Binance is Becoming a Crypto Monopoly

[Dickiy]

It's quite dangerous for a centralized entity to monopolize crypto, from owning bandges to bullets; they want everything to come in contact with their ecosystem before crypto's actually see true success. But, Binance's recent movements is having the inverse effect, they are becoming a truly a dangerous threat to crypto entirely, this is in my opinion and sentiments.

Imagine Binance dictating which cryptos see success and which others fail, or in a different perspective; how people view success and failures through the lens of being affiliated or blessed by Binance, that's the direction we're headed in and how they want us to perceive what Binance brand actually means. They've done a lot of good for crypto as a whole since they were founded, but CZ is trying to expand and monopolize everything, for: power, money and what's probably most important to him, his fame and reputation.

I suggest the community start being critical about these power-house exchanges, especially Bianance since they are the largest by a mile (discounting all fake-exchanges). IEOs are a small indicator towards the centralization of power, giving the big guys the authority to dictate which coins you should be investing in. Crypto was not founded by someone telling you which coins you should invest or not invest in, it's always been a cycle of growth and maturing.

There are ultimately many repercussions that will be seen, for what's occurring right now. They will not been seen in the short-term, but will have lasting implications for crypto as a whole.

Again, Binance has done a great deal of good for crypto, a worthy topic in its own with: more capital, exposure, legitimacy...etc, the list is bigger than their biggest fault. But their biggest faults are treading into a major contradiction to crypto.  

There's no denying, Binance is appearing to be the main monopoly of crypto, a true centralized powerhouse. If there is one takeaway here, centralization is the single most dangerous idea or action to the very nature of all cryptocurrencies.


2019

The BitcoinSV Dilemma: For more detailed explanation https://bitcointalk.org/index.php?topic=5135400.msg50745817#msg50745817
Binance Hacked, Power plays: CZ Believes he can dictate the Bitcoin miners and blockchain. https://www.coindesk.com/binance-may-consider-bitcoin-rollback-following-40-million-hack



2020

The Steemit Takeover by Justin: https://www.coindesk.com/trons-takeover-of-steemit-is-internet-history-repeating-itself
More about Steemit: https://bitcointalk.org/index.php?topic=5229984.msg53952652#msg53952652
Binance's Acquisition of CMC: Binance Continues to make headway towards total crypto dominance: https://blog.coinmarketcap.com/2020/04/02/a-letter-to-our-users-post-acquisition/

I think this is a good time to bump this thread and the OP deserves some credits. It's not good to give too much to one hand. It's bad for crypto.

Obviously this thread is outdated in the respective dates and timelines mentioned, but in terms of the core concepts and ideas this thread is more relevant than ever. CZ is an intelligent individual and Binance has done a world of good for crypto as a whole. In the end it's survival of the fittest. Binance will continue to crush its competition and gain more market share. As long as user's feel safe* and continue to profit from Binance.

Coinbase is shackled by regulations in the U.S. to make any significant grounds. But where Coinbase ultimately lacks is on the international stage, the territories were Binance has claimed supremacy over all other CEX's. Binance is bounded by almost no country (due to being shielded by subsidiaries that are not linked to the core Binance company) and their pockets are deeper than any other business currently operating in this space.

Is a monopoly in crypto a good thing? No monopoly is good due to a stagnation in innovation. But the general sentiment is that user's don't really care about the core philosophy behind blockchain and cryptocurrencies as much as they used to. So having a monopoly isn't seen as a bad thing currently, but will become a bigger problem years down the line. Governments are also a big pressure on this front in terms of regulation. Although, that's an entirely different topic. I will say most of Binance's success has come from not obeying regulations or doing the absolute bare minimum. And any company executive would do exactly the same. There's no reason for Binance to do anything but the bare minimum in each of their respective countries they are operating in. That's essentially their edge along with their trusted brand name.

Why do so many people use it?
Currently, they have quite a complete range of products that can be offered to serve their customers and a very good reputation from all centralized exchanges, besides that they hold giveaway events at certain times so that users are attracted to use the platform, and also many projects built on the Binance network so the ecosystem of the Binance network is quite complex.

I don't advertise Binance, but this is what will be a thorn in the side of decentralized development, I can't imagine if Binance will crash any time soon like FTX, the domino effect will be more than we can imagine right now.
It's safe to say that everyone will switch to DEXs, but what percentage of them still believe in Bitcoin as an investment alternative and how long will it take for the market to recover if Binance crashes?
even though we know Bitcoin is different from Altcoin it will still be very influential like FTX.

That's why Binance can be like a dog that will bite its master at any time.

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[Jaered]

Its funny, isn't it. The rallying cry for crypto is 'avoid decentralization and the government and embrace decentralization' but it has turned out to be the reverse. The bitter truth is this: total decentralization is impossible. We cannot be entirely free of government or bank interference. And we need regulations too, if not crypto would go to the dogs

[mich]

Well they are becoming a crypto monopoly because of popularity. And it does not matter with the legal battles.
 
People still want to use the services. The CEO CZ now says there is 150 Million registered users on Binance. 

https://bitcoinist.com/binance-records-user-milestone-amidst-regulatory/

[Yudhisthir]

Well they are becoming a crypto monopoly because of popularity. And it does not matter with the legal battles.
 
People still want to use the services. The CEO CZ now says there is 150 Million registered users on Binance. 

https://bitcoinist.com/binance-records-user-milestone-amidst-regulatory/

It's not entirely a monopoly but Binance has become the synonym for crypto exchange for new users. It is larger than double of it's next competitor but there are several more exchanges that handles larger amount of transactions.
They haven't manipulated the market in their favor or against it's competitors. They have achieved the success purely due to efficiency and security of their service. It's about maintaining balance and innovating for security and customer service.
FTX was considered to be a good alternative for wholesale traders with their lower fees but the mismanagement of the exchange led to its demise.

[fzkto]

Well they are becoming a crypto monopoly because of popularity. And it does not matter with the legal battles.
 
People still want to use the services. The CEO CZ now says there is 150 Million registered users on Binance. 

https://bitcoinist.com/binance-records-user-milestone-amidst-regulatory/

It's not entirely a monopoly but Binance has become the synonym for crypto exchange for new users. It is larger than double of it's next competitor but there are several more exchanges that handles larger amount of transactions.
They haven't manipulated the market in their favor or against it's competitors. They have achieved the success purely due to efficiency and security of their service. It's about maintaining balance and innovating for security and customer service.
FTX was considered to be a good alternative for wholesale traders with their lower fees but the mismanagement of the exchange led to its demise.

Binance can be called a monopoly because they have no serious competitors in this market. They destroyed FTX, which was probably the only one who could compete with them. Now the bulk of altcoin trading takes place on Binance. Any user most likely trades on this exchange. The other major exchanges are seriously inferior to Binance.

[fmz89]

the movement binance take down ftx was genius, when they knew in the future will deal from sec and goverment worry if binance collapse because the ongoing case
will cause massive damage, that ftx already showing to u.s how bad if some crypto exchange collapses. know they worry to take down binance will be catastropic to many people. it might binance only paid penalty fine. and cz continue to dominate  

[mich]

Well maybe it is a monopoly have 128 Million users. But it wants to make it so people can communicate. Now there is now a Binance Messenger you can download but it does need a invitation code.
I will want to try this out when if I have a invitation code. I do my trading with Binance and think it is a secure exchange so I will trust a chat app from it. https://www.kryptomoney.com/binance-messenger-now-accessible-on-app-store-details/

[DaNNy001]

the movement binance take down ftx was genius, when they knew in the future will deal from sec and goverment worry if binance collapse because the ongoing case
will cause massive damage, that ftx already showing to u.s how bad if some crypto exchange collapses. know they worry to take down binance will be catastropic to many people. it might binance only paid penalty fine. and cz continue to dominate  

Sometimes I don't even want to start reasoning the amount of impact this possibility would have on the crypto market because binance for now is currently the biggest CEX, that's if not mistaking and taking such a firm down by the sec would definitely send negative vibe to all crypto users and the impact will be x3 of the one that FTX had on their customer but I know CZ is too brilliant to actually let that happen, he is what we can call a good business strategist and will do everything within powers to maintain such reputation in the crypto space.

[Biznesmen]

Let me clarify that monopoly means there is only one firm that dictates the price and supply levels of goods and services, and that firm has total market control. Here, firms are the price-makers because they control the prices of goods and services. And in a competitive market, prices are dictated by supply and demand.Here, I don't believe Binance will control the crypto price, but they will benefit from the transaction charges, of course. And moreover, if the market has more than one firm that has real potential, then only all of them will survive in this competitive market. But when it loses trust, then definitely people are not thinking about the market monopoly but the money they put in, even if it leads to a monopoly.

[Sophokles]

 

Well maybe it is a monopoly have 128 Million users. But it wants to make it so people can communicate. Now there is now a Binance Messenger you can download but it does need a invitation code.
I will want to try this out when if I have a invitation code. I do my trading with Binance and think it is a secure exchange so I will trust a chat app from it. https://www.kryptomoney.com/binance-messenger-now-accessible-on-app-store-details/

What is the problem with that if binance is a monopoly? BlackRock is managing 9Trillion worth of asset they are the real monopoly. What binance doing is trying to provide quality services and that's why they have so many customer. They are providing all the option to a customer that someone their customer needs. Users don't need to use any 3rd party platform to use any of their services its all there. Its like the crypto version of Alibaba.

[NASdaq]

This thread was created 4 years ago but it aged pretty well

[Kelward]

Let me clarify that monopoly means there is only one firm that dictates the price and supply levels of goods and services, and that firm has total market control. Here, firms are the price-makers because they control the prices of goods and services. And in a competitive market, prices are dictated by supply and demand.Here, I don't believe Binance will control the crypto price, but they will benefit from the transaction charges, of course. And moreover, if the market has more than one firm that has real potential, then only all of them will survive in this competitive market. But when it loses trust, then definitely people are not thinking about the market monopoly but the money they put in, even if it leads to a monopoly.

I believe that binance, being the number one exchange, has nothing to do with monopoly, because there are other exchanges that exists and are doing well too, like remitano. Binance is at the top because of their excellent services and integrity, nothing more, and therefore customers are more interested in getting delightful services from them than worrying about if the exchange is manipulating other exchanges to go down or delisting some crypto coins. When you have confidence in a company, you'll want to believe that every measures that it takes will be to the advantage of their customers. Investors care more about where their money will be secured than how the exchange treats their competitors. It's a normal thing in business, the big player wants to crush the ones under to remain at the top.