they might scam exit and vanish into thin air.

My point is that for as long as your funds are not under your sole control, it is always possible to lose it any second.

albon

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I advise the OP, not to make your expectations high regarding central exchange platforms. Binance could go bankrupt one day, everything is expected, but this does not mean that it is an unsafe exchange, but rather it is one of the largest and safest platforms that the crypto market has known, and they have reserves for sudden cases and financial liquidity estimated in the billions, frankly, after the cases of hacking that happened to the exchange platforms during the past years, it made me take care not to risk my currencies in central exchange platforms, as they are vulnerable to hacking, bankruptcy, and to closure. I always assume the bad things so that I do not lose because of my blind trust.

Husires

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Ordinary people like you and me do not have access to detailed information that no one knows except for the big investors who have access to the financial statements and have a team of accountants who can know all the things and achieve a comprehensive and detailed investigation.

If a recession occurs and the monetary tightening crisis intensifies, we will see more complacency from more platforms that go bankrupt, and therefore all options are open.

royalfestus

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Am afraid war might be coming on binance because institutions and governments are beginning to feel CZ is getting too powerful in cryptocurrency. Some inside information from binance establishment said it was more of a power tussle and greed. UK is going after binance at the moment and CZ has a case of $8 billion money laundering. There are indication that the allegations will fuel sending the company out of UAE, after so much investment in the country. My only concern is the negative news are coming from those who are not friends with binance.

jossiel

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This past week, it just proved that anything can happen to an exchange as big as FTX. And let us say that Binance is the giant for crypto exchanges, you just can't be sure how steady they are.

The market is very volatile and crypto market can crash as low as we can imagine wiping out the entire market. I saw closure announcements and with this thing on FTX, if someone will expose activities that haven't been known by the people.

That billions of money they have can be wiped within less than a day.

jostorres

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Quote from: Marykeller on November 12, 2022, 06:32:59 PM

Crypto is getting scary day by day. Is no longer the safe haven investment we all know. Only this year alone, crypto investors have lost millions of dollars out of their crypto investment. The first one was Luna, and now we are hit by another one. Who knows what the next attack on crypto would be or look like? Unknown to everyone right? With all these crypto attacks, this is why you should invest with your spare money and never leave your coins on a centralized exchange. No exchange or altcoin is safe again. The impossible is now becoming possible in crypto

Even before, I don't really consider crypto as a safe heaven because of their volatility and there are also unexpected events like we had recently which can affect their price but for those who believe it is, I think their views about it will now change. People will now be more cautious than ever. If there are losers then what about the gainers?

There are traders who are still earning despite of the bears and the crashes that we are experiencing but for those who invest for long term, they can also benefit buy buying more coins. Don't say that exchanges and altcoins are not going to be safe again. What about binance and others? And what about eth and others? We shouldn't over exaggerate things shall we?

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