Topic: Is Binance too big to fail? - page 11. (Read 1839 times)

Exchanges are under government regulations and restrictions the only way they can fail is they break rules and mismanagement, so far they are doing great, they are the industry leaders and if they will satisfy both the regulators and their users, they will continue to enjoy the support of the industry, they can fail if they do not handle their leadership well.

Binance has made itself an icon in the cryptocurrency industry with her impact in virtually every sector of the industry. The truth is that it would be difficult for binance to fail. Not too long ago, we heard of the hack of the exchange which lead to the loss of thousands of Bitcoin. Issues like this has crippled a huge number of exchange, but binance is still standing stronger than ever.

BNB is promoted it from just being a exchange token to a coin which gives a solution to the current existing platforms like ethereum so yes they are too big now to fall from the place but how long these projects using BSC will alive? With the initial hype there are many project provided yields to the investors but in long run the hype will disappear and the only project with real potential will grow.

So BNB will be just the token of their exchange forever, once Binance fall then everything will fall.

They got bigger because they seem to be trusted and users are recommending them.
They also own BNB and have the biggest volume on their exchange, they should be big. But over time when IRS is going to keep watching them, traders may just stay away from them and go to DEXand we have seen this already this year which Uniswap and other ETH DEX are getting billions of trading volume already.
Nothing is too big when it can hurt traders especially now that governments are considering their own CBDC to watch out for everyone's finance activity.

I understand your concern, that this could be a bad thing for the crypto market in the future because if Binance has a fate like MTGox or other major exchanges that also eventually collapse then there will be panic in the crypto market. That is why we have to understand the huge risk in crypto. Currently, Binance is very powerful and their presence everywhere continues to influence the crypto space and no one can deny this, but as long as they do the right things we can trust to still transact there, with our own risk.

I won't say binance is too big to fail. But am sure with you know or see the the high volume of trade carried out with binance on daily basis.

With the look of binance you can't bring failure to the team, their success is just unbeatable. Binance is the best exchange out there no other exchange can be compared.
My love for binance is just too much not to talk of Binance smart chain (BSC).
Binance can't fail.

Binance is too big to fail dude. You must see that so much daily trade volume gets centralized on binance and that means binance has unlimited funds to develop more and more products.
The daily average transaction on BSC is already surpassing ethereum and that means there are more active users on BSC rather than ethereum. It will affect crypto positively in the long term.
Binance is doing so many expansion to the various countries.

Too big to fail usually implies that it will cost the taxpayer a huge amount not to underwrite any losses (aka banks going bust) because they are so integral to most peoples way of life. For instance during the 2008 crash it made more sense to pump some money into one or two banks at the start, with reasonably punitive repayment rates, because they would have caused a domino affect through the whole monetary system of the US. Unlike what some people may wish, I don't think cryptocurrency is at the point where it will cause systemic damage if people started cashing out tomorrow. Yes it might cause a brief panic and many people would lose a lot of money, but the rest of the economic system can continue regardless. There will be some people who took loans to cover assets worth much less, but that should be a small percentage because loan providers generally would not give money for this sort of speculation.

As for Binance having too much influence over the blockchain, I don't think that is true as most of the transaction activity is handled courtesy of Chinese devices. It also has large competitors (Coinbase/Localbitcoins) and a relatively low barrier of entry (mainly security related). It allows trading of some coins that otherwise would not have a market, it was only a few months ago that the Dogecoin craze took off and not many large scale providers were able to support it - Binance did and we should be grateful.

This post sound awkward to me, why are you interested to see binance fail, if anything the crypto community should be supportive to help all this exchange be a better place to trade, nothing is too big to fail but sincerely hope nothing like that will happen to binance,  you may not know it but the millions of people from all over the world that binance can access will be gravelly affected,  I hope this won't happen.

No entity is too big to fail in this space. Crypto is not regulated therefore even if the whole crypto ecosystem goes poof, no authority will lift a finger. Nobody will bail you out neither. mtGox used to be very big too and it went down anyway. This is what makes crypto so risky and so profitable at the same time. Without any risk of losing money, you get 1% annual interest from a bank (if you are lucky)

Nothing is insusceptible particularly in crypto where just one bad news can destroy anything no matter how strong it is.
Binance has grown into a big crypto business but to say it can't fail, is too much.
Although I wish it never fails but it is not that it can not fail.

Binance has grown into a force to reckon with since its establishment in 2017. In just 4 years since inception, Binance dominates the crypto market being the largest cryptocurrency exchange in the world. Its most successful venture has been the launch of a public smart contract platform dubbed "Binance Smart Chain". The native cryptocurrency "BNB" went from being worth cents to hundreds of dollars (USD) in just a few years since inception.

It seems to me that Binance has huge influence over the crypto/Blockchain industry. Sometimes I wonder if the world's biggest crypto exchange is too big to fail. With no signs of decline, Binance is on a road to widespread success in the mainstream world. This is bad because it'll make crypto heavily centralized.

What are your thoughts? Is Binance too big to fail? If not, why? Do you think Binance has too much power/influence over the crypto/Blockchain industry? How will it affect crypto (either positively or negatively) in the long term? Your input will be greatly appreciated. Thanks in advance.