Topic: The Monopoly of Binance (Read 753 times)

That's certainly true, mate. There were popular exchanges that took the crypto world by storm before Binance's launch. The main reason Binance is the biggest cryptocurrency exchange nowadays is because it's been always the main innovator in the space. By adopting the latest technologies and features, it has been able to stay on top of other exchanges worldwide. Even with recent regulations by the US, Binance will offer trading services to US customers by complying with every law. In contrast, some crypto exchanges have closed their services for US customers as they're not able to comply with existent regulations. By doing this, they'll obtain a lesser amount of users than Binance.

Given how big Binance has become even after a few years of inception, it's known to be a monopoly nowadays. No other prominent crypto exchange (like Coinbase and Bittrex) have been able to keep up with Binance as it offers the most trading pairs within the crypto space. Now, with the new Binance DEX and Binance Chain, its popularity will soar towards new heights. Projects that used to operate within the Ethereum blockchain, might switch to Binance Chain because of its unparalleled speeds and low costs. If this happens, then Binance will not only become the leader of crypto trades but also it'll become the leader of ICOs, and IEOs.

Nonetheless, Binance's monopoly may not last long if people start using other alternative crypto exchanges. With the rise of atomic swaps and decentralized exchanges, Binance's dominance within the crypto market may decline within the long term. Despite this, Binance's success will be largely determined by how many people use/support it. Just my opinion

http://binance.com.websitetab.com/ - 797 global rank, millions of daily visitors, and billions of worth. Definitely binance dominance over crypto trading is prominent.

Rather than noob, i would call it binance was still new. On 2017, binance just launched (their ICO was also finished), thats why they didn't popular yet on that time. 

Look at CMC exchange for 24 hours volume, binance doesn't monopolist crypto exchange

Thats normal because on the year 2017 binance was still a noob while others are already shining  but the idea of thinking that any coins can pump while being listed on those popular exchange is ugly  .  only promising coins can remain but coins that arent performing well wont suceed no matter how good the exchange was  .  

I do agree with your points which is actually true.For now we have seen some exchangers trying to get up the top tier spot  in able to compete with Binance.There
are actually exchangers are on top but cant actually go toe to toe with Binance in terms of volume which this thing signifies about the difference of popularity.
They are too clever or wise on how to get users in the market by providing services which havent offered by most exchangers yet.

Every to fast or rapidly growing business that eventually eat competitors becomes monopoly at some time, if there is not some regulatory hand to slow it down either with strictly set boundaries or with some kind of de-stimulating factors where business decides it's just not worth it to grow anymore.

People have influence in this outcome after all, if not so much people would use it as a reference then it wouldn't grow to become monopoly in the first place.




 

When binance was launched in 2017, many exchanges including bittrex, bitstamp, poloniex were the most popular cryptocurrency exchange and investors believe that any coins or tokens listed there always be recognized as the best tokens or coins but binance has taking over that popularity from them and if you ask of the best exchange and exchange that one desire for any coins or tokens to launch people will said “binance”!

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We'll see. As Binance grows each day, its dominance across the crypto market becomes greater. Its success will largely depend on the people using it within the mainstream world. Of course, the fall of Binance will not completely destroy crypto. But, it will negatively affect the industry as prices for major cryptocurrencies go down the drain. After that, it'll take quite some time before crypto recovers to its original prices.

Despite the centralization risks Binance provides, it's somewhat convenient for the average person. The trading platform has a user-friendly interface and a wide variety of trading pairs to choose from. Binance also has a "DEX" which makes use of its BNB token for trading operations. Users who hodl Binance Coin (BNB) will benefit over the long term as it provides them with discounts and several other goodies. If Binance manages to maintain its outstanding customer service and ease of use, no other exchange will be able to compete against it.

Which is why, the world's most popular crypto exchange is starting to become a monopoly sooner than we've thought. We need more competition from other exchanges that will greatly rival the existence of Binance. But none have been able to rival Binance, since it's too powerful already. The best we could do is to support other exchanges as well, instead of using only Binance for all of our crypto trades.

Nonetheless, the future of Binance looks very bright as it gains traction within the mainstream world. Still though, the trading of cryptocurrencies may become highly centralized which is not good at all. But at least, crypto will survive because of its decentralized and distributed nature. Just my thoughts

It would really come to that sort of point and we are already currently seeing it heading that way.I cant blame them yet Binance had done all sorts of things to make
their reputation to the top where doing or offering things which is ahead into its competitors which means they are worthy to be used or preferred by most users.
I disagree on the thing you said that incase Binance would be compromised by the government but it isnt enough for crypto doomed to failure.It may majorly affect but not coming to a point on completely disaster.

The Binance of today was the Mt. Gox of yesterday. Unfortunately, as new people get into crypto, they will fall into the crypto honey pots known as centralized exchanges. There really needs to be a push from those experienced with cryptocurrencies to push new users away from keeping all their coins at centralized exchanges.

Personally, I believe that Binance is a great crypto exchange. It has good customer service, and its trading platform is flawless. With many features available such as discounted fees (with BNB), and a DEX, there's no reason why people should hesitate to use it in the first place. However, the real concern is that if people only use Binance for performing crypto trades, it could bring a single point of failure towards the entire crypto industry. The moment there's a massive hack or Binance becomes compromised by the government, will be such where crypto will be doomed to failure.

After all, Satoshi invented Bitcoin's Blockchain technology to be free from middleman. No single point of failure, and censorship-resistance is key towards delivering a sound and stable system for anyone to use without interruptions. This means that anyone could easily acquire, sell, or send/receive crypto without the dreaded risks of traditionally centralized systems. But seeing that's not the case after a decade of Bitcoin's inception, shows us that Satoshi's vision of true decentralization will not be fulfilled anytime soon.

Nonetheless, it's best to bring competition within many areas of the crypto industry, in order to leverage centralization risks. Binance's success is largely determined by the people supporting it. If everyone chooses Binance over other crypto exchanges, then the crypto-exchange giant will become a monopoly. For the sake of crypto's future, diversification is the most ideal path to take. Just my thoughts

Exactly what i thought!

Binance may be monopolizing as seen by the other exchanges/people but they deserve it since they were doing good in keeping the people to trust their exchange. They may be called monopolizing because of their token BNB, but that's not this is all about.

indeed,
i laugh at the moment when they reset global all user api keys

I don't think binance are monopoly the cryptocurrency because besides of binance, we have poloniex, bittrex, kucoin, and the other exchange. Although those exchanges are not too big as binance, binance still need to keep their work to be one of the best cryptocurrency exchanges. I think if binance launch their dex, it will make a hard competition among the other dex because now binance dex comes with a strong team and if the other dex doesn't want to beat by binance dex, they need to work hard and still competing.

What kind of monopoly can we talk about?  The management of Binance missed the moment when they could manage the market. Now Binance is a usual big puppet of Bitmex.

Well, the crypto community should continue to inform newbies about the dangers of relying too much on any centralized platform that exists in crypto space
I kind of think that the long term goal of platforms like that is to corner majority of Crypto users then handover everything to people at the top.

Binance is really my best exchange but your post makes sense. If everyone wants to use only Binance for trading and not other exchanges, it doesn't really look cool.  Well, over time Binance has proven to be the best from the launch of Binance chain, Binance DEX, Binance Info and now margin trading. It's really innovative and has impacted greatly to crypto space.

If this is a monopoly, then while it is the quality monopolist. If the team will always maintain the quality of work and all functions of the exchange(s), then I have nothing against such a monopoly. Of course, if they will not control the market to their avail only, which is very likely.

No I don't think it is or will become a monopoly, but you've raised a valid concern.
Binance has been really ambitious since it started, and has performed hugely well. I do expect it to probably increase its dominance, but I don't think it will ever reach that sort of monopoly stage. There is a limit to how far it can go. People will be too wary of one exchange ruling everything. If it ever reaches the stage of being that dominant, I would image that people will start to make comparisons to MtGox for one, and start to get very wary.

I do think that increasing monopoly of binance is not a good thing atleast there should be some kind of healthy competition among top 5 exchanges but seems like binance is way ahead both in terms of providing products and services and also the volume, i hope even if binance stay ahead they will use this to help create awareness and crypto adoption among masses.

Interesting fact. Binance has claimed its DEX to be decentralized, when theoretically it is not. This is more of a marketing scheme in order to attract most people from crypto land into using the platform. The term "decentralized" has become more of a niche than anything else, as companies take advantage of the situation in order to fool people like you and me (especially newcomers). The truth is, that privately-controlled Blockchains will never achieve true decentralization as there is a single point of failure. This is happening right now with Binance, where it's the only one maintaining its Blockchain network (Binance Chain) required for the DEX to operate as intended.

Seasoned crypto enthusiasts will understand this easily, but newcomers into crypto will not. Since many people still trust Binance, they're willing to continue using the platform despite its centralization risks. Comparing Binance versus other alternative exchanges, it seems to be in the lead every step of the way. As it continues to grow, its chances of dominating the crypto industry become higher each day. But, Binance's success will largely depend on the people themselves.

Nonetheless, I believe that other exchanges like Coinbase and OKEX have a higher chance of competing against Binance over the long term. Coinbase acquired a 0x-based exchange some time ago, while OKEX is creating its own DEX. Eventually, both Coinbase and OKEX will have their respective "DEXs" that will allow them to stay in par with Binance. Once this happens, Binance's dominance within the crypto market will be lesser than it is right now. Just my opinion

They are widening the gap as well, that is the weird thing. They are clearly the best one out there and they are basically controlling whole of the exchange market but they are still looking after getting more stuff, they got into IEO so they could corner the ICO market with new coins as well, they are now going into margin as well to get from bitmex, they are doing plenty of stuff that would eventually get more money from other people.

I am not going to be shocked if they open a casino as well in order to make more money, I know that is irrelevant to exchange but with the speed of improvement I am fully expecting dapps systems, games, casinos, interests, masternode sharing, collective staking and many more from binance all in one website to make themselves the sole survivor of exchange market.

Binance is doing everything right, in early 2019, in my opinion it Binance pulled us out of the pit, but it's too early to talk about monopoly, too many competitors, Binance has much to grow.

it's still too early to say Binance has monopolized. good exchange is not just Binance now, there are many exchanges that are still good.

binance is good only because it provides innovation, the rest there is nothing different. maybe they can monopolize their Tokens (BNB), but for the whole I think it's very difficult.

yes, that is to maintain the trust of their platform. and we can see binance growing with market confidence in them. trade is increasing, and amazingly now he is the best. whatever happens, it will not change the trust of traders and investors on their platform.

As long as the goal is for good, what do you say that binance controls and controls many branches of business. is something that is usually done by large companies, but will start kotraductive if binance will do a monopoly because it is no longer fair and all are regulated by themselves and others just follow the rules.

There are lots of crypto exchanges and Binance has always been the choice of many people to make a profit, the Dapp developers have also swapped at the Binance DEX exchange, there is always an increase in the price of new coins listed there, but I am not a Binance exchange user, because I prefer using DEX exchanges and Yes, maybe a monopoly has been done because every BNB coin holder will get a lot of benefits at the Binance exchange

And it is bad? Binance is one of the most trustworthy exchange currently, they care about their customers, do you remember last time when they were hacked? They solved everything very quickly and transparently.

With all this discussion, I'd like to caution people that it's not a good idea to keep all of your asset in an exchange. There can be individual phishing attacks where the exchange won't be able to help you and not every hack could be covered by SAFU.

Exactly, they deserve on their success now, and why they were successful is because they also shared to the community their profits when you invest with their coin.

Other exchange only want to take a commission when you trade but by buying BNB token, you can benefit on the success of the exchange, and demand of the BNB now is also brought by the increasing number of investors and traders who are trusting them, especially now that they are also very popular with their IEO, I can see that this exchange will continue to grow, it's already a billion dollar industry but it could go to trillion if they'll take care and keep improving the business.

I also agree that Binance maybe now is the most used exchange, but there are other exchanges which should do more to have some equality and not a monopol exchange, but Binance show is possible to have success on crypto and other exchanges should follow.

For any exchange or trade, the first thing comes in my mind is binance. They have a robust system, largest volume, low fees. So, why would people look anywhere else. With now Dogecoin finally added to the Binance, I have no reasons to look anywhere else.

Bininance doing a very good job and I think that now they are leaders and they deserve it. they develop themself faster and better than other exchanges

I also think so, and binance has indeed become a monopoly. Why? yes because so far binance has a very large influence in the crypto industry. This is truly a binance main goal, just look at them always developing and improving their platform to have trust in the market so that only their platform dominates the market.

But that does not mean that no one will be able to defeat binance someday, it could be the same fate as the previous exchanges that he defeated.

Binance has the right to claim it by themselves or us, since they are dominating in terms of trading volumes and the number of users and all others, but we could not tell in the long run, as the possibility of having a new exchange would eventually come at no time. For now, i like binance actually because its easy to transact business whether you are not a KYC verified, among all others binance dominates them all.

Binance giving a super service thats why they are in remarkable position. from the past times, you can go through you will see what are the improvments given to cryptoworld by binance

no it is not too early to tell, Binance has indeed turned into a monopoly and that was their goal from the start. right now they not only have the highest volume in the altcoin market but also they fully control the altcoins and many of their prices too. they can easily decide which coin lives or dies, which coin to pump or dump and  a lot more.

the only thing that is too early to tell is when will this monopoly be broken. in the past we have had many other exchanges that had such monopoly states such as poloniex but they all come to an end.
now i don't know whether Binance is going to be replaced by another centralized exchange like it did with its predecessors or this time will it be killed by real decentralized ones.

binance has become a monopoly in the crypto world. I take some real examples, like any altcoin that has just entered the binace exchange, it will definitely experience an increase in price and volume.

There are over 19000 exchanges on the market (according to CMC)

So how can we talk about monopoly in the market now? You can always prefer other exchanges. Do you have any bullies for Binance?

It's definitely not a monopoly, there are several other exchanges that exceed Binance in trade volume for certain trade pairs.

Beyond this, Binance will never be as trustedworthy as something like Liquid, Coinbase or Gemini because it doesn't offer insurance over funds (and no, the 'safu' fund) doesn't count.

It doesn't even handle fiat, therefore Binance is far from cornering the market.

it's not for this time but that will be yes for the future. Basically, BNB token is not the first because there was a lot of old exchange site that were not popular already used that idea. Binance can do monopoly since it was a big exchange site.

I do not think that Binance will be the monopolist, it ideas with BNB tokens have already been copied by other exchanges and this idea will be copied also

I agree that Binance being a monopoly is an opinion. I think they have created great influence in the market through their Binance Labs, KYC/AML compliance with firms like ciphertrace, backup plans for hacks and generally providing value to the entire industry. I am looking forward to seeing this exchange set itself apart

  I really don't have a problem with CZ or his company.  He is doing regulatory arbitrage and limiting certain markets because of retards in the US more than anything else.  That said, Defi has a role to play and Stakenet's DX will be highly useful. 

When some newbies ask for an exchange to trade, we say Binance.
When some new projects come out, we asked "when listed on Binance?"

We should not be surprised if we see Binance dominate the exchange market since we (crypto community) patronize it.
It's ironic that we can now see its dominance as a threat.

As a Binance user, I have not a single problem with them except their mobile app. Somehow it is not working for me at both devices.
P.S. Additional thanks to BNB 

No one should begrudge Binance exchange its rightful place in the crypto space. CZ has paid the price through Due Diligence with several market innovations. It has gained the trust of many a trader and we can only hope it stays true and not go rogue like some exchanges in the recent past. However, I believe every worthy exchange with its own coin usually performs well in the market.

It's sickening that Binance even calls it a "DEX", because it's NOT A DEX.

A DEX is a decentralized exchange. This means:

NO KYC
NO REGISTRATIONS
NO GEO-BLOCKING

Fun fact: All nodes running their "DEX" is controlled and run by Binance themself, that's NOT how a decentralized exchange should run.

The best solution I've come across, is Stakenet's Lightning DEX solution, which will be running entirely on masternodes. This means, that when they launch, even if the DEVS wanted to, they CANNOT stop the DEX. With 2100 active masternodes, it's capable of running TONS of trades/seconds, especially because it's lightning compatible.
The reason they chose to use masternodes as the backbone, is because it allows the nodes to host all the chains. This means that NOBODY needs to sync with the network to use it, which makes it extremely user friendly, and I'm sure you'll have a hard time even noticing it's a DEX, once it's up and running.

Binance is the king of exchanges right now, but once REAL DEX's get's popular, and people realise that they can now trade anonymously with no KYC being forced down their throats, then I bet $1000 that DEX's will be the popular choice, and the monopoly of centralized exchanges in general will fade away.

Binance story is about a cooperation that has mastered the art of controlling many business branches excellently. Monopoly Is not good for competition as it kills creativity but we can't take it away from CZ for being a brilliant capitalist

Maybe part of your opinion is right now. Binance is leading the current crypto market. They created trends and maintained that trend.
It can be said that Binance currently has a great influence on this market. Other exchanges need to change to attract more users and increase their competitiveness, thus helping to avoid the case that Binance monopolizes this market. Recently Okex announced about OKchain, as well as regular monthly launch of IEO, I think it is a positive signal.

Ever since Binance started in 2017, it has aimed to become the world's largest cryptocurrency exchange by providing a wide selection of trading pairs, user friendliness, and ease of use. With its proprietary token known as Binance Coin, users are able to obtain discounts when hodling them, which results in lower fees in a trade. This model of trading cryptocurrencies has become quite popular, leading Binance towards an upsurge in user trust and popularity within just a few years since inception.

Now, Binance has launched Binance DEX (which will live on Binance Chain) which will be of great benefit to its BNB token in many ways. Comparing Binance against other leading cryptocurrency exchanges, it seems that it might leave other alternatives in the dust within the future.

This is somewhat good news for the adoption of crypto and Blockchain technology, as Binance becomes the leader of crypto trades and IEOs. However, there's a huge concern that if Binance becomes the only prominent crypto exchange, it'll be very bad for the crypto industry in general. The situation of Binance will be the same as Bitmain where it gains control or dominance over the crypto industry. Of course, Binance still has its competitors just like Bitmain in the ASIC manufacturing world. But, such competitors might not stand a chance against Binance, because of its established monopoly within the mainstream world.

Nonetheless, do you think that Binance has become a monopoly or is it too early to tell? What are your thoughts about Binance's current situation, and how would it impact crypto over the long term (either positively or negatively)?