Bitcoin Forum

Is it really over for crypto if Binance exchange or Tether go bankrupt like FTX? Can crypto survive without the centralise organizations and projects?

Let me be more specific and refer to only bitcoin. Bitcoin was existing before Binance. Can water still exist if no human living on earth again?

Tether is just a stable coin and nothing more. There are other stable coins like USDC and the better ones like DAI.


The first bitcoin trade which was now recognized as the Pizza day was not carried out on an exchange, it was direct p2p.

Bitcoin created first or Binance exchange created first? and if I remember correctly, binance has only been around since 2017 and before that we also had many other centralized exchanges. All of them have a lifespan and are always replaced by other exchanges from time to time. So there is no reason that when binance dies the cryptocurrency will also disappear, but if bitcoin dies there is a high probability that the market and exchanges will be gone.

Binance or tether or any other company or project is just a part of this market, so without them there would be another product to replace them.

By the way, this was the first bitcoin exchange, at that time with 1$ we could buy thousands of bitcoins ;) ;).
https://i.imgur.com/p255o3P.png

If they go down — like hacked/insolvent, then it's a safe assumption that we should expect a heavily extended bear market due to how big these entities are. Does it mean that bitcoin/crypto will die? Definitely not, just that people will be generally uninterested for a while.

There will be a massive panic and many will lose their money, that's it.

After a while things will go back to the way they used to be, it's going to take time and people will be given more reasons to trust DeFI more.

Two days ago Uniswap took over coinbase rank and that's a very good accomplishment, sooner or later people will have to trust Decentralised exchanges more than those centralised exchanges and even centralized blockchain.

bitcoin was just fine before binance but if tether go bankrupt, the market may struggle to have a bullrun since mostly may just be using other stablecoin that has less supply. i'm not going to even think binance will collapse. they are not doing what Bankman was doing.

Though I'm optimistic that life will go on, it will be really very difficult to go on without Binance in the crypto space. My emphasis is on "really very" there. Just take a look at how the FTX saga is dragging other stuff into issues and bankruptcy with it. You can imagine how many other exchanges that rely on Binance to draw their sources from it and what will happen if Binance goes down with what's happening with little FTX compared to Binance.

It will drag the development backwards. We can recollect how difficult it was a few years ago buying cryptos on the internet. More so, newcomers to this industry find it easily accessible to be on Cex than Dex because of the numerous cryptos therein.

Exchanges come and go but we can not deny that if Binance collapse like FTX, its impact should be bigger because they are a bigger exchange than FTX. Their chain, Binance Smart Chain is bigger than Solana too.

Unless their report - Our Commitment To Transparency (https://www.binance.com/en/blog/community/our-commitment-to-transparency-2895840147147652626) - is cooked, their finance management is good and healthy. According to this, they did not use customer money inappropriately and did not take too high risk like FTX.

Tether is a biggest stable coin and its impact (if it collapse) would be bigger than UST impact in May 2020.

Whatever happen with Binance and USDT in future, I am sure governments will launch more laws and execute more strictly regulations on cryptocurrency and blockchain. For future, it is good, not bad.

If (or when) Binance will go down, another exchange (or, hopefully a DEX this time, although I doubt is) will rise and take the lead. It has happened before. Many even thought that FTX will replace Binance, heh.
Plus, "crypto" will probably get a well deserved blow, since most projects' reason to exist is just to suck up money. Although many will just switch to Bitcoin intead of Tether, for example.

Actually, without Tether the system (the prices!) could become clearer and more honest, since Tether is, let's be honest, overly inflated.

I don't know why people keep relying on centralized stuff no matter how hugely disappointing that is...

yeah, it's hard to think a market the size of Binance could collapse. but seeing what happened to FTX, one-day Binance may also be in big trouble.
but if that happens, maybe other markets will also emerge which are already big enough to compete with Binance.
the market will certainly get a big influence. especially about BNB assets which will also fall. maybe like the incident that happened to FTX. or even more terrible.

Even if they go down, that doesn’t mean crypto is finally dead (but will remain bearish for a long while if that happens).

Binance isn’t the only exchange in the world.

Tether USD isn’t the only stablecoin in the world.

Bitcoin was born way before Binance and Tether USD existed in the space.

So crypto isn’t going anywhere.

Over for crypto... no ways that's far from it! Binance isnt the first exchange to be in the big boys league and if they ever get into that entanglement its most likely another exchange will take its place and crypto living moves on...and the crypto way of doing business will get more smarter and better.

Crypto was doing fine just before the centralized exchanges came and it will continue to live on if a Cex like Binance goes down,only problem with this is many users will be affected as they might be holding coins on the exchange which means markets will bleed for some time.

Can we do without them? Let's just say we have become comfortable with a Cex and at this point cannot do without them.

It would be a general shitshow, no questions about it, given the Binance market position and amount of people that are using Tether  for either trading or hodling (creazy thing to do, but people do it nevertheless). But no, it wouldn't be over for crypto and certainly not for Bitcoin. It would be the end for thousands of useless shitcoins though and probably more exchanges/platforms that are in some way connected to Binance.


Sure it can, but centralize exchanges would continue to exist, as before.

Binance was the trigger, so that's pretty much the final frontier for people trusting any centralized service that's ever been set up throughout crypto history. At least bitcoin will return to being the true cryptocurrency it was originally (all transactions will be happen on the blockchain) although it will lose most of the users. The good news is that altcoins will actually be worth zero.

Just as others have commented, no it isn't over for the cryptocurency industry if those scenario you mentioned above does occur instead it'll push for more decentralization of the industry and increase awareness for the use of more of dApp instead of centralized ones. Just to take you back memory lane, back when Mt. Gox exchange was still in function and arguably more powerful than Binance, it got hacked and that didn't end the cryptocurrency movement. For more clarity read;.
As you can read, back then Mt. Gox was incharge of 70% of all Bitcoin transaction yet that hack didn't end the Bitcoin movement. Today although binance is the most dominant exchange but we have other options out there that even as dominate as Binance is, institutional investors still has other exchange they used for their purchases.

CEX exchanges come and go

when i started getting into bitcoin,  btc-e was my favourite. yea it was simple and unregulated and risky, and yep.. its not around now
nor is mtgox

heck even bitstamp had some popularity presence early on.. but now no one really talks about it.

then there were like XX others exchanges that came and went
cryptsy, cryptorush, mintpal..... plus alot more

with the FTX contagion affecting the DCG by messing with genesis and circle. and where coinbase/greyscale are not providing much in the way of showing their cold wallet storage.. i would be looking more towards the exchanges listed on the DCG portfolio for possible more contagion hits.

If Binance and Tether go bankrupt, I expect a massive (temporary) crush in Bitcoin's price, right as well as the elimination of 99% of altcoins. Most altcoins exist due to funding from large entities such as Binance, and I presume most altcoin holders keep them on their Binance account, because it's either too difficult for them to find an open-source, non-custodial wallet, or it might ironically not exist.

I think they're planning to provide proof-of-reserve due to the recent incident with FTX.

Bitcoin will survive and keep going, other altcurrencies will suffer casualties and closedown, exchanges will also follow suite and close down, and all investors with them will have the same experience others have with FTX and the likes.

Depends on what the status of the market is at the said time.  There have been a few large Exchange hacks and drops that had an insignificant impact on the markets.  I think if the markets are powerful enough, a hack or a bankruptcy can be forgotten so much easier than during uncertain and bearish times.

Anyway.  No matter what short term impact it might have, long term Bitcoin is unaffected by this.  Even if it is an event that shakes the whole market stronger than ever before, after all Bitcoin is here to provide a DEcentralized ecosystem so why would it suffer.  It is not Bitcoin's fault but its users for not using Bitcoin the traditional way and choosing convenience over anything.

-
Regards,
PrivacyG

These your thinking is a very big expensive joke, as FTX and Luna clash, which imagination of tether to clash, the stoke market will be affected heavily, because of the trading pairs, but investors and traders will be involved fully, which is not possible for tether to go under bankrupt, if it happen that means the game is over.

we have to see what happened in the past when binance and tether did not exist, so when binance and tether went bankrupt like FTX, the impact would only be seen at the beginning but over time it will return to normal.
the crypto market will no longer be destroyed if both of them go bankrupt, the crypto market will only be destroyed if the internet does not exist because there are no transactions taking place in the market.

For Binance and Tether to crash simultaneously is better imagined that real. I have read those asking if Bitcoin existed before Binance or the reverse. No matter how you see it, if Binance and Tether fail, especially fail simultaneously, that may be the end of Crypto. Bitcoin may survive but it will lose a large number of it's community.

Just the FTX bankruptcy, many people has lost faith in crypto and vowed not to return again.
Binance is the largest exchange and Tether is the largest stable coin and the second highest coin after Bitcoin.
If it happens it will be a total disaster.

Nothing is going to happen to Bitcoin if Binance or any other centralized exchanges goes down, or if any stable coins stops existing.
Sure, price is going to tank and go down as reaction to market conditions and bad news, but Bitcoin will continue to work as usual, maybe with temporary higher fees.
I hope people will learn from incidents like FTX to learn more about importance of P2P trading and decentralized exchanges like Bisq.

This depends on where you store it. If you keep it on an exchange then this will be a big disaster for you. If binance goes bankrupt (for example), what happens to bitcoin maybe just decreasing in trading volume but this could be temporary just remember, the value of bitcoin fell in terms of price not with the bitcoin it self. If no centralized exchange, i believe community will open P2P trading like the first time bitcoin used for pizza.

what is clear is that it could have a very bad impact on the condition of the Bitcoin price. and it will take us a while to be in a bear market trend. what happened to FTX certainly gave us valuable experience not keeping our assets on the exchange.

if what happens is P2P trading, isn't that a reality regarding the use of Bitcoin as a transaction tool? I mean not as a traded asset, but as a tool for trading transactions.

Has all this time Bitcoin depended on Binance exchange or Tether.?
Bitcoin has been around long before there was Binance exchange or Tether, without these two exchanges Bitcoin can still be exchanged. The impact may be slightly felt because they are a large exchange, but it will not stop Bitcoin from circulating because other exchanges will continue to provide services for buying and selling transactions.

I have never considered that the USDT token is really a reliable value due to its centralized nature and characteristics that completely contradict the philosophy of the blockchain in terms of privacy and security. They are tokens that were issued by the trading platforms, and they succeeded in circulating them after an unprecedented support campaign. These tokens are the digital version of fiat money from which they derive their legality.
At the same time, I think Binance is too big to fall. Especially since it has no real competitor. It caused the FTX platform to crash recently.

Bitcoin when it started their was no opened exchange or obvious exchange popular like binance to exchange Bitcoin in 2011and especially in some countries that was not familiar with Bitcoin, but their was exchange of cryptocurrency and bitcoin through p2p trade, i could remember my first Bitcoin and how i sold it, it's was through someone that needed it, and finally i sold my bitcoin and have my fiat currency. So i believe that without exchanges right now, Bitcoin will still go a Long way

After the recent collapse of FTX, the SEC met shortly after and said that creating a legal corridor to regulate cryptocurrencies should be accelerated because of the consecutive scams and crashes occurring in a short time. I don't know if the regulation will be good or bad for us, there are a lot of mixed opinions around it. But one thing I do know is that like it or not, regulation is inevitable and I believe it will come sooner than we think.

Disaster since Tether and Binance are the top company on there respective industry that holds the majority of the crypto money. We will not reach the current value of Bitcoin without Tether injecting more supply to purchase Bitcoin while Binance is the most used exchange for newbie and whales that wants to trade on Bitcoin. By only to there treasury will give us a hint on how destructive they are in case that huge amount of crypto holding will be selling off to the market current liquidity.

Binance FTT holdings cause the current market dip so what’s more if they will dump all there holdings just liquidate there asset considering they are still top of there respective industries.

It will affect the market greatly, tether and binance are the top exchange and top most used stablecoin,. This two have played a major role in enabling btc transaction. Binance have open doors for people from different part of the world to be able to buy btc we can't argue that.
Take what happen with ftx as an example, see how the market react to the news and the event. Of course it will not be the end of btc but it will put a deep fear in the minds of investors. Many investors will lost the access to buy and sell, believe it or not, not many p2p can be access by many countries, most of them don't even support African countries. Bro the negative impact will be huge so lets hope such never happens.

Citizens from countries whose governments do not adopt crypto will be the most affected since the current platforms grant access to it from any citizen in the world with very few exceptions.
I believe that decentralized platforms will receive more attention due to the lack of incidents related to them, and trading rates will drop sharply due to the decline in the demand for investments in the field of crypto.

You are right that shitcoins will disappear if that happen because some are in binance with no impressive volume. It is good already that binance started to delist some of the shitcoins.


The crash that happen in FTZ will not stop centralized exchanges. They will exist as more people ready to hodl in exchange

Of course, this would be a disaster, and the entire crypto market may collapse due to the lack of confidence of investors, but as for Binance, I see that it is a strong platform and they have great measures that they take to keep the users’ funds safe. They have the best security systems in addition to specialized teams that work seven days a week very hard to make sure that the funds of the platform users are safe, Binance also has the SAFU Fund, which is the Secure Asset Fund for Users, and it had been topped up to a billion dollars. I do not recommend keeping money in the exchange platform whatever their commitments and transparency, but Binance is a strong platform by all standards, and the USDT team has its reserves In emergencies, they can restore the currency price in the event of a drop from its stable price.

Binance and its tokens are part of the cryptocurrency industry, and while the exchange and its CEO rose to prominence in the industry, their downfall will have little impact on cryptocurrencies, current pricing, and the technology that powers them. 

Bitcoin was conceptualised almost a decade before the incorporation of Binance. The industry will get impacted, but cryptos are here to stay. 

A disaster.

Binance's collapse would affect almost everybody in a very bad way and tether's collapse would be ten times worse because almost every exchange is using tether's liquidity nowadays. Almost every crypto is being traded against tether nowadays, not against the US dollar.  Tether going down means liquidity is going down. When here is no liquidity, the price can be anything. $100 or $100k. It doesn't matter because nobody is trading it.

And depending if any of that money gets recovered, that "for a while" could be years. Way longer then any bear market before this.
Currently there's scary amount of trust for tether and binance. Like something i've never encountered before these in crypto.
Old timers remember that mintpal seemed trustworthy too. And i am betting not many Cryptsy users were expecting what happened.

Compared to Binance, they weren't even regulated, but as we can learn from FTX, there's not nearly enough oversight from regulators yet to prevent Binance from crashing.

As for Tether, for sure that there will be a massive effect for bitcoin's price if ever something crazy goes off badly with it and that's why it's quite worrying but, the effect will just be temporary and then bitcoin will have its price stable again just like what it is right now. And the same goes for Binance, there could be the effect of it but it's not going to be big as what we're worrying about with it. We saw how FTX scenario has came and the market still continued to run so I guess, the whole market don't depend just on Binance or Tether or any other comparable company or cryptocurrencies.

If Both go bankrupt, it could lead to a significant decrease in the value of Bitcoin, as well as the demise of the majority of alternative coins. This is because many altcoins are supported by large entities like Binance, and it is likely that many altcoin holders store them in their Binance accounts due to the lack of accessible open-source, non-custodial wallets.

Better imagined that real as you have rightly put it. Just few days back, a relative of mine also ask similar question and i told him not to think about negative things  :D because i really do not want to indulge him in such discussion.


Exactly, ftx debacle was not easy on investors and the entire market, almost all investor was in a panic frenzy even though some may try hard not to show it. Now replace that scenario to binance and tether at the same time  :o it is definitely not worth imagining

Well it's worth imagining if you believe it's going to happen. Because imagine the money you would make by having your money ready in other exchanges that would accept high leverage shorting. I have some money in Bybit for just in case. I wouldn't even need highest possible leverage because everything would crash so much it would be hard not to make ton of money by shorting.

But you really need to be pessimist for the whole crypto scene to prepare fully for something like that and i am guessing those people don't have anything in crypto right now.

Whatever you do @OP don't trigger it in this upcoming bull run coz am planning to cash out for the first time, perhaps wait for the next one  :D
Lol, It sounds funny but it is not funny, dude, stop playing around. Binance and usdt going down at the same time! it will cause a gigantic crash in the market that I fear the market will not recover from it. Better to think about positive things, like bnb hitting 2k, btc to 100k in this coming bull market  ;) 

Not really over, but it will take a very deep dive towards the bottom of a very severe bear run and then it will start recovering slowly with other exchanges and stable coins replacing the later. On a contrary, Bitcoin has its roots too deep in the industry, going mainstream in a look of countries and spreading its wings, and CZ also mentioned that they have enough funds to cover them if anything like that happens with them. So, I don't think Binance will face any issues in near future.

I think it's important to remember that while centralized organizations like Binance and Tether have played a huge role in the growth of cryptocurrencies, they are not the only players in this industry.

There are many decentralized projects and exchanges out there that do not rely on this centralized organization.

In fact, one of the main selling points of cryptocurrency is that it is decentralized and not controlled by any single entity. In fact now in March 2023, the crypto market is normal.

Crypto not gonna over but one time is sure that the price will be hit hard. Crypto especially bitcoin was already there before binance and tether was born. So I don't think that crypto will wipe out. But after price is plunge the altcoin will be hit hard too and probably there is dozen will be dead.

But let us pray it will not happen hahahaha

I don't think it's necessarily the end of crypto if a centralized organization like Binance or Tether goes bankrupt. While these organizations do play a significant role in the crypto ecosystem, there are a lot of other factors that contribute to the success of cryptocurrency.

If you look at the history of crypto, it was initially created as a way to decentralize financial systems and remove the need for central authorities.

So, in theory, crypto should be able to survive without these centralized organizations. That being said, I do think it would have an impact on the overall crypto market if one of these organizations were to go bankrupt ;D. It could potentially cause a drop in prices or even a loss of confidence in the industry. But I don't think it would be the end of crypto altogether.