Topic: Can Binance also get bankrupt soon? (Read 443 times)

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.

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.

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

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.

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.

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.

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...

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.

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.

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..

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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?

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.

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.

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.

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.

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.

Binance is ready to cooperate with regulators and they very often agree to all their requirements in order to be able to work in as large territories as possible. It seems that they are trying to keep all the limits of prudence, but this still does not mean that this exchange is completely protected and will be able to avoid bankruptcy in the future. You are right, huge banks and pension funds go bust when times get tough and I think they are much stronger in many ways than crypto exchanges.

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.

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.

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. 

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.

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.

https://twitter.com/Crypto_McKenna/status/1591660787210530817?s=20&t=W3vzRh7pxLIUt6_ZMHAOeg
Is 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.

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

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.

I don't think any exchange is too big to fail. Binance is one of those companies that looks like it has risky enough products that they'd end up closing down parts of the page and liquidating user funds to cover other bits (earn, futures and margin would probably be the most at risk of this type of thing - in that order).

Binance could also face problems ftx did such as hacks and poorly managed investments (we've seen the second one already but not to a huge extent - they don't back many popular collateralised tokens though which might protect them from some things that companies like ftx and coinbase might have been more vulnerable to).

I think the situation that will happen if that happens is that some dirt would be brought up or something and then they would be unable to avoid it, it will definitely create that fear among the crowd, thus having a downfall of the exchange itself. It just that the unpredictability of people with their investments could have a big impact towards the price and that's definitely going to be how it will turn out. I do hope it wouldn't happen to the biggest exchange. As long as they would be away from potential detrimental issues, they would be fine.

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.