Topic: Can Binance also get bankrupt soon? - page 3. (Read 501 times)

That's an absolute truth--if no bank is too big to fail (which is true), you'd better believe there's not a single crypto exchange in existence that couldn't fail based on its size. 

All of this shit that's been going on for years, from Mt. Gox to the Terra Luna debacle right on down to FTX's ship going down is bad for crypto in general, and certainly for bitcoin.  When people start losing money because of exchanges and various companies that are involved in the crypto space, it attracts the attention of lawmakers.  And what's the job of lawmakers?  It's to make laws.  We're never going to have fewer laws as far as I can tell, only more, and because of all of these shenanigans those lawmakers are going to crack down on what's essentially been a very free market.

In fact, I'm very surprised that crypto has been allowed to exist with such little regulation for as long as it has.  Having said that, I don't know what regulators are planning on doing, but I suspect it's going to make trading a lot more cumbersome.

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.

it could happen any time.
Even though Binance is the number 1 largest market known throughout the country, it cannot guarantee the safety of Binance.
but i think binance in next few years still have good security. but I don't know if there will be another drama after that.
as happened to binance in the past that binance was hit by a hacker attack. that's one example that there is no guarantee of security from binance and one day it will definitely go bankrupt

Binance can bankrupt but we can't say surely it will soon. A small mistake can bring unstoppable results then what seems impossible can become real. Not your key, not your coin! Therefore I'm using those platforms only for exchange for fiat to crypto currency. I would recommend it to anyone who hasn't watched the Margin Call movie for understanding these situations.

Binance is a giant company. I think it's a little far from going bankrupt overnight. The fall of Binance in this way means a panic that will affect the entire market and many currencies will collapse.
Also, Binance has business licenses in countries around the world, secures itself through insurance companies, and has sufficient liquidity reserves in emergency cases. Binance cannot be compared to the scenario that happened with FTX, and the market size of the two companies is completely different. I understand that there is a state of panic the market is currently going through.

Binance is a big name in cryptocurrency, It will be difficult for them to bankrupt, but not impossible. Some people never expected FTX to suddenly just be choked out, but it has happened to our amazement. So always expect that anything is possible with these exchanges, expect that everything is possible regardless of the name they have, and do the needful in not choosing to keep your coins there.

There’s a lot of fud and panic going on, and with this anything can happen.
Yes, Binance have their solid back up plans if something bad happen but that doesn’t give any assurance that we will be safe. There can also be an inside job and manipulation that might ruin Binance’s reputation and one thing is for sure, if Binance will experience the same faith like FTX and LUNA, then that can trigger another bear market because the holdings of Binance is too huge and that can easily affect the whole cryptomarket.

Obviously, you cannot deny the possibility of this, They have shown proof of having enough holdings but obviously, there has never been a complete audit as to whether or not they have the complete backing of all the assets, and that also in reliable currencies, not just some token value of which can drop anytime. In fact, this is risky because just today I saw a tweet from CZ criticizing Bloomberg for writing false info about them online, but think what if that info is actually true and they are having their holding in BUSD only, now in that situation it's not that difficult for anyone to compromise BUSD as well, and even Binance can move towards bankruptcy.

Anything is possible to happen.

The thing with FTX was expected and we thought of them as one of the biggest exchanges out there. But because of it, it only means that any exchange can collapse anytime.

And that is through a weak management that will lead the company to its falling down just as what Sam did to FTX.

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.  

I think it makes sense to bring this up as there is not really an exchange that I think will last forever, at some point all of them will fall or they will be bought by another even bigger entity, and after the demise of FTX it makes sense that people are worried about the future of Binance, however I do not think this is something which can happen in the short term, Binance for the time being seems like it is in a solid enough position, however if you are worried about this then get your money out of their exchange as soon as possible and never use it as your main wallet.

We saw something like 6-7 billion pour out of FTX in the span of a couple weeks, which had been thought unthinkable to such a large exchange. Anything is possible and if the jitters get loud enough we could potentially see the same size run on Binance. That being said, the amount they must have profited on fees over time is ridiculous and if they invested that sensibly then they should have a very good buffer against bank run type events. I'd be more concerned about hacking than a similar drain of resources.

I highly doubt it; Binance holds the majority of cryptocurrency assets while they also claim to have a SAFU of $1B (Secure Asset Funds for Users) in place, something that I didn't know until another user here pointed it out. In my opinion, if Binance goes down for whatever reason, so will the majority of cryptocurrencies, leading to a tremendous impact on the market. While I trust Binance, and I don't think there's any reason to worry about our funds, we've already seen that there are no guarantees when it comes to the safety of assets. I'll be withdrawing half of my money from Binance soon, but for a different, not relevant to the topic, reason. Generally, I'm satisfied with Binance's services because they're extremely convenient.

So in summary, it's unlikely Binance will go bankrupt or shut down, and it's wrong to compare it with Luna. Luna wasn't an exchange.

Absolutely yes. But it will took a whale greater than CZ to make Binance bankrupt like what happened to FTX. FTX and Luna are billion dollar company and they don't just magically failed without the magic touch of CZ. Everything in crypto is connected to CZ because Binance is always venturing on new promising project. This only means that Binance always received the source news in crypto on what’s gonna happened before it will release to the public that’s why they are always safe on this kind of shit show.

The only way Binance will bankrupt is when regulators push them to the limit and charge them with tons of cases that worth a fortune to settle. But it's impossible for Binance to suffer same method of down fall since they don't owe anyone on crypto space since they are an early adopter exchange in crypto before the marketcap explode exponentially.

Binance is seeking licenses from a different country, Binance already know that government regulation can pull them down or make their hard effort go to waste.  So they are applying for licenses in different countries where they can easily expand their operation if they got approved.  I had the idea because Binance is already applying for license in my country and even helping the government in the promulgation of cryptocurrency knowledge.

Yes, there is a possibility that Binance will get bankrupt but I do not think it will be soon.  They are doing great at this moment and there is yet any issue that can make their exchange go bankrupt overnight.

Any company can go bankrupt, and IMO the risk is higher during the economic recession. If it's a good company, then it's perhaps less likely to fail and more likely to reimburse customers if it fails, but nobody is protected. I'm guessing that many thought "not your keys, not your coins" was a radical pro-Bitcoin statement because surely reputable companies do have all the money their clients gave them and nothing bad can happen. I hope the FTX situation will convince more people to store their own coins. I don't think Binance will go bankrupt, but I wouldn't say it's impossible. And why store coins there if you can just download Electrum and store your coins there, for free, without ever worrying that someone will take them away and then not give them back because this way nobody can take them away?

Good lord, I can't imagine the topics that we are discussing these days. It was really really pure around 2017 and after that things are smashing like very crazy these days.

Crypto is really seeing bad fall here, not to mention and stress on the centralized organizations only. I think that's what we should be learning from the past and current crashes that if your money is in someone else's hand then you are at the risk of loosing it all and ending up your life savings with it.

Have you guys noticed that it never happened on mega scale with bitcoin if the coins were put into the wallets, either hard or cold? They are heavily safe there and unless and until someone loose their keys or forget the keys then they are all good. Even if someone loose it, the coins are still there untouched!!

Times come to remind every crypto guy to shift to wallets, secure the money, and use p2p trade methods.

Makes me say one more time Not your Keys, Not your money. #NYKNYM

Complete Jokes.
History tells you that MT. GOX failed people and the users, stole millions, got the market all red in 2014. Recently should I just say yesterday, FTX moved people's funds, retirement plans and long term Bitcoin holding's and savings without proper communication with the user's, this is wickedness, they should rot in a special part of hell, I mean the hottest part of hell if their is one.
Binance is no exception, they can start withdrawal anytime soon and pause users from withdrawal also. Don't be a dick, get your coin's out. Yes, might not be too fast, if I should predict in the next 6 year's yes, they will go Bankrupt

It will not be only your concern. It is everyone concern because binance has taken the whole exchange business and so many are hodling coins with them. It will be a big problem for the crypto world if this will happen because over 600 coins are there in the exchange.


I think serious regulation will begin to happen and the country who have interest in cryptocurrency can begin to have there own binance like binance.us that is operating in USA. This can help for more close monitoring of exchange

I wish that was the case and people move their funds out of centralized exchanges but that won't happen, like it didn't happen in the past. Just look at all those exchanges reporting how much user's funds they have and you will see that nothing much will change in that regard.


I don't se much panic around here.


CZ can be trusted? Good joke. Trust no one.

The next issue with this FTX of a thing is people/ investors will start thinking that every centralised exchanges and projects will face the same fate.

We all need to calm down, what has happened has happened, let's stop panicking for no reason.

Binance exchange did us all a big favour, imagine this FTX scandal remained a secret till next year where every thing should be getting back to normal, it will be much more worse than it is right now.

I as a person respect what Zhao did, he can be trusted.