Is Binance too big to fail?

[iTradeChips]

Binance is striving because it has been improvising. If you cannot improvising or adapt in this sector then you will fail. I do not think it will fail in the future because it has a leader who has been taking a calculative risk. I agree that it is centralized but at the same time, it is transparent too. DEX like uniswap has now become its biggest competitor and only the future will tell what it does next?

There is always saying:"decline right after flourish". This also exists in the crypto market, for example, K line does also exist as a parabola.
Anyway, if Binance have already reached its peak, then it will fall naturally, it is just a simple phenomenon.

I do try to think exactly how the fall will happen. I mean you mentioned that it will fall naturally, which for me means it will die a natural death not caused by anything like humans for example. All I can think of when it comes to natural death is the loss of a customer base. When there's less and less people coming to the exchange then there are no fees to earn thus no profits that would help maintain the website. In the long run either they buy other exchanges and integrate theirs to them, or perhaps do other things that would ensure the survival of their exchange.

[imstillthebest]

they can fall but its not easy because they are big  . we have exchange before that got rekt but i guess its because they are not trying their best to come up with a
something new like binance are doing  .
binance identify the problem in crypto and make a solution .
binance is just an exchange and even if they are centralized , they cannot turn decentralize crypto as centralized and theres still many decentralize exchange out there that is functional . no worries .

[jesselui]

Until now, I only used the binance exchange. But I did some research and I heard that the binance exchange sometimes breaks down with large purchases and sales. A similar situation happened in the crash on May 19. This is why the binance is slowly losing power.

[michellee]

What are your thoughts? Is Binance too big to fail? If not, why? Do you think Binance has too much power/influence over the crypto/Blockchain industry? How will it affect crypto (either positively or negatively) in the long term? Your input will be greatly appreciated. Thanks in advance.

There are no "too big" to fail because if the time comes for Binance to fail, it will go down and will fail to be the bigger exchange. Binance gets support from the trader who still uses it for the exchange and traded so many coins on that exchange. But if there is a new or old exchange that can do better than Binance, maybe slowly Binance will lose its reputations and their member will move their funds from Binance to the other exchanges.

I think you remember the time before Binance become bigger, many traders use Poloniex and Bittrex to trade. The problem that makes traders moves their funds from Binance is about KYC verification in Poloniex and Bittrex, and that makes big transfer funds from those exchange, Poloniex and Bittrex, to Binance.

Maybe those cycle will repeat by themselves in the future, but now, Binance still is the top exchanges that many traders still use.

[Johnyz]

Until now, I only used the binance exchange. But I did some research and I heard that the binance exchange sometimes breaks down with large purchases and sales. A similar situation happened in the crash on May 19. This is why the binance is slowly losing power.

Every exchanges have experience such downtime, and I’m telling you no exchange so far that can compete on what Binance did, they simply great as of the moment but still its vulnerable to such problems. I love Binance on how they handle Hacking incidents and because of their SAFU program, their reputation is still intact. Binance is great but far from being perfect, we can expect a pump and dump as well on their platform, but the good thing is they handle every problem very well.

[TeQuiero]

I don't think Binance is something too big to fail. To name an exchange can replace Binance, I believe it's FTX. Sam Bankman-Fried - the founder of FTX is following CZ's path by creating his own universe: FTT token, Solana blockchain, DEX, lending platforms... But considering what CZ's doing, I don't think he will fail. He's a wise man, has good vision and he sees things from investors' stand point.

[Dadan]

Until now, I only used the binance exchange. But I did some research and I heard that the binance exchange sometimes breaks down with large purchases and sales. A similar situation happened in the crash on May 19. This is why the binance is slowly losing power.

Not only binance that gets high blockchain traffic, but there is also some other big exchange that experiences it like WazirX, Coinbase, and other crypto exchange. I don't think they can prevent it, but it's sucks when you lose money because of the outage of the exchange site. I've been using Binance since 2017 and haven't got any problem yet. For me, It is still the best crypto exchange right now.

[Taufik blackspade team]

The chance of failure on Binance is very small compared to the large trading volume that is centered on it, the number of trades currently running on Binance has surpassed Ethereum, meaning there are so many people who are actively trading in the Binance market, this is a positive point that supports Binance to keep growing and minimizes the likelihood of failure.

[m.rifki]

The chance of failure on Binance is very small compared to the large trading volume that is centered on it, the number of trades currently running on Binance has surpassed Ethereum, meaning there are so many people who are actively trading in the Binance market, this is a positive point that supports Binance to keep growing and minimizes the likelihood of failure.

Everything in the crypto market does have the possibility of failure but if you say binance will fail, it sounds more like a joke, I agree with you, Binance has now grown into one of the most popular altcoins even binance trading activities are able to surpass ETH for At this point in time, this fact is enough for me to dismiss the notion that Binance will fail.

[ILuckyGuyI]

Binance is one of the strongest exchanges and maybe even the best now I think. But I can't say that it is invincible of course. There is always a possibility for failing also but it is a very low chance when it comes to the biggest exchanges in the industry.

[devollito]

Binance is big but there is no one entity in this world is too big to failed. There are still possibilities binance will fail. But if binance failed i can not imagine how the matket willcrash, it will hurt whole crypto currencies market. Thats why we need to make another binance so there is no one big player and the impact to market is not big if something wrong happen.

[ivankoh]

What are your thoughts? Is Binance too big to fail? If not, why? Do you think Binance has too much power/influence over the crypto/Blockchain industry? How will it affect crypto (either positively or negatively) in the long term? Your input will be greatly appreciated. Thanks in advance.

I don't think that Binance has become too powerful/influence in the market.

Yes, they are big, but just like the rest, they are just one part of the big equation, it is just a ripple in the big sea. And if they fall, I don't think that we will be affected drastically, there are still a lot of exchanges out there that can take what they have left. There are rumors that they are under heavy scrutiny in the US side, so worse is, they may have to tighten their binance.us and face US regulations.

It really isn't.  I think binance has actually had a lot of federal investigations related to surplus pools and financial disclosures.  However, they didn't have a problem, expanding binanceus just met the specific countermeasures they needed to make to ensure fairness.  The binance issue will be strongly related to the BSC launcher, but several security-related incidents from BSC have held back their macro growth for this year.  However, I still predict Binance will remain an ancient tree going forward for crypto legacy.

[wxa7115]

Binance has grown into a force to reckon with since its establishment in 2017. In just 4 years since inception, Binance dominates the crypto market being the largest cryptocurrency exchange in the world. Its most successful venture has been the launch of a public smart contract platform dubbed "Binance Smart Chain". The native cryptocurrency "BNB" went from being worth cents to hundreds of dollars (USD) in just a few years since inception.

It seems to me that Binance has huge influence over the crypto/Blockchain industry. Sometimes I wonder if the world's biggest crypto exchange is too big to fail. With no signs of decline, Binance is on a road to widespread success in the mainstream world. This is bad because it'll make crypto heavily centralized.

What are your thoughts? Is Binance too big to fail? If not, why? Do you think Binance has too much power/influence over the crypto/Blockchain industry? How will it affect crypto (either positively or negatively) in the long term? Your input will be greatly appreciated. Thanks in advance.

When people use the expression too big to fail they are referring to institutions that in the case they failed it will cause chaos on the markets and governments rescue them in order to avoid this fate.

Binance fulfills the first part of the definition as it is the biggest exchange and it is the owner of one of the most powerful coins in the market as well, but it does not fit the second part of the definition, no government will ever save binance and if anything they will do what they can to see it crash and generate enough panic to make this market crash even further.

[Ghondronk]

Anything can happen in any moment. We do not forget that, in our world, nothing is permanent. Anything can fall, disappear, fail, or get destroyed at any time. Prior to Binance, there were several prominent exchanges in this arena but one small vulnerability might have caused the loss of those positions. Hence, do not rely on one particular currency, exchange or person. Don't keep all of your eggs in one basket.

[Fivestar4everMVP]

Binance is not to big to fail, Infact, no company is too big to fail as long as crypto is concerned, even in the outside world, I still don't think any company exists thats too big to fail, a simple or small wrong move can cause disastrous damages to the company, but speaking of binance, binance already have too much power in the crypto space if am asked, and sorry to say this but if binance fails, it will sure affect the entire crypto market in the worst way, but the thing is that the market will aways recover later, but then, the fact is binance will affect the market much more than we all can ever imagine, I hope in the future, more great decentralized or maybe centralized exchanges spring up that will take some power aways from binance and the likes so no exchange has the power to affect the market if the said exchange goes down.

[JooBra]

Binance is not to big to fail, Infact, no company is too big to fail as long as crypto is concerned, even in the outside world, I still don't think any company exists thats too big to fail, a simple or small wrong move can cause disastrous damages to the company, but speaking of binance, binance already have too much power in the crypto space if am asked, and sorry to say this but if binance fails, it will sure affect the entire crypto market in the worst way, but the thing is that the market will aways recover later, but then, the fact is binance will affect the market much more than we all can ever imagine, I hope in the future, more great decentralized or maybe centralized exchanges spring up that will take some power aways from binance and the likes so no exchange has the power to affect the market if the said exchange goes down.

I agree with you that every company can fail and go bankrupt but generally people go for safest option. Binance is the best in that regard in crypto space and I hope too there will be some other big exchanges like that in future.

[drwoo]

Binance has grown into a force to reckon with since its establishment in 2017. In just 4 years since inception, Binance dominates the crypto market being the largest cryptocurrency exchange in the world. Its most successful venture has been the launch of a public smart contract platform dubbed "Binance Smart Chain". The native cryptocurrency "BNB" went from being worth cents to hundreds of dollars (USD) in just a few years since inception.

It seems to me that Binance has huge influence over the crypto/Blockchain industry. Sometimes I wonder if the world's biggest crypto exchange is too big to fail. With no signs of decline, Binance is on a road to widespread success in the mainstream world. This is bad because it'll make crypto heavily centralized.

What are your thoughts? Is Binance too big to fail? If not, why? Do you think Binance has too much power/influence over the crypto/Blockchain industry? How will it affect crypto (either positively or negatively) in the long term? Your input will be greatly appreciated. Thanks in advance.

Well if they don't screw it up legally in the most important jurisdictions / markets I don't see them slowing down anytime soon. They have established subsidiaries all over the world, which is quite smart as any country causing them trouble could also lose them as a major player in their industry. Binance established a smart network that makes them highly agile should they get in trouble in one place, they'll just go elsewhere.

[Mpamaegbu]

What are your thoughts? Is Binance too big to fail? If not, why? Do you think Binance has too much power/influence over the crypto/Blockchain industry? How will it affect crypto (either positively or negatively) in the long term? Your input will be greatly appreciated. Thanks in advance.

Nothing stays up forever. There are times and seasons for everything. It will take just two major hacks or an incident of the arrest of CZ Binance by SEC or his death or rumour of corruption among the top echelon of Binance staff to possibly rattle Binance. What I'm trying to say is that no exchange is infallible, Binance inclusive. Before 2017, there were strong and robust exchanges like Bittrex, Poloniex, Yobit and Coinexchange. Today, those exchanges aren't reckoned with. In fact, Coinexchange has shut down. So, Binance isn't that too big not to crumble. Though I don't wish bad for it to happen. If it happens, the world world come to an end because of that. Another alternative will spring up.

[RealMalatesta]

When people use the expression too big to fail they are referring to institutions that in the case they failed it will cause chaos on the markets and governments rescue them in order to avoid this fate.

Binance fulfills the first part of the definition as it is the biggest exchange and it is the owner of one of the most powerful coins in the market as well, but it does not fit the second part of the definition, no government will ever save binance and if anything they will do what they can to see it crash and generate enough panic to make this market crash even further.

I 100% agree, but I think that is because they do not bribe the right people. Look at banks, they suck and they do their job horribly and they are rarely ever successful in the long term so they always bankrupt and get saved, without any help from governments all banks would be bankrupt in 20 years, we would have zero banks left, because they do their job horribly.

However they get saved and given bail money constantly, why? Because, they work amazingly well with politicians and pay them insane amount of bribes and that is what gets them the bail money, give 100 congressman 1 million dollars and you have 100 congressman in your pocket for 100 million dollars, then get 1 billion dollar bail out money from their votes and you are done. This is basically why the fact is that we end up with bad politicians and poor people whereas banks get super wealthy. Binance doesn't bribe anyone as far as we know, and that is why they won't get bailed.

[Asuspawer09]

That is obviously not that thing even though Binance is big it could still fail because cryptocurrency is just a risky investment, since bitcoin could go down its market price the same as other altcoins.

Since cryptocurrency is not regulated all of it could end and the exchange could easily be stopped, we already witness exchanges gets bankrupt because of the fast drop in the market price of cryptocurrencies.

We can consider it as a very risky investment as well, but the big exchanges like Binance just lessen the chance of failing since they have a lot of experience on how to operate and securities, etc.