Although Binance is a juggernaut, but it doesn’t mean that they are already immune to future circumstances. They are not exempted from having troubles of any kind whatever that is, especially hacking incidents. Hackers would always find ways to outsmart the security measures like they’re one step ahead as they kept improving their skills to find a backdoor.
Binance might be the best and popular cryptocurrency exchange in the world, but they’re not perfect. CZ isn’t perfect. No one’s perfect. We just have to deal with it and accept the fact that nothing in the world of crypto exchanges are permanent as they are still vulnerable towards being taken down by any means necessary, and Binance is not an exemption.
Topic: Can Binance also get bankrupt soon? - page 2. (Read 443 times)
Many times they are also working on various extensions and projects which calls for additional investment. So when such down turn comes then they loose lot of money. Then it turns to such incidents.
Are you inferring that they either used customers money for other investment without taking precaution on the bear that came? Well anything is possible with centralized exchange and I think investors could be planning on taking out their coins from binance just to play safe. We have to be smart about the coins we have and keep to ourselves, I know binance CEO CZ is trying to keep his business clean but we have to help ourselves. Some exchanges have also gone down in the past like I remember bitfinex, coin exchange etc.
Yeah sure market can go crazy and now it’s impacting the business at alarming rate. The fall of exchanges is due to the fact that they are getting the business deprived due to bearish market. It seems that major exchanges if took little wrong management then it could go on their shoulders and turn them down just like FTX. I am not even sure about binance now considering bearish burden.
Many times they are also working on various extensions and projects which calls for additional investment. So when such down turn comes then they loose lot of money. Then it turns to such incidents.
Many times they are also working on various extensions and projects which calls for additional investment. So when such down turn comes then they loose lot of money. Then it turns to such incidents.
the possibility will always be there. but I hope all exchanges learn a lesson from the FTX case. and it looks like some Exchanges have started to take steps so that they don't suffer the same fate as FTX. and it looks like every exchange will start to be more open. some have even implemented Proof of Reserve (POR). but still people's trust in CEX is getting a little less. so DEX will again be an option. I have also secured my assets from several CEXs to my personal wallet. because we don't know which other CEX will have the same fate as FTX. if only Proof of Reserve (POR) was implemented earlier by all CEXs. so I think an incident like the one that happened to the FTX can be avoided.
Yes, anything is possible, but with what binance is doing, I believe they won't go bankrupt anytime soon. Especially proof of reserve, they're POR proponents so I think they've prepared well in advance. Sooner or later the rest of the exchanges will have to publish assets like binance, if any of them can't, they are having the same problem as FTX. Binance does all of this to strengthen and enhance its position.
There are some rumors about houbi, it is best in a sensitive time of the market, we should withdraw all assets to a hardware wallet or non-custodial wallet.
https://twitter.com/WuBlockchain/status/1591641783683133440
Binance may go bankrupt one day but not now because Binance's position is still strong and holding up well.
Maybe regulation could lead to the collapse of Binance but I'm sure CZ will try to approach the government to get approval for his business.
And if CZ's approach is successful, he can keep his business and stay where he is today, even if he has to pay huge costs to the government.
Binance strives to maintain the trust of the investors who join them.
Maybe regulation could lead to the collapse of Binance but I'm sure CZ will try to approach the government to get approval for his business.
And if CZ's approach is successful, he can keep his business and stay where he is today, even if he has to pay huge costs to the government.
Binance strives to maintain the trust of the investors who join them.
Quote from: Mckenna
Binance and Coinbase are both incredibly safe CEXs to store funds on.They do not employ fractional reserve ponzis and trade with users funds (this is rare). Paranoia is good except from when it becomes too much impairing decision making. The above are good
https://twitter.com/Crypto_McKenna/status/1591660787210530817?s=20&t=W3vzRh7pxLIUt6_ZMHAOegIs this a good reason to rely on these exchanges for portfolio security?
NO.
Your portfolio should be sitting in your wallet, not on accounts that belong to other people. You are never safe on any exchange and this was true in 2013 when GOX was going insolvent, later when bitfinex was hacked and it is true now.
This is what bitcoin was made for so people can hold their money themselves and things like the recent losses of funds do not happen but people like to over complicate things and make life harder for themselves.
There is no impossible thing in this world, even the future of bitcoin is not 100% certain, if one day binance collapses, it wouldn't be too surprising. But I don't think the government will make binance go bankrupt. CZ has stated in favor of the regulations, he has no intention against the government.
Everything has a risk, once it collapses they will make up thousands of excuses later. As we all know investing in cryptocurrencies, we face a multitude of risks from hacks, scam projects as well as bankrupt exchanges...Therefore, you should only invest with money that you can lose and should diversify your portfolio, not put all your assets in crypto.
Everything has a risk, once it collapses they will make up thousands of excuses later. As we all know investing in cryptocurrencies, we face a multitude of risks from hacks, scam projects as well as bankrupt exchanges...Therefore, you should only invest with money that you can lose and should diversify your portfolio, not put all your assets in crypto.
If I learned one thing about crypto, it is that anything is possible. Can binance go bankrupt? Why not... Soon? Why not... FTX went bankrupt out of the blue. Why wouldn't binance do the same thing? How can one be sure that CZ isn't a lying sob?
Nobody will ever be safe unless everybody keep their coins in cold/offline wallets. No matter how big or trusted a crypto exchange is, it may always fail or get hacked. FTX wasn't the first one to get hacked and it won't be the last.
Nobody will ever be safe unless everybody keep their coins in cold/offline wallets. No matter how big or trusted a crypto exchange is, it may always fail or get hacked. FTX wasn't the first one to get hacked and it won't be the last.
But all of that aside, I don't think Binance is in danger of gong bankrupt anytime soon. They're probably one of the exchanges that very much has their act together--especially when you compare them to a lot of these smaller ones whose ownership and other details are opaque.
the possibility will always be there. but I hope all exchanges learn a lesson from the FTX case. and it looks like some Exchanges have started to take steps so that they don't suffer the same fate as FTX. and it looks like every exchange will start to be more open. some have even implemented Proof of Reserve (POR). but still people's trust in CEX is getting a little less. so DEX will again be an option. I have also secured my assets from several CEXs to my personal wallet. because we don't know which other CEX will have the same fate as FTX. if only Proof of Reserve (POR) was implemented earlier by all CEXs. so I think an incident like the one that happened to the FTX can be avoided.
No exchange is safe.
They might say they are safe and have all the safety features and procedures in place
but by putting your funds in their care you are handing over control to them.
They offer 2FA protocols to make us feel confident that funds are safe but it's an illusion.
It wasn't so long ago when Shark Tanks Kevin O'Leary was saying FTX was a safe investment.
The only thing that is safe is Bitcoin, not all the periphery services connected to it in relation
to trading and the markets.
They might say they are safe and have all the safety features and procedures in place
but by putting your funds in their care you are handing over control to them.
They offer 2FA protocols to make us feel confident that funds are safe but it's an illusion.
It wasn't so long ago when Shark Tanks Kevin O'Leary was saying FTX was a safe investment.
The only thing that is safe is Bitcoin, not all the periphery services connected to it in relation
to trading and the markets.
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.
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.
Centralized exchanges no matter how big their role in the crypto market if they want to survive then government regulation must be a peaceful solution. Is not it? because if Binance tries to play with fire in the context of autoregulation all will feel the dire repercussions. If you can think of alternatives to stay safe, then investors or traders with large finances will immediately secure their assets in their respective wallets. Don't get me wrong, this issue will still be hot until there is a regulation that Binance agrees on so that it continues to operate safely. There are of course two solutions: to make peace by accepting the regulation and elevating it to the personal data verification stage or to oppose it?
The growing higher rate of sophiscation by hackers is making exchanges vulnerable to hacking particularly when it involves an insider, if FTX can be hacked and millions of coins stolen I don't think other exchanges can as well be safe Binance inclusive, I am very sure FTX must have spent millions of dollars on their firewall to be safe and to prevent their exchange from being vulnerable to hackers despite those measures, they were penetrated by the fraudsters, I believe the way out is for crypto hodlers to secure their huge Amy of coin in a hardware wallet and leave tradeable amount of coins in their respective exchange.
No crypto exchange is "too big to fail" and no crypto company is safe from going bankrupt.
Crypto exchanges are basically banks. Many banks have went bankrupt in the past, because of "bank panic" and negative news on the financial markets. That's why the governments created the central banks, as an extra layer of security that could save the financial system in times of insecurity and fear. The crypto industry doesn't have a central bank. The crypto industry doesn't have the governments supporting from behind the scenes. If Binance gets shaken by too much FUD, I'm sure that many investors will try to run away from there with their coins, creating liquidity problems. There's no crypto central bank to step in an solve those liquidity problems and going bankrupt would be the inevitable way for Binance.
Crypto exchanges are basically banks. Many banks have went bankrupt in the past, because of "bank panic" and negative news on the financial markets. That's why the governments created the central banks, as an extra layer of security that could save the financial system in times of insecurity and fear. The crypto industry doesn't have a central bank. The crypto industry doesn't have the governments supporting from behind the scenes. If Binance gets shaken by too much FUD, I'm sure that many investors will try to run away from there with their coins, creating liquidity problems. There's no crypto central bank to step in an solve those liquidity problems and going bankrupt would be the inevitable way for Binance.
Centralized Exchanges are one of the points of failure for the whole Crypto currency system, because it can be targeted by it's enemies. Examples ==> Government sanctioned hacking or sabotage / Government regulations / Traditional Banking systems..
These Exchanges are a threat to the Banking system, because they cannot allow other services to disrupt their business. (That includes money laundering practices)
Binance is a centralized Exchange and it's already being targeted by the government ....so it is a question of time... not if it is going to happen.
These Exchanges are a threat to the Banking system, because they cannot allow other services to disrupt their business. (That includes money laundering practices)
Binance is a centralized Exchange and it's already being targeted by the government ....so it is a question of time... not if it is going to happen.
About the government attacking Binance, I think we all saw that already. They tried to corner them using the lack of headquarters by Binance and if anyone wants to file a case against them there's nowhere to go. It was not successful.
Now about investors backing out because of lack of trust, it's not like Binance grew because of them, it crawled its way in with many difficulties and I doubt that kind of reason will end their service. They have different coins in stock from those who applied for listing.
Now about investors backing out because of lack of trust, it's not like Binance grew because of them, it crawled its way in with many difficulties and I doubt that kind of reason will end their service. They have different coins in stock from those who applied for listing.
this is a possibility that could happen but is very unlikely, since the first conversation CZ (Changpeng Zhao) with his colleagues at the poker table and founded in 2017 until now it has become the largest crypto exchange and is ranked No. 1 in the world with a wealth of USD 65 billion so that it becomes one of the richest people in the world thanks to its business in the crypto world, I think this is very unlikely to happen on the Binance exchange, Binance's reputation is an exchange with the highest level of trust in the crypto world. I'm sure people like Chanpeng Zhao have a lot of treatment plans to anticipate every problem. what happened to FTX will be an important lesson for Binance's future progres.
Quote from: Mckenna
Binance and Coinbase are both incredibly safe CEXs to store funds on.They do not employ fractional reserve ponzis and trade with users funds (this is rare). Paranoia is good except from when it becomes too much impairing decision making. The above are good
https://twitter.com/Crypto_McKenna/status/1591660787210530817?s=20&t=W3vzRh7pxLIUt6_ZMHAOegIs this a good reason to rely on these exchanges for portfolio security?
Binance, Coinbase, literally any of the major exchanges can topple over if at any moment user withdrawal demand exceeds the immediate liquidity these exchanges have.
People don't understand -- you deposit funds into these exchanges, they treat it as investment funds. These institutions will invest user funds into whatever project is deemed worthy independent on your consent. Very quickly, your trust extends beyond the exchange.
Crypto shouldn't be treated as a monolithic but unfortunately it is. I tend to use "crypto" as a blanket phrase when the reality is not every coin is created alike. Trash altcoins, their associated centralized exchanges and properties, should be in one category and Bitcoin should be in another.
People don't understand -- you deposit funds into these exchanges, they treat it as investment funds. These institutions will invest user funds into whatever project is deemed worthy independent on your consent. Very quickly, your trust extends beyond the exchange.
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
Crypto shouldn't be treated as a monolithic but unfortunately it is. I tend to use "crypto" as a blanket phrase when the reality is not every coin is created alike. Trash altcoins, their associated centralized exchanges and properties, should be in one category and Bitcoin should be in another.
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
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