How Binance Is Becoming Too Powerful (and really scary).

[novusordo]

So I wrote this on Medium.com, if you want to read it on Medium you can find it here: https://medium.com/@creampuff/how-binance-is-becoming-too-powerful-4550f6155f5d

Here is the article:

Before beginning, let’s introduce you to Binance. Binance is a company which ran an ICO in 2017 and launched its cryptocurrency exchange during the same year. They quickly became very popular, and a few months after its launch, the exchange was already the largest one in terms of daily volume. Binance, and even more their CEO, Changpeng Zhao (CZ), is constantly incentivizing companies to use Binance Coin (BNB) as a payment method.

Besides, they recently relaunched Binance Launchpad, a way for users to directly participate in ICO’s on Binance. A few days after that relaunch, most of the major exchanges had already announced their versions of Launchpad, showing the impact of Binance in the cryptocurrency world. And even more recently, Binance Chain, was launched. Binance Chain will not only power Binance DEX, Binance decentralized exchange, but will also power tokens.

That’s scary.

Why?

Because if we take the tokens powered by Binance Chain for example, they will become incredibly dependent of Binance. And actually, it’s already the case without even taking in consideration Binance Chain. If we take a look at a low-cap coin listed on Binance, SONM for example, if they were delisted of Binance, their project would be considered as dead, because it wouldn’t have any volume anymore.

Quick side note: I’m not blaming Binance here, with this article, I’m blaming the other exchanges who aren’t capable of competing with Binance and Ethereum not being capable of competing in terms of scalability with Binance Chain. I actually like Binance, I really do. They have a great exchange, they know what they are doing, and they are certainly the most professional exchange I know. So I don’t have any problem in regards with the product itself, the only thing I’m saying is that they are becoming too powerful.

So the main problem behind Binance Chain is that it gives too much power to Binance because with their blockchain, Binance will be able to put even more pressure on cryptocurrency projects.

Imagine you have a company which has created a dApp and a token based on Binance Chain. You raised funds through Binance Launchpad, and were listed on Binance Exchange. Because you are fully based on Binance, you start accepting BNB, logical right?

Congratulations! You are now officially fully dependent of Binance.

Your dApp activity depends of Binance, most of your clients use BNB instead of your token because it’s much easier, the trading volume of your token fully depends of Binance and 95% of the people who are hodling your token are Binance users because, remember: you ran your ICO on Binance! Because of that, the majority of your token supply is located in Binance wallets.

The result is that your company’s success entirely depends of Binance, not you.

As a conclusion, I think it’s fair to say that Binance is becoming too powerful.

I agree with your submission. Changpeng Zhao is doing his best to monopolise the market. From Exchange markets to blockchain development and he's doing them all right. Its little time before he becomes the biggest figure in cryptocurrency

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[Adriano2010]

Well i agree with what you say, but no totally, this happen because people use exchange and if most people already use Binance exchange that means they are too powerful? If people will not like what happen they can choose to not use anymore exchange and this will make they change their strategy but if people like then this is it.

[takngantuk]

yes maybe on one side the bnb scared me. this coin can affect the price of other coins. I think Bnb is very strong today, and it's actually not good for the long term. maybe in the future the bnb will manipulate the market, because he is very strong it might just happen.

[powerman24]

Even if we admit that Binance is doing many great and innovative things it could be dangerous if one exchange becomes so strong and have such a big impact on the market. Crypto is designed to be decentralized and the opposite is happening lately.

[MalakEnay]

It is indisputable that Binance is going through a very successful stage, and without a doubt they deserved it by making this exchange the best and safest of all, so instead of criticizing that apparent concentration of power, other competitors should make serious efforts to reach the high standards of Binance, because all the features that have made them deserve the confidence of investors are the result of a large investment and a strong motivation to innovate. No one prevents others from doing the same, and I would hope that in the near future we can find a more competitive and really advantageous exchange market for investors.

[Gary Levanevskii]

Binance showed how to develop the  exchange in order to make it number one. There are a lot of exchanges in the world of cryptocurrency and none of them have such popularity as Binance.

[bisdak40]

Even if we admit that Binance is doing many great and innovative things it could be dangerous if one exchange becomes so strong and have such a big impact on the market. Crypto is designed to be decentralized and the opposite is happening lately.

Binance is continuing to make some innovations to make their company big in the world of cryptocurrency and this must be followed by other exchanges to compete with Binance if they don't want to be left out. BNB investors are very happy right now as their holdings shoot up in terms of value, this is what they reap for trusting the Binance team and the project overall. They are now enjoying the profit which i think the main reason why we are here.

[coinsycrip09]

yes maybe on one side the bnb scared me. this coin can affect the price of other coins. I think Bnb is very strong today, and it's actually not good for the long term. maybe in the future the bnb will manipulate the market, because he is very strong it might just happen.

that's right, i am also worried that the BNB is not good enough to be a long-term investment.

i also saw some coins that like this happened several times in the past, pumping high even though bitcoin and other altcoins were in bad condition. but the age of the coin is not too long, in the end they fall and again move to follow bitcoin like other altcoins. but we don't know how the future is, maybe the BNB will be different from the fate of other coins.

[AjithBtc]

These days more discussions were going on relating to BNB. There are some suggesting it to be the best investment for the year while there are people who mention the same as the scary asset for long term holding. From my understanding the market of Binance is quite strong and it'll continue to show growth with fluctuations relative to the bitcoin market serving as a good asset for trading.

[johanesrobin]

binance has a large community that continues to grow. I'm sure binance will be the best exchange.
even some exchange now refer to binance. just look at some exchangers starting to make IEO and imitate binance.

[g4r1n1m]

every success in this space is good for the space.. it cant become a monopoly
there are many other options and they all will follow with options for customers

[steveabrahams]

Binance is not that powerful but it's just only the start, tbh i'm fine with that. If binance can become big and can make cryptocurrency become better then i'm okay with that. There are pros and cons but Binance still not that powerful for now, maybe it will happen in the future though, to become too powerful.

[asriloni]

Well i agree with what you say, but no totally, this happen because people use exchange and if most people already use Binance exchange that means they are too powerful? If people will not like what happen they can choose to not use anymore exchange and this will make they change their strategy but if people like then this is it.

Almost all of people are using it and they got a lot of money. Dude, remember this money is the main resource for any company to expand its service and create a big monopoly to the various sectors. I guess that's what make him feel scary with it dude.

[hellyah070]

I wonder what makes us fearful about the development of Binance on the market? What if we see its improvement on a positive way, rather than to speculate some misleading information that can cause market fluctuation in a negative way, I am supporting Binance since then, and I am very proud of it right now.

[BlueStackz]

I wonder what makes us fearful about the development of Binance on the market? What if we see its improvement on a positive way, rather than to speculate some misleading information that can cause market fluctuation in a negative way, I am supporting Binance since then, and I am very proud of it right now.

Rather than being fearful of Binance, we can simply just encourage others into doing better too; Binance has been very hardworking since the time they were created which we all could see through their moves, they must have had sleepless nights in making sure they get their projects working in such a short time.

I don’t think Binance has ever engaged themselves in activities that will affect us negatively in this crypto space, all they have ever done is to create a conducive environment that will make us have a smooth transaction in this crypto space, so what Binance really need right now is us to keep encouraging them in their hard work, and I don’t mind even of it becomes a monopolized exchange.

[Red-Apple]

this has been a common thing among the centralized exchanges. from time to time one of them gains a gigantic power in the altcoin market and then they always abuse it to their own advantage. i remember Poloniex was a big one a long time ago and they always decided which coins to get pumped and when to dump that coin back again.
there is nothing we can do about it, but to migrate to decentralized exchanges.

[Nezerlan]

This is why decentralized exchanges are the best. Unfortunately, binance is aware of this influence they have and that is why they are creating their own decentralized exchange as a fail safe

[Astvile]

They are just improving and proving theirselves that they are truly top tier when it comes in cryptocurrency exchanges,they are just a succesful team who is helping the community using their services

[ZloiRediska]

But personally it scares me that colossal power which begins to concentrate in the hands of the owners of the exchange Binance. This is a threat to the decentralization of cryptocurrencies.

[CryptoIyke]

The Binance CEO and the entire team are very innovative and I think that is affecting the coin price. Binance is the most valued exchange coin and the first in this kind of venture. The coin is widely listed across other exchanges more than any other exchange coin and so many innovative ideas that breeds a lot of confidence. I have since joined the fomo gang