The recent hack and accusation of money laundering on Binance exchange might play a big factor on the exchange losing it's reputation as the largest cryptocurrency exchange in the world.
You might be on to something there.
The only way we will know what will happen is when withdrawals are allowed, At that point many users will pull their investment out and send it to other exchanges they signed up for while waiting for Binance to release their funds.
Even a small number of investors leaving with their crypto would seriously dent short-term customer confidence though they might attract some of those back in future along with newbies that were not aware of the previous hack.
