Binance and centralization

[OmegaStarScream]

I think no one could deny the fact that Binance is taking over the crypto market, they managed to do that in a very short period of time.

They've started by Binance.com (crypto to crypto) and a few days ago, they released Binance jersey which is supposed to be for the UK & Europe (fiat trading).

They are also developing a decentralized exchange which you could find a sneak peek preview of it on YouTube. I'm not sure how decentralized this is going to be and whether It's going to be open source or not but it seems like they're controlling almost everything.

Don't get me wrong, I still think that Binance is a very reputable service and worth using, and after all, they're just a business trying to make money but do you think that this control could affect us (the community) badly in the future?

[LeGaulois]

The real problem is people don't care about decentralization, and that's the majority and the reality. I bet a lot don't even know what is it.

The community won't see any problem with centralization. Sure, the purists will see it but since the majority will matter much...
Perhaps too, Binance is currently the only one (able) to expand its business as it is doing right now but we could see more companies doing the same in the future They each have just their own strategy.

[FleurTunisienne]

When it comes about adding trade services using Fiat money, then no way but centralisation.
I didn't hear about a decentralized market using Fiat but i can't expect how binance is willing to deal with it in the appropriate way.

[Patatas]

99% of the traders give two shits about decentralization. Hell, they don't even bother creating a wallet outside of an exchange wallet. It is of least concerns to them. Binance already has data about their customers due to the KYC policies. I used the service once but not planning to use it ever again. Doesn't matter how decentralized they claim their service is as long as it's controlled by their trademark it will always have a centralized structure.

[squatter]

I think no one could deny the fact that Binance is taking over the crypto market, they managed to do that in a very short period of time.

They've started by Binance.com (crypto to crypto) and a few days ago, they released Binance jersey which is supposed to be for the UK & Europe (fiat trading).

They are also developing a decentralized exchange which you could find a sneak peek preview of it on YouTube. I'm not sure how decentralized this is going to be and whether It's going to be open source or not but it seems like they're controlling almost everything.

Don't get me wrong, I still think that Binance is a very reputable service and worth using, and after all, they're just a business trying to make money but do you think that this control could affect us (the community) badly in the future?

Their altcoin trading service puts others (like Poloniex and Bittrex) to shame, not to mention the ability to trade without KYC. Their dominance is going to be hard to overcome.

I'm a bit more skeptical about their entry into fiat trading. Their fees seem ridiculous compared to competitors. Binance.je is charging 7 GBP/8 EUR for deposits, 20 GBP/20 EUR for withdrawals and 0.1% trading commissions -- no maker/taker. Coinbase Pro charges 0 GBP/0.15 EUR for deposits, 1 GBP/0.15 EUR for withdrawals, 0% trading commission on maker orders and 0.1-0.3% on taker orders. It seems like a no-brainer, especially when you consider the size of the order books.

[gentlemand]

I'm a bit more skeptical about their entry into fiat trading. Their fees seem ridiculous compared to competitors. Binance.je is charging 7 GBP/8 EUR for deposits, 20 GBP/20 EUR for withdrawals and 0.1% trading commissions -- no maker/taker. Coinbase Pro charges 0 GBP/0.15 EUR for deposits, 1 GBP/0.15 EUR for withdrawals, 0% trading commission on maker orders and 0.1-0.3% on taker orders. It seems like a no-brainer, especially when you consider the size of the order books.

Yup. They're going nowhere with those costs. I guess we'll see how that develops.

USD is the biggie but if they start to dabble in that they're going to be in a whole new world of pain. Without that they're going to be big but not overwhelming. Even if they avoid USD at some point they'll be brought to heel regarding the KYC stuff. Japan already did it. I expect others to follow.

[OmegaStarScream]

And the control over the crypto market continues. It's now possible to buy BTC, LTC, ETH, XRP using credit cards and they have also launched over the counter trading a few days ago.

[NeuroticFish]

The real problem is people don't care about decentralization

Speculators (and their bots) will clearly have positions on the exchanges with the biggest volumes.
The centralized exchanges suits them best because of the off chain transactions, where they can buy and sell and buy again all day with much lower fees.

And most don't understand that exchanges have become the Banks of crypto, having so much money in their cold wallets (hopefully) that they can easily destabilize the market or use the real money for their own needs, since many don't really withdraw.

[CryptoMobster]

I think no one could deny the fact that Binance is taking over the crypto market, they managed to do that in a very short period of time.

They've started by Binance.com (crypto to crypto) and a few days ago, they released Binance jersey which is supposed to be for the UK & Europe (fiat trading).

They are also developing a decentralized exchange which you could find a sneak peek preview of it on YouTube. I'm not sure how decentralized this is going to be and whether It's going to be open source or not but it seems like they're controlling almost everything.

Don't get me wrong, I still think that Binance is a very reputable service and worth using, and after all, they're just a business trying to make money but do you think that this control could affect us (the community) badly in the future?

I think it ultimately depends on the consumer mindset, we will always have people who will trade and we know that they know diddly squat about the rest of the industry. But we also know we have boffin's within the space who know nothing about trading.

All I want to see is safe exchanges that we can trust. If Binance can provide that; its a step forward.

[LeGaulois]

The real problem is people don't care about decentralization

Speculators (and their bots) will clearly have positions on the exchanges with the biggest volumes.
The centralized exchanges suits them best because of the off chain transactions, where they can buy and sell and buy again all day with much lower fees.

And most don't understand that exchanges have become the Banks of crypto, having so much money in their cold wallets (hopefully) that they can easily destabilize the market or use the real money for their own needs, since many don't really withdraw.

I know and I think it's cancer in the crypto world, it shows that they're not interested in the cryptocurrency ideology, money matters and nothing else. As long as the cow produces milk they will be there to suck it.
I agree with the Banks of crypto and thinking about it's not much different compared to how banks were born centuries before. People gave their gold to be stored but never withdrew it or rarely, so the smart dude started taking advantage of this opportunity to offer loans to others and thus earn interest.