Topic: Could Binance Collapse? (Read 268 times)

First off, Binance could collapse, prosecuted or not. FUD or not, it could happen. It's always a possibility not just with Binance but with all centralized exchanges. If it happens and you're into BNB or BUSD and your funds are kept in Binance, then expect that you'll lose all of them. To avoid that risk, you only need to stay away from those risky altcoins including stablecoins and choose self-custody. It ain't that complicated at all.

It's plain hubris for Binance to equate itself with crypto. Or is it blackmailing? But if it were true that the entire crypto would collapse if Binance collapses, then let them all collapse. They're not meant to last, anyway. But Bitcoin will definitely stay. It isn't centralized. There's nobody to prosecute or arrest. There's nothing to shut down or raid or whatever. The price will definitely be affected, but only temporarily. Its survival means it could solely gain back the trust and confidence of everybody just like when it started, and all the money that could have gone to any altcoin would go to Bitcoin, as in real Bitcoin, not paper Bitcoin, not IOUs, not mere numbers.

Binance could fall, but not yet. I disagree with CZ's warning to the US authorities that if they're prosecuted the whole crypto market will fall. It's quite impossible for everything to fall alongside binance if it collapses anytime. The only effect is the fall in price, yet the market will progress with or without binance. The exchange is too large with many traders across the global, but the truth is anything can happen in cryptocurrency. That's why users must not only diversify their assets, trading with different exchanges is recommended to reduce or minimize high rate of traders utillizing 1 exchange. So that the market won't depend deeply on one exchange like Binance. Which may cause big losses to the market if they get prosecuted or collapses.

Investors should never leave their coins on exchanges, it should be on their noncustodial wallet instead, preferably cold wallet or hardware wallet which are safer.

That is how it do starts, that people will be withdrawing their money from an exchange that can lead to collapse of the exchange, but the amount withdrawn on Binance is still not significant enough and Binance daily trading volume is still very high which is over 39 billion in 24 hours now, but I saw it dropped from over 50 billion last week. I do not still think this could bring down Binance because nothing yet that is enough to bring Binance down to be point of collapse and insolvency.

Binance is centralized and just a business, it is better to avoid what could happen to your coins if it collapse. I am not saying Binance would collapse though, but we should always leave all these sweet talks about centralized platforms that could let our coins to be lost. Only trading funds which is low should be left on an exchange.

In recent times, especially after the fall of FTX, there has been a lot of scare about exchangers. FTX is one of the remarkable exchangers. When such institutions go bankrupt, it is natural for investors to lose confidence in almost all exchanges, including Binance. Already we are seeing some big investors withdrawing their assets from the exchange. If this situation does not improve, the number of investors will continue to decrease and the exchanges will be in danger.

There are some executives at several major crypto firms do not think Binance is headed for bankruptcy. They believe that Binance is still very strong. They say Binance holds large stores of bitcoins and liquid assets. As a result, it would be wrong to call it on the verge of bankruptcy. Moreover, Binance owner Changpeng Zhao himself said that Binance has the power to overcome any crypto winter. Consequently it goes without saying that Binance is still a strong exchange.

I think that nothing is impossible in the crypto industry. Even such a big and famous exchange as Binance, which has huge resources (if any) can fail. You don't have to look far for examples (FTX). I believe that such a scenario can't be ruled out and it would be better if we prepare for this in advance and panic in attempts to return our money at the last moment if a collapse occurs. If the collapse of the Binance happens, then the damage to crypto currencies will be huge, due to which many projects will simply cease to exist, and the entire industry will slow down in development for an indefinite period. For ordinary users, this will also be of little pleasure. It will be too late to save your money after an accident, so it is always better to prevent (prepare for a negative scenario) than to try to solve problems when they arise.

It is impossible to predict events, especially when don't have insider information. Perhaps all this information in the media about the possible problems of Binance is far-fetched and everything will work out.

I absolutely agree with you! Of course that a few CEXes outhere aren't reliable at all but not all of them are like that. There will always be companies going into collapse and this may not even be due to a question of being a direct scam but due to incompetence, a hacking blow or simple inaction to adapt to the ever changing crypto environment, especially when it comes to security. And when something like the FTX event happens, it will give loads of fuel for the media to FUD.

Yes, even a government can collapse, exchange collapse is normal. But to say that with current Fuds will cause binance to crash, I'm sure that won't happen now. In the last few days, the amount of withdrawals on Binance has been huge, and as far as I know, more than 5 billion dollars have been withdrawn from the exchange, but so far no users have had problems. It shows that Binance has enough resources to handle FUds and will pass.

alright, could be that the source of this article is just trash. regarding this article its not true: https://cryptoslate.com/binance-denies-us-doj-looking-to-prosecute-the-exchange/

Please don't read and post any articles form this shitty bsv propaganda coingeek trash website.
I really don't care what they think about Binance and you don't need to geive them free advertisement unless you are paid to do that  
Can Binance collapse? Sure it can, like FTX, Mt-Gox and other exchanges stopped working in past, I don't need Craig Wright fake journalists to tell me that.

Don’t dream of this scenario to happened because it will be more terrible than Luna and FTX fall since Binance controls the majority of crypto assets in the whole crypto market. Most of the traders including whales use this exchange for there trade and imagine if this assets will be forced to sold on the market just to pay all there customer when they file bankruptcy. This scenario will create chaos and distrust to CEX in general.

I believe DEX will rise but it will take a lot of time to make people trust again an exchange and crypto in general due to this big time loss that will happened in an event like this.

centralized exchange whose owner's identity is known, can collapse at any time for various reasons especially if the government targets that person to be prosecuted, but binance has so far been able to survive because they know how to run an exchange business and looks capable of maintaining user trust.


I know your concern and right now the only thing we can trust is bitcoin because bitcoin is a pure decentralized coin, I have some satoshis and have no intention to sell it. btw, if we look at the current BNB price -10% in 24 hours but trading volume is up 77% in last 24 hours, it seems someone is trying to manipulate it.


chain reaction? of course I'm sure it will happen, just look at how the reaction was when the news about the FTX collapse occurred, several CEXs also said they were bankrupt and closed. and if binance collapses then we will see a deeper red market.

any business could and can collapse for any reason. yep any reason. yep too many reasons to even list.

that said the chances then become less or more depending on factors

..
now lets delve into this binance saga

both the DCG (sister to FTX) and the BSV scum both have a hate of binance for different reasons. so their 'news media' platforms coindesk and coingeek respectively will pile gasoline onto the fire of sensationalising stories.
 

so lets look into the story
ok so it concerns some old news where the SEC wanted information concerning some transactions in regards to some illicit deposits summing over $2b from 2017-2020

the thing is. a exchange cannot control what gets deposited. it just arrives by customer decision not binances decision.
(you dont know what junk mail the postman wil hand you until the postman hands it to you)

but once arrived then it becomes binances opportunity to scrutinise what it received and handle it accourdingly

and its this handling which is being questioned. the SEC is probing for compliance standards..

to which binance responds
https://www.binance.com/en/blog/leadership/inside-binances-fight-against-crypto-crime-5422427314690193337
not verbatim
it also revamped its KYC requirement in 2021 to meet the standards

though this is a after effect caused by the processing of $2b of funds that came from darkweb hackers
..
the SEC is also probing binances BNB platform because it was not ratified by the SEC as a security, because binance did not register it as a security

it passes the test of a security, and as such should have been licenced as one in its own right. however back in 2017 the SEC was refusing to accept certain things and not allowing registrations.

EG the SEC refused binance international2017-19 a US SEC licence due to lack of US headquarters to be in their jurisdiction. which lead onto the birth of binance.us in 2019 just to get licences in the US

---

my view in short
the SEC for years has been fumbling around with old rules that prevent companies from knowing what compliance should look like and SEC refusing to give licence/compliance advice.. and then crying that businesses are not licenced and compliant.

for instance
by binance international not being SEC licenced. it is not in the membership circle to have the portal to file SARS(suspicious activity reports) to the SEC should binance international see suspicious transactions it has received.. thus SEC cries that binance did not report any suspicious reports.. though binance international was not in the SEC portal to be able to.
(chicken vs egg)

 Well, let's hope against Binance experiencing a collapse even with Changpeng Zhao CZ facing a prosecution over allegations of compliance with anti money laundering laws and that in the past few days, the rate at which customers have been withdrawing their funds is quite a cause for concern.

 Although it's expected of investors and customers to experience FUD since the issue of FTX still looms in the air and I won't blame folks who would hastily withdraw their funds at this period.

Wrong.
With the collapse of MtGox that happened nearly a decade ago, collapse of centralized exchanges became a sure thing. Now if some people have chosen to forget that and think it can not happen to other exchanges (Bitfinex, Cryptsy, Bittrex, Poloniex, ....) that is their own naivete.

To answer your question, Binance could collapse and I have been saying this ever since it started growing and it still wasn't as big as other altcoin exchanges like the scammers called Bittrex. I don't see anything changed except the size of their operation.
However, the current drama about CEXes in the media is 90% FUD.

I guess this is bragging too much or this is simply FUD. I would say yeah, Binance is one of the Top crypto exchanges in the crypto world but that wouldn't mean that if Binance was taken down the whole crypto ecosystem would collapse over their head. It would be more like MTGOX and it would bring the industry to its knees but it wouldn't be the end of it. It would be a terrible shakedown, but mostly, who would be affected would be those shitty cryptos and other centralized cryptos that are good for nothing.

The story of crypto is full of FTXs and each time that happens the real cryptos get out even stronger. Even so, I do not think Binance will go down. What can maybe happen is a US clampdown on the company. And if that so happens Binance can easily flee to another country and keep its operations running elsewhere.

I think all these talks about binance going down are just baskets that holds no water. These are just cries of a drowning ship wanting others to get drown with them which in no way is possible. Binance has made name for themselves so why don't they do the same by making a good name for themselves instead of wanting others to sink with them.  So far to the best of my knowledge, binance has been up and doing in the blockchain industry as a decentralized exchange.  For years since her inception, there has been lots of drastic changes in the decentralized exchange as a result of the good policies implemented by binance which forced others to follow make such on their platforms.
Binance has made many centralised exchange sit up in the course of rendering Services by their Reformation policies and development. A niche binance has created for themselves which will be very difficult for anybody to pull down. The fud peddled by rumour mongers will definitely be invalid.

From my personal point of view, I don't want Binance to collapse, because this is a channel for me to realize my cash, but there are indications that centralized exchanges have received a huge impact. The coin withdrawal movement is more enthusiastic, which also indicates that centralized exchanges are facing great challenges. There may also be a chain reaction.

I saw similar news again today, and felt like another huge thunderstorm.

It's totally possible, but as far as I know, we haven't seen any decent evidence of Binance being insolvent. Most are just rumours and speculation.

Also, stop ignore anything from CoinGeek. It's owned by the shitstain that is Calvin Ayre.

As far as I know, Binance is currently the number 1 market in the world. but there could be a collapse if for example the number of people interested in binance decreases. and maybe later another market name will rise. but in my opinion it will be difficult for binance to collapse because people are interested in binance
a huge amount. but for people who invest in bitcoin, of course it will be safe as long as the bitcoin is transferred to the wallet. and I think now people will switch to bitcoin because bitcoin is the safest.

I was not aware of this news, which is 4 days old, and I don't like Binance's response. I find it hard to believe that Binance is going to fall but never say never. The way they are defending themselves, which seems like blackmail, doesn't seem like someone who is 100% sure that if their finances are reviewed nothing will happen. And on the other hand, the authorities have to investigate Binance regardless of the effects that the investigation may have on the cryptocurrency ecosystem.