The Monopoly of Binance

[Abiky]

Ever since Binance started in 2017, it has aimed to become the world's largest cryptocurrency exchange by providing a wide selection of trading pairs, user friendliness, and ease of use. With its proprietary token known as Binance Coin, users are able to obtain discounts when hodling them, which results in lower fees in a trade. This model of trading cryptocurrencies has become quite popular, leading Binance towards an upsurge in user trust and popularity within just a few years since inception.

Now, Binance has launched Binance DEX (which will live on Binance Chain) which will be of great benefit to its BNB token in many ways. Comparing Binance against other leading cryptocurrency exchanges, it seems that it might leave other alternatives in the dust within the future.

This is somewhat good news for the adoption of crypto and Blockchain technology, as Binance becomes the leader of crypto trades and IEOs. However, there's a huge concern that if Binance becomes the only prominent crypto exchange, it'll be very bad for the crypto industry in general. The situation of Binance will be the same as Bitmain where it gains control or dominance over the crypto industry. Of course, Binance still has its competitors just like Bitmain in the ASIC manufacturing world. But, such competitors might not stand a chance against Binance, because of its established monopoly within the mainstream world.

Nonetheless, do you think that Binance has become a monopoly or is it too early to tell? What are your thoughts about Binance's current situation, and how would it impact crypto over the long term (either positively or negatively)?

[yangongear]

Maybe part of your opinion is right now. Binance is leading the current crypto market. They created trends and maintained that trend.
It can be said that Binance currently has a great influence on this market. Other exchanges need to change to attract more users and increase their competitiveness, thus helping to avoid the case that Binance monopolizes this market. Recently Okex announced about OKchain, as well as regular monthly launch of IEO, I think it is a positive signal.

[CoinsOrDie]

Binance story is about a cooperation that has mastered the art of controlling many business branches excellently. Monopoly Is not good for competition as it kills creativity but we can't take it away from CZ for being a brilliant capitalist

[Flux0z]

It's sickening that Binance even calls it a "DEX", because it's NOT A DEX.

A DEX is a decentralized exchange. This means:

NO KYC
NO REGISTRATIONS
NO GEO-BLOCKING

Fun fact: All nodes running their "DEX" is controlled and run by Binance themself, that's NOT how a decentralized exchange should run.

The best solution I've come across, is Stakenet's Lightning DEX solution, which will be running entirely on masternodes. This means, that when they launch, even if the DEVS wanted to, they CANNOT stop the DEX. With 2100 active masternodes, it's capable of running TONS of trades/seconds, especially because it's lightning compatible.
The reason they chose to use masternodes as the backbone, is because it allows the nodes to host all the chains. This means that NOBODY needs to sync with the network to use it, which makes it extremely user friendly, and I'm sure you'll have a hard time even noticing it's a DEX, once it's up and running.

Binance is the king of exchanges right now, but once REAL DEX's get's popular, and people realise that they can now trade anonymously with no KYC being forced down their throats, then I bet $1000 that DEX's will be the popular choice, and the monopoly of centralized exchanges in general will fade away.

[Mpamaegbu]

No one should begrudge Binance exchange its rightful place in the crypto space. CZ has paid the price through Due Diligence with several market innovations. It has gained the trust of many a trader and we can only hope it stays true and not go rogue like some exchanges in the recent past. However, I believe every worthy exchange with its own coin usually performs well in the market.

[sl8]

As a Binance user, I have not a single problem with them except their mobile app. Somehow it is not working for me at both devices.
P.S. Additional thanks to BNB 

[rosezionjohn]

When some newbies ask for an exchange to trade, we say Binance.
When some new projects come out, we asked "when listed on Binance?"

We should not be surprised if we see Binance dominate the exchange market since we (crypto community) patronize it.
It's ironic that we can now see its dominance as a threat.

[XSNsoldier6]

  I really don't have a problem with CZ or his company.  He is doing regulatory arbitrage and limiting certain markets because of retards in the US more than anything else.  That said, Defi has a role to play and Stakenet's DX will be highly useful. 

[jdarren]

Maybe part of your opinion is right now. Binance is leading the current crypto market. They created trends and maintained that trend.
It can be said that Binance currently has a great influence on this market. Other exchanges need to change to attract more users and increase their competitiveness, thus helping to avoid the case that Binance monopolizes this market. Recently Okex announced about OKchain, as well as regular monthly launch of IEO, I think it is a positive signal.

I agree that Binance being a monopoly is an opinion. I think they have created great influence in the market through their Binance Labs, KYC/AML compliance with firms like ciphertrace, backup plans for hacks and generally providing value to the entire industry. I am looking forward to seeing this exchange set itself apart

[dedocry]

I do not think that Binance will be the monopolist, it ideas with BNB tokens have already been copied by other exchanges and this idea will be copied also

[DarkDays]

It's definitely not a monopoly, there are several other exchanges that exceed Binance in trade volume for certain trade pairs.

Beyond this, Binance will never be as trustedworthy as something like Liquid, Coinbase or Gemini because it doesn't offer insurance over funds (and no, the 'safu' fund) doesn't count.

It doesn't even handle fiat, therefore Binance is far from cornering the market.

[taratorly]

Ever since Binance started in 2017, it has aimed to become the world's largest cryptocurrency exchange by providing a wide selection of trading pairs, user friendliness, and ease of use. With its proprietary token known as Binance Coin, users are able to obtain discounts when hodling them, which results in lower fees in a trade. This model of trading cryptocurrencies has become quite popular, leading Binance towards an upsurge in user trust and popularity within just a few years since inception.

Now, Binance has launched Binance DEX (which will live on Binance Chain) which will be of great benefit to its BNB token in many ways. Comparing Binance against other leading cryptocurrency exchanges, it seems that it might leave other alternatives in the dust within the future.

This is somewhat good news for the adoption of crypto and Blockchain technology, as Binance becomes the leader of crypto trades and IEOs. However, there's a huge concern that if Binance becomes the only prominent crypto exchange, it'll be very bad for the crypto industry in general. The situation of Binance will be the same as Bitmain where it gains control or dominance over the crypto industry. Of course, Binance still has its competitors just like Bitmain in the ASIC manufacturing world. But, such competitors might not stand a chance against Binance, because of its established monopoly within the mainstream world.

Nonetheless, do you think that Binance has become a monopoly or is it too early to tell? What are your thoughts about Binance's current situation, and how would it impact crypto over the long term (either positively or negatively)?

There are over 19000 exchanges on the market (according to CMC)

So how can we talk about monopoly in the market now? You can always prefer other exchanges. Do you have any bullies for Binance?

[Maxre]

binance has become a monopoly in the crypto world. I take some real examples, like any altcoin that has just entered the binace exchange, it will definitely experience an increase in price and volume.

[Red-Apple]

no it is not too early to tell, Binance has indeed turned into a monopoly and that was their goal from the start. right now they not only have the highest volume in the altcoin market but also they fully control the altcoins and many of their prices too. they can easily decide which coin lives or dies, which coin to pump or dump and  a lot more.

the only thing that is too early to tell is when will this monopoly be broken. in the past we have had many other exchanges that had such monopoly states such as poloniex but they all come to an end.
now i don't know whether Binance is going to be replaced by another centralized exchange like it did with its predecessors or this time will it be killed by real decentralized ones.

[pinoy.bolanon]

Binance has the right to claim it by themselves or us, since they are dominating in terms of trading volumes and the number of users and all others, but we could not tell in the long run, as the possibility of having a new exchange would eventually come at no time. For now, i like binance actually because its easy to transact business whether you are not a KYC verified, among all others binance dominates them all.

[MonsterV]

I also think so, and binance has indeed become a monopoly. Why? yes because so far binance has a very large influence in the crypto industry. This is truly a binance main goal, just look at them always developing and improving their platform to have trust in the market so that only their platform dominates the market.

But that does not mean that no one will be able to defeat binance someday, it could be the same fate as the previous exchanges that he defeated.

[tsaroz]

For any exchange or trade, the first thing comes in my mind is binance. They have a robust system, largest volume, low fees. So, why would people look anywhere else. With now Dogecoin finally added to the Binance, I have no reasons to look anywhere else.

[Ziskinberg]

Bininance doing a very good job and I think that now they are leaders and they deserve it. they develop themself faster and better than other exchanges

Exactly, they deserve on their success now, and why they were successful is because they also shared to the community their profits when you invest with their coin.

Other exchange only want to take a commission when you trade but by buying BNB token, you can benefit on the success of the exchange, and demand of the BNB now is also brought by the increasing number of investors and traders who are trusting them, especially now that they are also very popular with their IEO, I can see that this exchange will continue to grow, it's already a billion dollar industry but it could go to trillion if they'll take care and keep improving the business.

[Nalbo]

With all this discussion, I'd like to caution people that it's not a good idea to keep all of your asset in an exchange. There can be individual phishing attacks where the exchange won't be able to help you and not every hack could be covered by SAFU.

[ATSgrowth]

And it is bad? Binance is one of the most trustworthy exchange currently, they care about their customers, do you remember last time when they were hacked? They solved everything very quickly and transparently.