Will it affect you in any way if Binance completely shuts down ?

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Quote from: fokinlipat on November 02, 2023, 10:40:07 AM

Will it affect you in any way if Binance completely shuts down ? I know there will be lot of devastating affects on crypto market of this incidence like bitcoin price will fall very sharply. Many users will also loose funds and some will loose faith on crypto.

I want to share you something maybe it will make you understand how bad the crypto market will turn out if Binance should collapse. Kindly go to Coingecko, at the top you will see different tabs, select exchange and you will see that Binance comes first, that information is nothing but the truth about Binance. You can see that they account for almost 30% of the entire crypto market. If today, Binance collapse, it will do many damages 3 times more than what FTX has done in the past because Binance is one of the most trusted exchanges due to CZ influence.

Even now, since FTX collapsed, some people don't want to have anything to do with crypto, they hate it and see it as ponzi and that was because of the trauma they face after losing all they had in one man mistakes, I am even having some doubts about the next bull run, it might not even come as we use to expect and bitcoin halving pump might come 2 month before the day as many people psychologically know how it used to end, pump and dump.

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Quote from: Yamane_Keto on November 13, 2023, 03:24:35 AM

does anyone know a complete list of their investments? I fear that they have a complex list that may intersect with all CEXs, some DEXs, and many services. They have been on the market list for more than 5 years, and this will make them have access or influence over many projects and developers.

We cannot have this list, but surely they are into some of these investments with their customers' money, and this is why centralized exchanges love to encourage people to leave their funds in an exchange, so they can use it in fractional reserve scam. If Binance bites the dust, there is going to be a domino effect, and we would see many crypto services collapse, as well shitcoins too.

Quote from: bayu7adi on November 09, 2023, 05:54:32 AM

Losing funds? I don't think binance would easily escape the fund replacement issue if the exchange really collapses. Moreover, in today's era, insurance to protect funds will be implemented for exchanges like binance. Everyone surely understands that many hackers will target Binance wallets, so it makes sense for CZ to prepare precautionary measures for such potential disasters.

I can see you are one of those who believe cz that funds are safu right. If you lose your funds in the collapse of a centralized exchange, they are lost for good, and if there is any chance you get something back, it would be after many long years of waiting and you will be glad if you got up to 50% of what you lost.

Quote from: bayu7adi on November 09, 2023, 05:54:32 AM

we see that the role of this exchange is very central right now. In fact, many people entrust their bitcoins to this exchange's wallet. People might immediately question the security of Bitcoin at the same time as evidence of Binance's exit, whether intentional or unintentional.

The people who use Binance as their wallet do not know what they are doing, and if they lose their coins if Binance collapse and then question the security of BTC, it is because of their lack of understanding of what BTC is and how it should be stored. BTC is supposed to be stored in a self custodial wallet and not in an exchange, it is not meant to be stored like fiat in the bank, when you use BTC, you are to be your own bank; that is why not your keys, then not your coins.

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Quote from: Yamane_Keto on November 13, 2023, 03:24:35 AM

I fear that they have a complex list that may intersect with all CEXs, some DEXs, and many services. They have been on the market list for more than 5 years, and this will make them have access or influence over many projects and developers.

While they definitely have their fingers in many crypto projects, I doubt that they have investments in some of the biggest competitors like Coinbase.

Its true what you are saying though, in case Binance going down it would drag hundreds if not thousands of crypto companies, especially loads of shitcoins built on their BSC chain so if anything it would be sort of big market spring cleaning. I still wouldn't liek to see it happening, mainly because even if Binance goes down, people wouldn't learn a lesson and would still use centralized exchanges to store their crypto while market would be set few years back.

Yamane_Keto

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I read all replies and no one mentioned the amount of Binance' assets. Other than the assets that Binance has recorded as reserves, which cannot be verified, does anyone know a complete list of their investments? I fear that they have a complex list that may intersect with all CEXs, some DEXs, and many services. They have been on the market list for more than 5 years, and this will make them have access or influence over many projects and developers.

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Quote from: fokinlipat on November 02, 2023, 10:40:07 AM

Will it affect you in any way if Binance completely shuts down ? I know there will be lot of devastating affects on crypto market of this incidence like bitcoin price will fall very sharply. Many users will also loose funds and some will loose faith on crypto.

I don't have the funds there but of course it will still have an impact because the crypto market will turn red globally and this will cause the asset value to decrease significantly in USD terms, and what is even more unpleasant is the time it takes for the crypto market to recover which is very likely very long and also Restoring trust in crypto will be difficult in the short term so the impact will be quite long considering the magnitude of Binance's current influence unless the shut down occurs when they have lost a lot of users.

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I normally use Binance Exchange for my P2P transactions, which is when I am trading in fiat. If perhaps something like this happens now, I will look for another exchange to carry out my P2P trading. That's the only way I might seem affected, but I will not be affected in the aspect of losing funds. I don't save my money on centralized exchanges, and that's why I will not lose my fun. Although this might cause the price of Bitcoin to plunge, it's not going to last for a very long time because we are already heading for a bull season, so even if the price drops, it will definitely go up again.

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Quote from: Darker45 on November 09, 2023, 08:44:07 PM

We never learn from experience, that's why history keeps on repeating over and over again.

It makes me cringe how some people put so much trust on Binance, and other centralized exchanges and platforms for that matter, that they believe it will allow them to withdraw their funds before completely shutting down. That's too naïve of them.

I like Binance as an exchange but I know also that I shouldn't keep most of my funds there, if I'll stay some balance there it won't be that much unlike those that have believed that it's totally fine to store all of their lifesavings there. Yeah, people never learn from it and they keep on trusting their funds to exchanges and never consider the suggestion of only putting the eggs that they can afford to lose there.

Quote from: Darker45 on November 09, 2023, 08:44:07 PM

How is that even possible? A centralized exchange going bankrupt but allowing its customers to withdraw their funds first before finally closing down? Are they serious? Do they even know what bankruptcy is? Are they even aware that those centralized exchanges that collapsed were still operating despite insolvency?

Well, that's just a speculation. It can be possible but yes, most likely that they won't allow anyone to withdraw anymore just as what we've seen in some exchanges that had been in trouble for the past years.

Quote from: michellee on November 10, 2023, 10:23:10 AM

If it is a bankruptcy, Binance will need to prepare huge funds to be able to refund its customers. If that happens, Binance will provide information about the timing so that its customers can withdraw all their assets.

If they cannot pay all of their customer's funds, that is an exception and their customers will bear all the losses. This is why it is not recommended to store large amounts of assets on exchanges. This is to anticipate if this happens.

When they are already bankrupt, they are not obliged to prepare for huge funds. They'll only need to file for Chapter 11.

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As hard as it is for me to say this, I will still say it that, millions of people will be negatively affected if for what ever reason, binance goes down, and it's not just about the people that will be affect, the crypto market will collapse overnight, bitcoin may sharply return back to below $10,000, while ten of thousands of altcoins will completely collapse and may never recover again.

The most short and simple word to use is "catastrophic", binance collapse will be catastrophic for the cryptocurrency industry and market in general, people will lose billions, many may end up taking their own life because they can't live to bear what they have lost, the world of crypto will be in total chaos..

This is not even right to imagine or think of, not to talking of discussing, binance should not collapse, not now, they are free to when another exchange have taken over the world power of crypto.

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Quote from: NotATether on November 09, 2023, 03:56:05 AM

Eh?

And who guarantees that Binance will have assets by that point to allow all of its users to recover and move on? That kind of scenario will only happen if Binance gives an advance notice to a shutdown date in the future, which is extremely unlikely to happen given that Binance is so large and powerful at the moment.

And if it just shuts down suddenly, then nobody will be able to withdraw funds.

Nothing can guaranteed. But we know that Binance is now bigger than it was a few years ago. Even though they continue to be hit by regulations in several countries, that hasn't stopped Binance from continuing to operate. So it is unlikely that Binance will close its business, although the possibility remains.

To anticipate that, we don't need to keep large amounts of funds on the exchange, and we already know that.

Quote from: tabas on November 09, 2023, 06:44:08 PM

That is possible that they may give notice before they entirely go on a shutdown. But there can be a reason for a shutdown and one of it is bankruptcy. We've been into belief of their "funds are safu". But what if we see the negative side of theirs that they'll put on a notice that everyone's fund is lost and they're already bankrupt. Like the other known and popular exchanges that are still in contest for the funds of their users that they've kept for all of these years. We have to learn from the experience of others and from the bad ending of other exchanges that we shouldn't trust them wholly.

If it is a bankruptcy, Binance will need to prepare huge funds to be able to refund its customers. If that happens, Binance will provide information about the timing so that its customers can withdraw all their assets.

If they cannot pay all of their customer's funds, that is an exception and their customers will bear all the losses. This is why it is not recommended to store large amounts of assets on exchanges. This is to anticipate if this happens.

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Quote from: tabas on November 09, 2023, 06:44:08 PM

Quote from: michellee on November 08, 2023, 10:53:14 PM

It doesn't have much of an impact because before Binance shuts down completely, Binance will allow all its users to withdraw and move all their assets to other wallets or exchanges.

That is possible that they may give notice before they entirely go on a shutdown. But there can be a reason for a shutdown and one of it is bankruptcy. We've been into belief of their "funds are safu". But what if we see the negative side of theirs that they'll put on a notice that everyone's fund is lost and they're already bankrupt. Like the other known and popular exchanges that are still in contest for the funds of their users that they've kept for all of these years. We have to learn from the experience of others and from the bad ending of other exchanges that we shouldn't trust them wholly.

We never learn from experience, that's why history keeps on repeating over and over again.

It makes me cringe how some people put so much trust on Binance, and other centralized exchanges and platforms for that matter, that they believe it will allow them to withdraw their funds before completely shutting down. That's too naïve of them.

How is that even possible? A centralized exchange going bankrupt but allowing its customers to withdraw their funds first before finally closing down? Are they serious? Do they even know what bankruptcy is? Are they even aware that those centralized exchanges that collapsed were still operating despite insolvency?

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Quote from: michellee on November 08, 2023, 10:53:14 PM

It doesn't have much of an impact because before Binance shuts down completely, Binance will allow all its users to withdraw and move all their assets to other wallets or exchanges.

That is possible that they may give notice before they entirely go on a shutdown. But there can be a reason for a shutdown and one of it is bankruptcy. We've been into belief of their "funds are safu". But what if we see the negative side of theirs that they'll put on a notice that everyone's fund is lost and they're already bankrupt. Like the other known and popular exchanges that are still in contest for the funds of their users that they've kept for all of these years. We have to learn from the experience of others and from the bad ending of other exchanges that we shouldn't trust them wholly.

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Quote from: bayu7adi on November 09, 2023, 05:54:32 AM

Losing funds? I don't think binance would easily escape the fund replacement issue if the exchange really collapses. Moreover, in today's era, insurance to protect funds will be implemented for exchanges like binance. Everyone surely understands that many hackers will target Binance wallets, so it makes sense for CZ to prepare precautionary measures for such potential disasters.

Insurance sounds like a good word to use, but a painfully slow process to endure. MtGox users did get their funds back or in the process of, but after such a long time. The legal machinery for crypto is full of holes and the lack of similar previous cases means a lot of fight to be able to regain your limbo assets after a hack.

Quote

will the market go down? maybe... we see that the role of this exchange is very central right now. In fact, many people entrust their bitcoins to this exchange's wallet. People might immediately question the security of Bitcoin at the same time as evidence of Binance's exit, whether intentional or unintentional.

One of the biggest exchanges in the world shutting down, it will make the market go nuts, hands down. I dont see how the "security" of bitcoin is related to this because they are two different entities. If an broker shuts down, do you question the security of USD?

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Losing funds? I don't think binance would easily escape the fund replacement issue if the exchange really collapses. Moreover, in today's era, insurance to protect funds will be implemented for exchanges like binance. Everyone surely understands that many hackers will target Binance wallets, so it makes sense for CZ to prepare precautionary measures for such potential disasters.

will the market go down? maybe... we see that the role of this exchange is very central right now. In fact, many people entrust their bitcoins to this exchange's wallet. People might immediately question the security of Bitcoin at the same time as evidence of Binance's exit, whether intentional or unintentional.

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Quote from: michellee on November 08, 2023, 10:53:14 PM

It doesn't have much of an impact because before Binance shuts down completely, Binance will allow all its users to withdraw and move all their assets to other wallets or exchanges.

Eh?

And who guarantees that Binance will have assets by that point to allow all of its users to recover and move on? That kind of scenario will only happen if Binance gives an advance notice to a shutdown date in the future, which is extremely unlikely to happen given that Binance is so large and powerful at the moment.

And if it just shuts down suddenly, then nobody will be able to withdraw funds.

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It doesn't have much of an impact because before Binance shuts down completely, Binance will allow all its users to withdraw and move all their assets to other wallets or exchanges. There may be an adverse impact on the market because as a large exchange, Binance also exerts influence on the crypto market. But it won't be long because the crypto market will definitely recover again.

It may also have an impact on the price of Bitcoin but that won't be long either. There will be a change in top positions for the crypto market so the situation will change. But there's nothing to worry about. People who have known crypto for a long time will maintain confidence in crypto. They already understand what the crypto market is like.

But there are indeed some investors or traders who have lost confidence in crypto and these are the ones who will abandon crypto. Others will still stay in crypto because they know it's only temporary and everything will recover.

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Quote from: BitcoinsGreat on November 08, 2023, 02:22:47 PM

what if there is a successful hack attempt on Binance and they lose a major portion of their cryptos Huh

Then that means their security is lacking. I recall some hacks are successful though. Albeit it only affects their hot wallet. I assume a lawsuit might come against them even if they claim they were hacked. I believe the market will eventually recover even if one or two big exchanges collapse.

Personally, other than the decrease of Bitcoin and other crypto, I doubt Binance being bankrupt will affect me in any way. I no longer use them since months/years ago and my local exchange is clearly better for my needs. What worries me is if they are trying to acquire more local exchanges. Hopefully, that doesn't happen.

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Quote from: fokinlipat on November 02, 2023, 10:40:07 AM

Will it affect you in any way if Binance completely shuts down ? I know there will be lot of devastating affects on crypto market of this incidence like bitcoin price will fall very sharply. Many users will also loose funds and some will loose faith on crypto.

There are two scenarios to think about, One is that Binance announces that they are closing their business and letting the people withdraw the funds from the exchanges. This may not have as bad an effect as compared to the second scenario where Binance shutting down all of a sudden due to some unforeseen issues (as we have seen with other exchanges in the past like FTX etc).

Any mishap or unforeseen incident which causes the binance to shut down at once with prior notice and freezing the people's funds will have a very bad effect on the market even more worse than we had seen the crash during the Luna crash or during the FTX issues. The reason is that binance is the biggest crypto exchange and we are not really mentally for the fall of this exchange.

Quote from: rat03gopoh on November 05, 2023, 03:42:37 AM

Quote from: hugeblack on November 05, 2023, 03:03:33 AM

and the price of Bitcoin will likely decline sharply,

Except for the intervention of authorities, Binance doesnt become another FTX drama and immediately releases all user-owned bitcoins in all cold-hot wallets without any complicated process nonsense requirements. Bitcoin is always the decider.

It is not only because of the authorities' binance shut down or due to any regulation. Also, it is also not because Binance wants to scam and they shut down the business, what if there is a successful hack attempt on Binance and they lose a major portion of their cryptos Huh

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Quote from: hugeblack on November 05, 2023, 03:03:33 AM

and the price of Bitcoin will likely decline sharply,

Except for the intervention of authorities, Binance doesnt become another FTX drama and immediately releases all user-owned bitcoins in all cold-hot wallets without any complicated process nonsense requirements. Bitcoin is always the decider.

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The short-term impact will be catastrophic, considering that what happened with Luna will be a spectacle compared to what will happen, and the price of Bitcoin will likely decline sharply, and most alternative currencies may be affected, and the cryptocurrencies we know may disappear, as the Trust Wallet and CMC are both for the same platform.
The long-term effect will be good in enhancing decentralization and the importance of not leaving your money on the platform.

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Was it like there was a time that when some news about them or technical issues happened to them and then the market drowned for a while? I can't remember that but I think there was this scenario before and the market really in turmoil on the spot. Anyway, I've got a few bucks sitting there and if they shut down, I would feel bad though, money is money. Tongue

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