Topic: Is Binance poised to become a monopoly? (Read 334 times)

I think that Binance won't be able to become a monopoly as more and more not-so-big exchanges rear their heads and expand. HitBTC as an example. now offers a new Crypto Wallet in addition to its services. They are developing and expanding, which is a good sign, in my opinion.

Well, I remember that Coinbase was already popular back then but it's mostly focused on its US market and that's why other exchanges have managed to capitalize on the situation because back then, the coins supported by Coinbase were also few and they're not an exchange during that time but an online wallet. Binance is heading for more upgrades and changes and I think that we have to bear with it if you're a Binance user or they might fluke with some changes that might lose them customers in the future, we don't know.

I do even remember that Coinbase is already existing on that time but didnt really get that much attention and popularity but still nowadays it is really running and operational.
Well, its expected for something which is heavily centralized compared into those past exchanges where they are anonymous and not really that regulated.
On the time that they had made themselves abide with regulation then they had been started to get some criticisms and then Binance came where people had
seen this to be looking interesting and they had just been overtaken in speaking with popularity and relevance But now Binance is starting on heading up
that way or shall we say the normal cycle of things on where or when government is starting to get involved.

Binance tried to buy FTX, which was the world's second-largest crypto exchange. If the deal would've gone through, Binance would've become truly unstoppable. Even now with FTX's collapse, Binance has gained a large percentage of market dominance. CZ is a powerful force in the crypto industry whenever you like it or not. This is dangerous, because a collapse of Binance would be something completely catastrophic to the whole crypto/Blockchain industry. It will be worse than the Mt. Gox and the FTX collapse combined.

Crypto is all about eliminating the middleman anyways, so I don't see why people are giving power to centralized exchanges. It's like such entities are the "bankers" of the crypto industry where they can dictate their own terms. This is a step backward to what Satoshi originally envisioned. Hopefully, things will improve for the better as people notice the inherent failures of CEXs. Who knows if the collapse of FTX would serve as a pivotal moment for crypto to turn itself towards full decentralization? Just my thoughts

We're not seeing these statements when FTX was buying failed platforms like Voyager, Celsius, and Blockfi. They were trying to monopolize and even lobbied politicians for the regulations. So far we are not seeing Binance buying any platforms but the CMC.

But CZ seems to be assertive that he even asks coinbase if they have the funds. He is fishing. The guy is counting funds that are not his.

On the contrary, i think centralized exchange contributed to crypto reaching a high potential level (won't say full because we aren't there yet). i can understand the resentment towards centralized exchange due to kyc and all, but with the emergence of centralized exchange, people can easily buy crypto using their local currency. I remember back in 2016 the trouble i had to go through just to buy btc, but things have change for the better. If not for centralized exchange, probably the popularity of crypto will be limited.
imo, i would say centralized exchange help to expand crypto access.



I can understand this point, perhaps the dex should step up their game, do what it takes to push the centralize exchange down the line, so far i don't see any dex putting up a fight. Maybe they should first look into why people (despite kyc requirement) prefer to use cex than dex. There is a major issue that needs to be address, binance is taken advantage of all this to expand its brand.
what about the great crypto pioneers, what are they doing regarding supporting dex to gain more liquidity so that whales can revert to using dex instead of cex.
Instead of other exchanges (dex or cex) stepping up their game and competing with binance, they are rather dying one after the other. I don't know whose fault is that.

Centralizing factors greatly affect crypto's ability to reach its full potential. While decentralized exchanges exist, they aren't as perfect as one thought they would be (limited performance, low liquidity, higher learning curve). The more centralized exchanges and services take control over the industry, the farther we will be towards eliminating the middleman for good. I'd say we've already moved away from Satoshi's original vision. With Binance's quick accession to glory, crypto is set towards a very dangerous path.

Can you imagine Binance falling one day because of negligence, a major hack, or a government shutdown? If that happens, crypto will be doomed for good (although Blockchain networks will still be up and running as usual). Most people are only into crypto because of the price, so a collapse from a major exchange such as Binance will cause a loss of confidence among investors and traders alike. You can see how the recent FTX collapse has set back the crypto industry for a couple of years. No one knows what the future holds, so we can only hope for the best. Just my thoughts

I remember all of those days when they were supreme in the market and they were the top exchanges not until Binance came, and the other popular these days like kucoin, crypto.com, etc.
It's not always that they'll be at the top and when there's something new, the customers will come to it and after trying it out, they'll be able to stay there for long if there are a lot of incentives and benefits.

Most of the people i know already stores them in their own wallet, but that's because they are digitatives that have been using crypto for a long time. We have to remember that most people far from tech-savvy and, these people are not going to store huge or even small amounts of wealth. Even if the skills to handle the sec ops required to secure the wallet is low to us, it's not to lot of people. They need to back their wallet up, encrypt the backup, and make sure someone else knows how to access them in case something happens to them. And they can't lose their keys. These people are way better off trusting CEX, but if they won't they will be cashing out.

I know that people like to think that self custody is the one of the essential points why crypto is popular. But the thing is, we are giving way too much credit for skills that we think people have, and their ability to navigate in crypto world. These people struggle to know how to operate windows os.


Binance will eventually meet challengers, but if crypto starts to grow again, we have room for many more big exchanges blossoming side to side.

Just to remember into those old years about on how Poloniex and Bittrex had dominated the market on which lots had been anticipated and already make out some conclusions that they cant really be dethroned.

Until the time comes where regulation issues had been faced where these platforms had become heavily centralized and that time Binance did came out and people had flocked away into those exchange and stay up on BInance and we are seeing on whats today.

If we do speak about probabilities then its always there, there's no such thing about remaining like forever but the current things that they've been doing is really that
for the benefit on prolonging their dominance on this crypto space.We dont know on how long but lets see it along the way.

It is the counterpart of those hacking in centralized exchanges. People who have been so critical and concerned about these events will make them want to find another place where they can continue trading without anything to worry about. Although the decentralized exchanges are not exempted from this hacking at least, most of its traders get to still hold their funds as they trade and connect their wallets from here and there to different exchanges. It's true that the reign of Binance at the top won't be staying there forever but if they know the formula of sitting and maintaining their position, they can but someday, time will come that it's going to be for another exchange company to rise. But it's a different thing about ranking if it's all about bitcoin, it'll stay there for long.

Cryptos are already known to be decentralized even before but the introduction of centralized platforms and then the regulations lately makes it less decentralized. I don't know if what is that single point of failure you mean but crypto is about eliminating the middle man or the third party.

Satoshi's vision is about escaping slavery caused by banks but you shouldn't forget that many people here didn't care about it but they only care about making more money. Satoshi didn't think that the supposed to be currency that he have created will now function as an asset as well but he or we should be thankful about it as it made btc more popular.

I'm afraid people will continue to lose trust on CEXs due to constant hacks/theft and/or misuse of funds. This is good because it will make crypto more decentralized by forcing people to use DEXs as an alternative to existing centralized exchanges. After all, crypto is all about eliminating the single point of failure. When you give too much power to an exchange, that's when crypto becomes no different than traditional Fiat. Satoshi gave us Bitcoin to help us escape today's banking system. That means getting away from centralization as much as possible.

Binance make have taken the reign as the biggest exchange in the world, but it has a long road ahead before it becomes the sole player in the industry. I hope that never happens, or it will be a complete disaster for crypto. Competition is always needed to help the industry grow towards new heights. Empires don't last forever, so who knows if Binance becomes history sometime in the future? Just my thoughts

He is going to be way more wanted by police then McAffee soon, that's whats going to happen next. And he better run as $1-2 billion of their funds are not accounted for. I don't know if he could run as far that it would hide him. I am pretty sure he would have enough money stashed to stay underground but it needs so much will to do so.

What it comes to Binance, they have no real competition right now and they seem like good guys. So everything is a win-win for them

FTX has already announced a bankruptcy officially and SBF has run away to Argentina.
If CZ would have made this deal it would have only made losses but fortunately that didn't happen.
Also, there are rumors that SBF had designed a backdoor into FTX which enabled him to transfer funds without alerting anyone.
If this is true then SBF is in very deep trouble. God knows whats gonna happen next.

Considering what has been revealed, yes. It would have been a worst move ever to acquire something that's now been under the close eye of regulators and law enforcement and Sam is probably being sued for numerous reasons. This happened so fast my head is still spinning. It would need a miracle for FTT to survive from this as FTX didn't. Maybe at some day some people could make a group lawsuit that would be for FTT token holders. I am not sure how that would play out.

CZ did a good thing by backing out from the deal otherwise all his investment in order to save FTX would have gone down the drain.
Currently, FTX has officially announced of going bankrupt and I wonder what's gonna happen next.
Things doesn't get settled here because FTX was the second largest crypto exchange and I think we will get to see some traction in the next few days/weeks.

I have thought that they're trying to make a monopoly because they tried to acquire FTX. But it's wise for CZ not to proceed with the deal because of what Sam/FTX did to the funds that has been entrusted to him and his company.

Too many companies were involved to the misused funds of FTX because most of those came from different companies investment to them. I was wrong I guess there when I've thought about CZ's intention.

This is no longer news, since it happened already 2 days ago and there is already a message about it a few posts above. After FTX received a rejection of the deal, SBF turned to another exchange - https://twitter.com/SBF_FTX/status/1590709182684360705, presumably the american Kraken exchange, from which an official response has not yet been received.

Recent news that binance is not going to acquire FTX maybe they just lend some money to them  

Source : As a result of corporate due diligence, as well as the latest news reports regarding mishandled customer funds and alleged US agency investigations, we have decided that we will not pursue the potential acquisition of http://FTX.com.

https://twitter.com/binance/status/1590449161069268992

CZ explained his actions with good intentions to help exchange participants get their coins and save the cryptocurrency market from collapse. But the desire to buy FTX disappeared after the facts about the misuse of funds in the amount of $8 billion became known.

Although the deal won't happen anymore as Binance wagged their tail and won't proceed. It's a serious matter that a big exchange, Binance is trying to make a monopoly in here.

People have been trusting them that much and they're capitalizing that because they know that people will stay on them regardless of what they do.

It's sad that we're seeing them looking good but it doesn't feel and look good to us even if they tried to help FTX. In a tweet of CZ, I've read that he said he's trying to make the market more decentralized as it is because that's more favorable to us, I don't think so.

I agree. I remember people trusting Cryptsy and Mintpal too (currently both of their ceos are indicted). But markets weren't really even regulated. Whales played pump and dumps and exchanges didn't require KYCs and for some reason Bittrex didn't seem that legit at the time when it came as a rival.

When Binance came, regulators were just catching up. And newbie investors didn't have the trauma of big CEXes exit scamming, failing or getting hacked. People who came before 2017 knew that anything can happen and tried to warn everyone with the facts like "not your keys, not your coins".

I still think that the whole game has changed a lot. Regulators are watching things more closely and CEXes are working with them. FATF laws are coming and soon Regulated DeFi will be a thing and losses by theft can be covered by insurances. Security now is way more sophisticated and normies can trust security of Binance way more they can trust their own tech savviness to keep hackers away.

Only thing that can seriously mess things up now are unseen disasters we haven't thought about, or huge lawsuits and stuff that happened to FTX and even then you have to fear more market volatility then some exchange stealing your coins.

Yes. But Binance was still considered FTX's biggest contender in the crypto/Blockchain space. Merging FTX into Binance would make the latter much more powerful than what it is right now. Imagine if Binance keeps buying other exchanges until the becomes the sole player in the industry. It would pose unnecessary risks crypto was meant to avoid in the first place (single points of failure). If Binance goes down, you can expect the whole crypto market to crash all the way down to rock bottom. It'll be hard if not impossible for prices to recover within the short term.

Consider how Cryptsy (a now defunct exchange) caused a severe blow to the crypto market prices as it was one of the biggest exchanges in the world. Just like it happened with Cryptsy, it could happen with Binance at some point in the future. I believe regulators should step in to help prevent Binance from becoming a monopoly. Only then, there will be healthy competition which results in greater decentralization in the long run. It looks like the merger won't happen anytime soon (Binance backed down after it saw FTX's books), so we should have nothing to worry about. Just my thoughts

It's better for binance to stay away from FTX, The donation that already made by SBF to the democrats and republicans meant nothing for now as US is also starting to interfere and that makes binance think for hundred of times before try to acquire FTX. It's impossible now for help FTX. that was also answering my question why alameda has unlimited funds for sure.

That was also become a disaster to the all of projects invested by this VC. I will always avoid any projects that invested heavily by some VCs. this project may not so healthy like what already shown by the price performance.

Alameda is trying so hard to cash hard cash by dumping the remaining funds that is still in the crypto form.

CZ just backed out from that deal. This makes it so much worse for FTX. They were desperate, signaling how bad things were over there. And now even Binance won't bail them out. If i had still money in, i would be panicking now. Also anything that has exposure to ftx/Alameda will get market dumped. Bank run will be a race and only rule is to get out FAST.

CZ knew what he was doing.

I don't really get surprised if FTX founder sell his exchange to Binance because recently there is some issues going with FTT tokens which are native tokens of FTX can cause huge downfall in their business. Binance is already at the verge of becoming monopoly of cryptocurrency exchanges which is not good for the crypto market since we are talking about decentralized assets can be manipulated by the centralized exchanges.

But this shows there a lot of opportunities for new exchanges to succeed if they are giving best user experience and gain the trust of consumers and I am expecting Elon to launch one soon.

Hasn't binance already announced that it is acquiring FTX ?
Even if not then binance is already a leading crypto exchange which makes a step closer to monopoly already.
Now that FTX is collapsing, Binance is becoming even more stronger which we can clearly see on BNB charts.
It's a very though situation out there in the crypto market currently. Stay strong is what I would say.

It's not safe if binance is the only one taking the lead as the most powerful exchange in crypto space, things will be more balanced if there are two or more exchanges as powerful as binance exchange  ..

There is a big difference here though, Binance always have Safu fund just in case, I think every other exchanges should do the same thing, even crypto projects that aren't exchanges should start doing the same, the more I think about this the more it makes sense.

In the future things can get extremely challenging for Binance too and there won't be anyone there to safe them..

My advice is CZ should stop taking over other platforms and instead empower others to be like him..

Binance and before the takeover, FTX was a monopolist in the cryptocurrency market, whose trading volumes exceeded trading volumes on other exchanges by dozens of times. And this carries a great risk for the entire cryptocurrency market. And if something like this happens to Binance, the consequences will be impossible to predict.

as far that i know binance is doing LOI to buy FTX but can be cancelled at any time so we do not know if binance is going to buy FTX but if binance buys it will become more centralized and will be more danger to crypto space and will too big too fail

if i was CZ i will buy but still ftx can be operated as normally ftx do not merger it with binance

Actually Im not sure if this is a good idea. First of all their main exchange is Binance, so buying another exchange is really a conflict of interest, as if his gonna do major upgrade or changes to that. Im thinking his gonna do it out of respect to SBF if ever, since they are needing hus help.

But for some reason, others are probably will like the idea since FTX can still be rebuild and knowing CZ, he will not let it to go down or get ruined.

User tk808 already talked about it in 2019. I think he deserves credit for it. Everyone can read this topic.

Binance is getting bigger and very known globally. We can't deny the influence they make in the market that can be a tool also for the possible monopoly if they wanted. We couldn't just neglect that as once you are in business, greediness will even grow as well and doing evil is likely what we see. Might not all can imagine this thing but with the competition is growing, we'd might expect that "monopoly" think especially if you have the capability to do. I wouldn't wish for Binance of doing that but we never know their next move.

I think it's already a monopoly, they are the biggest crypto exchanges right now and absorbing FTX.com, they became bigger.

So CZ is one of the most powerful crypto personality that we have right now, his worth is growing, his influence encompasses everything crypto related. And this has been a issue for some already. Telling that it's going to be bad as CZ is so influential that he could become the Mark Z of crypto already. Could this be dangerous? that is the big question and hopefully it won't harm crypto in the long run if he become so big in the next bull run.

Binance has been a moving force in the crypto industry for quite some time, making it one of the biggest exchanges in the world. While there are many competitors striving to take Binance's "throne", but none have been able to succeed so far. Most recently, Binance offered to buy FTX for a hefty sum of money. If the deal goes through, that means Binance will become more powerful than what it is right now. After all, FTX is the second-largest crypto exchange in the world. That's a dangerous play because Binance would be one step closer towards becoming a monopoly. Imagine if Binance buys everything, and becomes the sole player in the industry. A hack, a government shut down, or any other undesired situation would destroy the crypto market completely. That's why I think it's important to have competition for the good of the industry. I can't imagine how high BNB's price will go if Binance gets to control all of the crypto market.

What are your thoughts? Do you think Binance is (or will become) a monopoly? If not, why? Do you think purchasing FTX is a good idea? Your input will be greatly appreciated. Thanks in advance.