ARE YOU WORRIED about the potential collapse of BINANCE?steemCreated with Sketch.

in Project HOPE3 months ago (edited)




Today, I would like to focus on receiving your feedback on one particular topic: the upcoming future of Binance exchange. Are you fearful or calm about its future?

Recently, we have all witnessed the collapse of FTX crypto exchange, which caused many investors to lose their funds, resulting in a devastating effect on the crypto market. Following that event, tons of attention has also been directed towards Binance, an exchange which is much larger than FTX and not really much more transparent with their reserves and liabilities.

The other day CZ (Ceo of Binance) has been "grilled" during his interview in CNBC to the point that entire crypto market dropped again from $18k all the way down to $16k. Have you seen that interview? It did look quite embarrasing for CZ and there were moments where he sounded like a person who desperately wouldn't like to be the subject of such an interview.

The very next day, a friend of mine asked me if I'm concerned with the situation around Binance and if I'm worried that they will also share a similar faith to FTX (collapse caused by sudden lack of liquidity). And this is exactly what I would like to discuss with you today.

Share your own view on that topic


Before I will write what do I think about the potential threat that Binance will collapse, I would like to ask you to share your own view. Are you concerned about the upcoming future of this particular crypto exchange? Or perhaps you see it all as another FUD and nothing more than that?

My personal perspective


Right now, I think he (CZ from Binance) got himself into real war with part of the political and financial establishement in USA. And that he didn't see it coming.

At the same time, my life and business experience taught me that markets usually tank when unexpected things are happen. Those that we fear the most do not usually happen.

So in a way - I was more worried that Binance can collapse (just like FTX would) when noone expected it. Now expectations are quite high that something might break. And that makes it already unlikely to happen.

It is because absolute majority of business collapses happen because of sudden liquidity problems. If FTX would have enough time to prepare himself for liquidity shortage, then he would also survive.

Right now binance got enough time to prepare themsleves for a liquidity crunch and for some sort of 'punch back' directed at them. Which makes it unlikely for them to collapse.

Would you agree or disagree with my stance on this topic ?

Yours, @crypto.piotr
@project.hope founder
check out our PH community:


Dear @crypto.piotr a valid concern indeed.
Binance currently is the last centralized standing tallest amongst all others. That being said I have to say that there is a lot of suspense about the actual state of affairs of Binance.

Binance is like a closed box and no one knows for sure what is happening there so the best approach is to be optimistic yet cautious.
Thus my approach is that of cautious Optimism.
Perhaps CZ is spreading the risk and if you notice he has been spreading the word and promoting trustwallet the decentralized wallet of Binance.
Pair it with the binance smart chain so perhaps he is trying to maintain his leadership position as a centralized exchange and in case people lack faith they can switch to trust wallet and do a decentralized exchange either from within the app or via one of the many dapps on BSC.
It may not be giving a 100% coverage for all the coins and tokens but it sure would allow users to move funds from Binance centralized to a dex version and still have a hold over the client base and all the BSC transactions do earn him the BSC transaction fee as well.
So he is spreading the risk yet trying to maintain his client base.

 3 months ago 

Thank you for this amazing comment @thetimetravelerz

 3 months ago 

@tipu curate 5

I really don't think that Binance will collapse like FTX. They have all the time to prepare themselves for anything that may be coming their way. It's very unlikely for that to happen.


It is only Natural for such fears to come up in humans due to some past experiences in the crypto world. As for binance, i will say i am not too worried about it.., i have a positive view of it in the future....anything can happen in just a second.

Article like this is very useful, thank you for sharing it and also inuding your opinion.

Thanks for setting 50% to smilenigeria. Though this will go to steem power instead of steem...what we need now is STEEM, not STEEM power.

I think it is certainly within the realm of possibility that Binance could also collapse... sadly, the entire cryptocurrency industry has been so far removed from its idealistic roots to become a viable alternative to fiat currency... and instead has put itself squarely into the realm of good old fashioned "Wall Street Greed" that's all about filling pockets... not about "banking the unbanked."

Am I worried about a Binance collapse? Only to the extent that it would further drive the overall crypto industry and its already shaky reputation even further into the ground.

 3 months ago 

Thank you @denmarkguy for dropping by and sharing your view on discussed topic :)

Hopefully you had peaceful christmas holiday

Since Binance’s balance sheet hasn’t been disclosed, and there is no standard for disclosure, it is incredibly risky for anybody to hold accounts with that crypto exchange. And even if Binance disclosed a balance sheet, I highly suspect the majority of assets that Binance holds is crypto, and crypto is vulnerable to devaluation right now…like FTT tokens…therefore the balance sheet would not be stable.

For example… CZ Interview Clip

"I remember it was $2.1 billion at the time and it was all in FTT tokens which are now worthless."

If FTX was so well capitalized, why did it send $2.1 billion "worth" of native tokens that it created, why not pay in dollars, or bonds? It's kind of like me paying for a beer with "money" that I created out of a table napkin that my beer was sitting on. And why did CZ/Binance accept those tokens?

Is CZ incompetent? Or was that $2.1 billion deal an act of financial churning (moving money because it looks good on paper rather than bringing any value)? So he could say that they did $2.1 billion deal, which implies that there is plenty of liquidity…LOL.

And has Binance accepted other "worthless" token for other "deals?"

What else is Binance up to that they're not disclosing?

When Lehman Brothers failed in 2008, the US Investment Bank, it took months to figure out how much exposure they had to worthless assets and too much debt.

The interviews and statements of Changpeng Zhao do not give me confidence. If anybody has any assets on Binance Exchange, I would transfer them into your own wallet, soon!

This reminds me of the 2008 financial crisis when investment banks would trade and hold on their books worthless mortgage-backed securities deriving their value from continually high housing prices that were based on credit/debt that no one ever planned on paying back, because there was no income.

In a credit contraction, it is very risky to hold any money that is not insured by a government on a centralized custodial. Binance is not an exception.

 3 months ago 

Thank you @fijimermaid for dropping by and sharing your view on discussed topic :)

Hopefully you had peaceful christmas holiday

I don't know why I feel it like some strong hands are behind this FUD and they are trying to make Binance collapse. Maybe I'm wrong about it. But as some political people are not happy with CZ they will try their best to defame CZ and Binance as much as they can because politics is a dirty thing :)

Those that we fear the most do not usually happen.

I have seen this not in cryptocurrency but in real offline work. What we fear the most that it will happen but next day or at that time it never happens. But still we can't say much because anything can happen in this market. I hope CZ will not let Binance to collapse.

BTW I like Binance more than any other exchange :p

greetings @crypto.piotr
This situation certainly puts many people to think and their hands to debit, but I also believe that Binance is much stronger and can as it is already doing withstand the FUD, even though as you mention it did not see it coming.

This situation will also serve for Binance to consolidate much more and like all the destabilizing actions they have done in the world will serve as a boomerang as an impulse for cryptocurrencies to take an upward course.

CZ is no angle, he is a business man but still I don't think he misuses customer funds the way SBF did!!!

Already a audit was done in Binance, they are suffiently collaterised and it survived withdrawals, so its unlikely Binance will face liquidity crunch...

It's about how these guys misused your funds...

and I like to go a step farther and say, CZ has redibiility...

he has reimbursed funds of customers when their accounts were hacked in Binance you know??

He has made provisions for it... SAFU stuff...some fees goes to a account to fund contingencies...

I would say, Binance can be trusted mostly from what I know...

He is more sensible, not as currupt as SBF who used to donate funds to politicians and was damn close to these regulators, which is why it took so long to catch him...

CZ does not get into big controversies, but yes, once a while yes...

In general I feel your funds will be safe in Binance, but sensible people self custody these funds ...

I don't use Binance anyway... shrugs... it used to be my favorite exchange

 3 months ago 

I always love seeing your comments @mintymile. Thanks for dropping by :)

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Greetings my friend, good point you bring to the table.

One day I was discussing about the excessive tension in the crypto world and Binance in general.

I personally believe that before Binance falls we will see the exchanges below it fall in the list of the most prestigious ones.

From my point of view the FUD attacks that are developing, are well coordinated because the blockchain and especially Bitcoin, represents a problem for large governments, so they only have two ways to go:

  1. Eliminate the problem, and we already know that for BTC to disappear the Internet must disappear and that at this time is practically impossible.

  2. Buy the problem: so that large corporations or governments must knock down the price in order to buy BTC at a better price.

Unfortunately, exchanges like FTX have been put on a silver platter to be destroyed and I consider that Binance is much more robust and with more time in this aspect, so I consider the disappearance of the largest exchange in the world is far away.

 3 months ago 

Thank you for this amazing comment @madridbg

Hi @cripto.piotr.

Actually it is very pertinent your post thanks for taking your time to share it with all of us, after the FTX debacle it is not easy not to feel fear for the possible fall of another Exchange like Binance, for this moment and how everything has developed I share what you express:

At this point, Binance has plenty of time to prepare for a liquidity crisis and for some sort of "blow back" aimed at them. Which makes it unlikely that they will collapse.

I think the same, and I hope it will be that way, after this, this Exchange will come out stronger. Greetings.

This is a nice subject to be discussed as I have also listened to people's view about the whole thing that is happening in the crypto space lately. Binance, if I'm not mistaking, is the largest crypto exchange (judging by trading volume). This means that anything that affects it will definitely affect the entire crypto space - you think it might happen?
Meanwhile, one thing you can't take away from CZ is his brilliant business acumen. I think he must have made provisions for moments like this.
Well, let's see how things go.

Thanks for sharing buddy

Greetings @crypto.piotr ❤️😊

There's definitely no doubt that CZ Binance is very experienced and knowledgeable when it comes to Cryptocurrency and Blockchain technology. This effect can also be observed in the way he handles cases related to Cryptocurrency and Blockchain Technology.

I don't think Binance will go through the same downfall FTX went through due to the fact that Binance CEO (CZ) is a well experienced and he posseses knowledge and wisdom in preventing issues like that from occurring.

I think you need to read about the cause of FTX downfall from the beginning. It actually happened when CZ wasn't comfortable with SBF actions around October or November or so which led to CZ Withdrawing their stake or investment from FTX. This affected FTX on the long run such that CZ wanted to buy the crypto exchange itself but he later changed his mind due to some reason.

You will definitely agree with me that ever since SBF had issue with CZ, it was from that moment the exchange started collapsing after some information about SBF got leaked out to the masses.

It was really nice learning from your write up buddy but I am more optimistic about Binance not collapsing like FTX due to the mastermind (CZ) handling the project.

Thanks for sharing this great post with love from @hardaeborla and I hope you have a great day ahead ❤️😊❤️😊

 3 months ago 

Thank you for this amazing comment @hardaeborla

Hi @crypto.piotr
The point you have raised is good and in crypto market anything can happen. We have seen couple of events this year and now there is a lot of uncertainty.

In my opinion, Binance will be able to survive as they have got enough time to make themselves stand in any situation as FTX has gone through. Binance is a leading exchange so it's obvious that they have to deal with many things and even media criticism.
Have a nice weekend.

Hi Piotr
Its a need to be careful in the crypto market considering the current situation but I think Binance is not going anywhere.
CZ has been trying to open and answer most of the questions possible and I have not seen any crypto exchange founder doing the same.

Again its crypto and anything can happen here but still, I belive that Binance will be here for the long term and I am not really worried.

 3 months ago 

I always value your opinion as an observer @okalok and I'm glad to see you on the same page.

I believe, that binance could explode if they would not expect a blow from some "3rd powerful body". But now they surely prepared themselfs for potential liquidity crunch.

Hello @crypto.piotr

I may be wrong, but I believe that nothing to regret will happen with Binance, I am calm as I know that the whole US media scenario against Binance, these actions are an obvious attack from those who were unveiled by the FTX case. I don't think Binance will collapse.

Best regards, be well.

There are less chances of Binance collapse but at the same time I want to say that any unexpected things can happen because crypto market is weird so yes there is possibility. I left binance 4 months ago and I am not using it, Instead I prefer to use decentralized exchanges for trade and they are even better to hold crypto than any centralized exchanges. For more safety, ledger wallet is the best than all.

 3 months ago 

Hi @luckyali.writes
Which de-centralized exchanges would you recommend to someone who only used Binance so far?

Hello @crypto.piotr

There are many Decentralized exchanges such as Uniswap, DeFiSwap, PancakeSwap, 1inch etc.

Dear friend @crypto.piotr

For me Binance is the soul of the cryptocurrency world a collapse would be devastating, I don't think that will happen I trust CZ to do things right, I think your analysis is correct anyone with enough time to get liquidity can survive, FTX lacked time but Binance has it and I think it will survive and with Binance strong the cryptocurrency world can only get better.

god bless you

 3 months ago 

Thanks for sharing your view with me buddy :)

Interesting topic. For me, I don't that Binance would collapse, it is way too established and grounded for something to happen just after a collapse of FTX exchange. Even if its liquidity is low, which I think it isn't, they would find ways for it not to collapse any time soon.

If Binance should collapse that's the end of cryptocurrency and I don't think crypto would end any time soon.

 3 months ago 

Love to see you again being around @menoski :)

it is way too established and grounded for something to happen just after a collapse of FTX exchange

I believe, that binance could explode if they would not expect a blow from some "3rd powerful body". But now they surely prepared themselfs for potential liquidity crunch.

If Binance should collapse that's the end of cryptocurrency and I don't think crypto would end any time soon.

That would bring crypto back to super low levels and most likely for many years things would be horrible for many. But crypto will not die because it's solving many world problems. And there is no other alternative or solution which could replace crypto (by solving those problems of millions and millions of people).

Oh, I will like to say no
It would sure bounce back as a matter of fact this is best time to invest in binance.

I don't know where I read but Binance US was buying Voyager's Crypto Assets for $1 billion. I believe CZ Binance is trying to shift the focus of people there. He will not give us easily.

 3 months ago 

Thanks for sharing that news @hunzlakhan with me.
I will google it up and read more about it :)

It's obvious that, the crypto space is currently in a mess, and Binance as the leading centralized exchange is not left out. It will not be easy for CZ and the team and I believe they'll overcome these challenges. We just need to be careful with the worth of funds we put on these centralized exchanges

 3 months ago 

Thanks for dropping by @salamdeen

I believe, that binance could explode if they would not expect a blow from some "3rd powerful body". But now they surely prepared themselfs for potential liquidity crunch.

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Hello @crypto.piotr

In particular I think that anything can happen in the crypto world, it is very difficult to predict taking into consideration that there are many things that one does not see coming but finally happen, I am not worried because I do not have in my hands a solution in case binance goes bankrupt.

Logically in the news scenario you can see how FUD is what they throw at binance and that is because it is the largest exchange and with more transactions worldwide, I think there are renowned players and weight within the crypto world that do not want binance to collapse, so I think it will not collapse, but if it were to happen I would not be surprised.

Hello dear @crypto.piotr, in the crypto market anything can happen, with this extensive winter in the market many projects have gone bankrupt, binance is a giant that would strongly affect the market if it came to fall. In my particular case I try not to have all my money in exchange to avoid that any problem that occurs affects all my liquidity.

So long, have a great week.

 3 months ago 

in the crypto market anything can happen

That's very true @amestyj. One can only hope that neither binance or tether will collapse, as it would prolong current crypto winter for quite a long while. Probably it would take years to recover and come back to even current price levels.

Cheers, Piotr

Ok, buddy my personal opinion: in the „life” of every CEX, it is included in the deck that the regulatory frenzy can have negative effects on the market. The result of this, if the trading volume on a crypto platform is low, can result in countless events in which people cannot access their cryptocurrencies temporarily or for a longer period of time. That is why the only solution is DeFi❗

📣 But that in itself is not enough. A major paradigm shift is needed. ✅

👨‍🎓 Ecosystems must be learned to value and independent from the world of FIAT currencies. Services and values must or would should be, able to be exchanging completely independently of the FIAT system. In short, this means that it would be worth promoting the possibility of spending cryptocurrencies directly. If all the time the main interesting thing is how we can convert cryptocurrencies into one of the FIAT currencies, then the entire Earth will be in the grip of those who invented the FED system on December 23, 1913, for the rest of its life.

💡 Just for an example is a great opportunity because you buy something in direct with you cryptocurrency and not just with Bitcoin.

💭 The FTX scandal did not happen by itself❗ Consider the interesting relationship between Sam Bankman-Fried and Gary Gensler. The legislators' concept is never to do something to protection for people, only to regulate is the goal for them.

⚖️ Just look at the aspirations: Bitcoin is not a stock, but all other cryptocurrencies are. I wonder why this is their pursuit?

I tell it! Bitcoin is more of an asset than a cryptocurrency, if you look at its white paper you won't even find the word cryptocurrency in that. Bitcoin is such a basic protocol that we can rightly call Noah's Ark in the world of cryptocurrencies. For this very reason, it would be pointless to reach for it, for example just to lower your network costs. And since the network cost is not low, the large crowd who do not invest, but only „play” with cryptocurrencies, will obviously move in the direction of altcoins. And the aim of the central government is exactly that they should be regulated, but not for the benefit of the people, the point is only the total control where essential goal is eliminate the freedom as an lifable option!

In summary, the essence of what I have to say is nothing more than understanding the meaning of the word ecosystem. An ecosystem is a system model that can sustain itself. If a system can't do this, it's not an ecosystem 😉

❓ A poetic question, but anyone who wants to can answer it: if there is a cryptocurrency that you can earn directly through your work, and you can also spend it directly, and you have the technological / technical background that you can also store it, through a solution that results in nobody and nothing can access it, then really have to worry about CEX platforms or what is the value of FIAT expressed in foreign currency❓

 3 months ago 

Thank you for this amazing comment @gastrocrutch

The short answer is no. I'm not worried about a potential collapse of Binance any time soon...As you mentioned they got enough time to prepare themselves and build up that $60b war chest to face any liquidity crunch

Another thing I feel is that most of the FUD against Binance has been created by either main media outlets to please their endless craving for attention, or by FTX allies to paint a picture that it wasn't the only one misusing user funds

Not to trust CZ or anything, but I think he's been at least a little more transparent than SBF (former CEO of FTX)

Thanks for sharing...Best regards :)) @crypto.piotr

hello @crypto.piotr
Good topic for discussion, certainly very contextualized and up to date.

Particularly I think there is a lot of FUD, but this itself can generate a real chaos in Binance, obviously CZ can prepare for another eventual massive outflow of capital, however, that even if it does not break Binance, if it would greatly affect the crypt environment in general.

I think there is a lot of attack from many sides with the intention of sinking the cryptomarket.

Particularly I have nothing in Binance, I only use it to exchange to pesos, already stopped using, I have almost nothing in any other exchange, for precuation, I prefer to have the little I could have in self-custody wallets, like tronlink or metamask. But not in exchange.

The danger remains, I feel that market turbulences could be near.

 3 months ago 

I always love seeing your comments @josevas217. Thanks for dropping by :)




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