The Monopoly of Binance

[llecrf]

There are lots of crypto exchanges and Binance has always been the choice of many people to make a profit, the Dapp developers have also swapped at the Binance DEX exchange, there is always an increase in the price of new coins listed there, but I am not a Binance exchange user, because I prefer using DEX exchanges and Yes, maybe a monopoly has been done because every BNB coin holder will get a lot of benefits at the Binance exchange

[elisabetheva]

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

As long as the goal is for good, what do you say that binance controls and controls many branches of business. is something that is usually done by large companies, but will start kotraductive if binance will do a monopoly because it is no longer fair and all are regulated by themselves and others just follow the rules.

[carriagehoodlum]

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.

yes, that is to maintain the trust of their platform. and we can see binance growing with market confidence in them. trade is increasing, and amazingly now he is the best. whatever happens, it will not change the trust of traders and investors on their platform.

[accounting 181293]

it's still too early to say Binance has monopolized. good exchange is not just Binance now, there are many exchanges that are still good.

binance is good only because it provides innovation, the rest there is nothing different. maybe they can monopolize their Tokens (BNB), but for the whole I think it's very difficult.

[hrunya102]

Binance is doing everything right, in early 2019, in my opinion it Binance pulled us out of the pit, but it's too early to talk about monopoly, too many competitors, Binance has much to grow.

[el kaka22]

They are widening the gap as well, that is the weird thing. They are clearly the best one out there and they are basically controlling whole of the exchange market but they are still looking after getting more stuff, they got into IEO so they could corner the ICO market with new coins as well, they are now going into margin as well to get from bitmex, they are doing plenty of stuff that would eventually get more money from other people.

I am not going to be shocked if they open a casino as well in order to make more money, I know that is irrelevant to exchange but with the speed of improvement I am fully expecting dapps systems, games, casinos, interests, masternode sharing, collective staking and many more from binance all in one website to make themselves the sole survivor of exchange market.

[Abiky]

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.

Interesting fact. Binance has claimed its DEX to be decentralized, when theoretically it is not. This is more of a marketing scheme in order to attract most people from crypto land into using the platform. The term "decentralized" has become more of a niche than anything else, as companies take advantage of the situation in order to fool people like you and me (especially newcomers). The truth is, that privately-controlled Blockchains will never achieve true decentralization as there is a single point of failure. This is happening right now with Binance, where it's the only one maintaining its Blockchain network (Binance Chain) required for the DEX to operate as intended.

Seasoned crypto enthusiasts will understand this easily, but newcomers into crypto will not. Since many people still trust Binance, they're willing to continue using the platform despite its centralization risks. Comparing Binance versus other alternative exchanges, it seems to be in the lead every step of the way. As it continues to grow, its chances of dominating the crypto industry become higher each day. But, Binance's success will largely depend on the people themselves.

Nonetheless, I believe that other exchanges like Coinbase and OKEX have a higher chance of competing against Binance over the long term. Coinbase acquired a 0x-based exchange some time ago, while OKEX is creating its own DEX. Eventually, both Coinbase and OKEX will have their respective "DEXs" that will allow them to stay in par with Binance. Once this happens, Binance's dominance within the crypto market will be lesser than it is right now. Just my opinion

[bttmember]

I do think that increasing monopoly of binance is not a good thing atleast there should be some kind of healthy competition among top 5 exchanges but seems like binance is way ahead both in terms of providing products and services and also the volume, i hope even if binance stay ahead they will use this to help create awareness and crypto adoption among masses.

[Cnut237]

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)?

No I don't think it is or will become a monopoly, but you've raised a valid concern.
Binance has been really ambitious since it started, and has performed hugely well. I do expect it to probably increase its dominance, but I don't think it will ever reach that sort of monopoly stage. There is a limit to how far it can go. People will be too wary of one exchange ruling everything. If it ever reaches the stage of being that dominant, I would image that people will start to make comparisons to MtGox for one, and start to get very wary.

[DeepChipolino]

If this is a monopoly, then while it is the quality monopolist. If the team will always maintain the quality of work and all functions of the exchange(s), then I have nothing against such a monopoly. Of course, if they will not control the market to their avail only, which is very likely.

[InwardContour]

Binance is really my best exchange but your post makes sense. If everyone wants to use only Binance for trading and not other exchanges, it doesn't really look cool.  Well, over time Binance has proven to be the best from the launch of Binance chain, Binance DEX, Binance Info and now margin trading. It's really innovative and has impacted greatly to crypto space.

[Ucy]

Well, the crypto community should continue to inform newbies about the dangers of relying too much on any centralized platform that exists in crypto space
I kind of think that the long term goal of platforms like that is to corner majority of Crypto users then handover everything to people at the top.

[m0Ray]

What kind of monopoly can we talk about?  The management of Binance missed the moment when they could manage the market. Now Binance is a usual big puppet of Bitmex.

[michellee]

I don't think binance are monopoly the cryptocurrency because besides of binance, we have poloniex, bittrex, kucoin, and the other exchange. Although those exchanges are not too big as binance, binance still need to keep their work to be one of the best cryptocurrency exchanges. I think if binance launch their dex, it will make a hard competition among the other dex because now binance dex comes with a strong team and if the other dex doesn't want to beat by binance dex, they need to work hard and still competing.

[KimJongUnCoin]

What kind of monopoly can we talk about?  The management of Binance missed the moment when they could manage the market. Now Binance is a usual big puppet of Bitmex.

indeed,
i laugh at the moment when they reset global all user api keys

[Oceat]

it's still too early to say Binance has monopolized. good exchange is not just Binance now, there are many exchanges that are still good.

binance is good only because it provides innovation, the rest there is nothing different. maybe they can monopolize their Tokens (BNB), but for the whole I think it's very difficult.

Exactly what i thought!

Binance may be monopolizing as seen by the other exchanges/people but they deserve it since they were doing good in keeping the people to trust their exchange. They may be called monopolizing because of their token BNB, but that's not this is all about.

[Abiky]

Binance is really my best exchange but your post makes sense. If everyone wants to use only Binance for trading and not other exchanges, it doesn't really look cool.  Well, over time Binance has proven to be the best from the launch of Binance chain, Binance DEX, Binance Info and now margin trading. It's really innovative and has impacted greatly to crypto space.

Personally, I believe that Binance is a great crypto exchange. It has good customer service, and its trading platform is flawless. With many features available such as discounted fees (with BNB), and a DEX, there's no reason why people should hesitate to use it in the first place. However, the real concern is that if people only use Binance for performing crypto trades, it could bring a single point of failure towards the entire crypto industry. The moment there's a massive hack or Binance becomes compromised by the government, will be such where crypto will be doomed to failure.

After all, Satoshi invented Bitcoin's Blockchain technology to be free from middleman. No single point of failure, and censorship-resistance is key towards delivering a sound and stable system for anyone to use without interruptions. This means that anyone could easily acquire, sell, or send/receive crypto without the dreaded risks of traditionally centralized systems. But seeing that's not the case after a decade of Bitcoin's inception, shows us that Satoshi's vision of true decentralization will not be fulfilled anytime soon.

Nonetheless, it's best to bring competition within many areas of the crypto industry, in order to leverage centralization risks. Binance's success is largely determined by the people supporting it. If everyone chooses Binance over other crypto exchanges, then the crypto-exchange giant will become a monopoly. For the sake of crypto's future, diversification is the most ideal path to take. Just my thoughts

[neblidex_dev]

The Binance of today was the Mt. Gox of yesterday. Unfortunately, as new people get into crypto, they will fall into the crypto honey pots known as centralized exchanges. There really needs to be a push from those experienced with cryptocurrencies to push new users away from keeping all their coins at centralized exchanges.

[Mahanton]

Binance is really my best exchange but your post makes sense. If everyone wants to use only Binance for trading and not other exchanges, it doesn't really look cool.  Well, over time Binance has proven to be the best from the launch of Binance chain, Binance DEX, Binance Info and now margin trading. It's really innovative and has impacted greatly to crypto space.

Personally, I believe that Binance is a great crypto exchange. It has good customer service, and its trading platform is flawless. With many features available such as discounted fees (with BNB), and a DEX, there's no reason why people should hesitate to use it in the first place. However, the real concern is that if people only use Binance for performing crypto trades, it could bring a single point of failure towards the entire crypto industry. The moment there's a massive hack or Binance becomes compromised by the government, will be such where crypto will be doomed to failure.

After all, Satoshi invented Bitcoin's Blockchain technology to be free from middleman. No single point of failure, and censorship-resistance is key towards delivering a sound and stable system for anyone to use without interruptions. This means that anyone could easily acquire, sell, or send/receive crypto without the dreaded risks of traditionally centralized systems. But seeing that's not the case after a decade of Bitcoin's inception, shows us that Satoshi's vision of true decentralization will not be fulfilled anytime soon.

Nonetheless, it's best to bring competition within many areas of the crypto industry, in order to leverage centralization risks. Binance's success is largely determined by the people supporting it. If everyone chooses Binance over other crypto exchanges, then the crypto-exchange giant will become a monopoly. For the sake of crypto's future, diversification is the most ideal path to take. Just my thoughts

It would really come to that sort of point and we are already currently seeing it heading that way.I cant blame them yet Binance had done all sorts of things to make
their reputation to the top where doing or offering things which is ahead into its competitors which means they are worthy to be used or preferred by most users.
I disagree on the thing you said that incase Binance would be compromised by the government but it isnt enough for crypto doomed to failure.It may majorly affect but not coming to a point on completely disaster.

[Abiky]

It would really come to that sort of point and we are already currently seeing it heading that way.I cant blame them yet Binance had done all sorts of things to make
their reputation to the top where doing or offering things which is ahead into its competitors which means they are worthy to be used or preferred by most users.
I disagree on the thing you said that incase Binance would be compromised by the government but it isnt enough for crypto doomed to failure.It may majorly affect but not coming to a point on completely disaster.

We'll see. As Binance grows each day, its dominance across the crypto market becomes greater. Its success will largely depend on the people using it within the mainstream world. Of course, the fall of Binance will not completely destroy crypto. But, it will negatively affect the industry as prices for major cryptocurrencies go down the drain. After that, it'll take quite some time before crypto recovers to its original prices.

Despite the centralization risks Binance provides, it's somewhat convenient for the average person. The trading platform has a user-friendly interface and a wide variety of trading pairs to choose from. Binance also has a "DEX" which makes use of its BNB token for trading operations. Users who hodl Binance Coin (BNB) will benefit over the long term as it provides them with discounts and several other goodies. If Binance manages to maintain its outstanding customer service and ease of use, no other exchange will be able to compete against it.

Which is why, the world's most popular crypto exchange is starting to become a monopoly sooner than we've thought. We need more competition from other exchanges that will greatly rival the existence of Binance. But none have been able to rival Binance, since it's too powerful already. The best we could do is to support other exchanges as well, instead of using only Binance for all of our crypto trades.

Nonetheless, the future of Binance looks very bright as it gains traction within the mainstream world. Still though, the trading of cryptocurrencies may become highly centralized which is not good at all. But at least, crypto will survive because of its decentralized and distributed nature. Just my thoughts