Binance worth more than sum of European banks?

[bbc.reporter]

It might be close according to 3 Arrows Capital cofounder, Su Zhu who is also a known to have become one of the largest investors in the cryptospace. I have speculated that FTX would be the Binance killer, however, it appears that Binance's competitors might not have enough funding to do this if Su Zhu's speculation on Binance's networth is true.


Do not attack this man

Is Binance worth more than the sum of all European banks now? Might be close

Source https://mobile.twitter.com/zhusu/status/1503228704247644165?s=12

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That is ridiculous, how can Binance worths more than the whole European banks? Not even comparing it with one or two banks. Binance is the largest crypto exchange but as people are getting to knowing about cryptocurrencies, there are new exchanges that are developing. No KYC is one of the reasons Binance growth was more than those of Huobi Global and some other exchange, not that Binance offer better services, but now Binance mandate KYC. Cryptocurrencies are getting regulated and there are a lot of competition, people should not expect Binance to grow more than usual.

[Lucius]

Does this mean that someone thinks that Binance is worth between €40 trillion and €50 trillion? It is a public fact that they make huge profits not only from having (like most) very expensive fees but also from their token and listing various crypto garbage in their offer. Yet someone has recalculated quite a bit, as Binance had a trading volume of around $2 trillion in 2020, and all EU banks in 2019 had a total asset value close to €50 trillion.

The amount of total assets held by EU banks expanded in 2019 after a few years of consecutive contraction. This time enlarged by approximately €3 trillion from the previous year amounting to €49.3 trillion (€32.4 billion in the euro area and €13.1 billion in the non-euro area). The expansion came basically from gain in the total assets in the euro area countries (4.8%).

[LoyceV]

Does this mean that someone thinks that Binance is worth between €40 trillion and €50 trillion?

The assets they hold aren't the same as the bank's value. I'm actually surprised by how low the value of large Dutch banks is: ING is worth 37 billion, ABN AMRO is worth only 10 billion. That means Coinbase is worth slightly more than ING.

As for Binance: I wouldn't be surprised if they're mostly forgotten 10 years from now. New Fintech competitors can emerge much faster than competitors for traditional banks.

[dkbit98]

Is Binance worth more than the sum of all European banks now? Might be close

This is not even close if we are counting only legal and reported earnings from CZ and Binance, but who knows how much they have unreported.
They made a bunch of money doing gymnastic escaping regulators for years, and I remember nobody could ever find real location for their office.
I don't consider FTX to be real competition for Binance because CZ invested in FTX (some say he sold his pat) so they are most likely connected in some way.

[bbc.reporter]

That is ridiculous, how can Binance worths more than the whole European banks? Not even comparing it with one or two banks. Binance is the largest crypto exchange but as people are getting to knowing about cryptocurrencies, there are new exchanges that are developing. No KYC is one of the reasons Binance growth was more than those of Huobi Global and some other exchange, not that Binance offer better services, but now Binance mandate KYC. Cryptocurrencies are getting regulated and there are a lot of competition, people should not expect Binance to grow more than usual.

Agreed that it might be ridiculous. I had a similar head shaking reaction, however, why would Su Zhu larp about CZ or Binance? Also, I am quite certain he knows more about the people behind the cryptospace than people like us who are ordinary forum cave trolls hehehehe. In any case, might Su Zhu also be implying about something else like illegal or hidden weath? I reckon CZ begun buying bitcoin on 2012.

[Darker45]

And what's the point of this tweet? Not only is it most probably not true, it also seems irrelevant and pointless. If Su Zhu is saying that Binance is actually bigger than all the European banks combined, well, the numbers don't agree. If Su Zhu is saying that Binance is actually worth much more than its declaration, I'm more than sure these European banks are, too. And if Su Zhu is simply promoting Binance, well, it might not be effective at all. Binance is on the road going down.

[Husires]

How is net wealth measured? If we are talking about the value of Bitcoin and altcoins, it is inaccurate, as most of them are for speculation.
therefore it will lose its value by 20% if the platform thinks of selling it at once, and the value of Bitcoin is volatile and you will not be able to take a correct average.

Let's assume that Binance' net reserves are half the market capitalization of all cryptocurrencies which is an optimistic model which represents:

• The market cap of all cryptocurrencies: 1,778,320,412,710 and half of it is $800 billion. Source: https://coinmarketcap.com/
• The closest we can imagine is the total assets of the European Central Bank 569.3 billion euros. Source: (ECB)
• Comparing the value of assets thus gives wrong results.
• Binance is the largest market for most altcoins and therefore their prices are not real.

[bbc.reporter]

And what's the point of this tweet? Not only is it most probably not true, it also seems irrelevant and pointless. If Su Zhu is saying that Binance is actually bigger than all the European banks combined, well, the numbers don't agree. If Su Zhu is saying that Binance is actually worth much more than its declaration, I'm more than sure these European banks are, too. And if Su Zhu is simply promoting Binance, well, it might not be effective at all. Binance is on the road going down.

I am not certain what Su Zhu's point is, however, my point in sharing this tweet is that I am beginning to admit that I might be wrong in telling everyone that FTX is the Binance killer hehehe.

In any case, Su Zhu might be implying that if there was a financial company that will be worth more than the European banks, it might be Binance and it appears he is quite certain of this. It might only be a larp but why would he larp this unless he is a direct investor of Binance.

@Husires. Agreed. We do not know how Su Zhu measured networth.

[bittraffic]

Binance has BSC so it will stand a chance of getting richer and richer surpassing banks in Europe. And it's pretty sure that Binance also holds a ton of BTC probably more than what Microstrategy got by DCAing. Binance had been around before the 2017 bullrun which everyone gained so much.

Even today I don't have FTX account though. I'm up to believe many of us are not in FTX as well, I'm not open to sending more KYC documents to another exchange.

[jrrsparkles]

It might be close according to 3 Arrows Capital cofounder, Su Zhu who is also a known to have become one of the largest investors in the cryptospace. I have speculated that FTX would be the Binance killer, however, it appears that Binance's competitors might not have enough funding to do this if Su Zhu's speculation on Binance's networth is true.


Do not attack this man

Is Binance worth more than the sum of all European banks now? Might be close

Source https://mobile.twitter.com/zhusu/status/1503228704247644165?s=12

If I am not wrong his networth is around 96 Billion while FTX founder's networth is around 30 Billion so ues that's a lot of gap between them. Well the surprising note is both of them achieved in a short time frame from the scrap so their goal js to grow further and not just compete with the banks alone.

[LoyceV]

Binance has BSC so it will stand a chance of getting richer and richer

I hate BSC with a passion. Binance tricks customers into withdrawing their own made-up tokens instead of Bitcoin.

If I am not wrong his networth is around 96 Billion while FTX founder's networth is around 30 Billion

If those numbers are correct, I'd say this isn't right. It can't be good for crypto if 2 guys collected a few percent of the total market cap just from creating exchanges. Someone has to pay those billions, and it's not helping Bitcoin.
Those huge profits mean there's not enough competition. Binance's $30 withdrawal fees are a clear sign of that. The fact that they scam users after they themselves made a mistake shows Binance doesn't care about anyone else.

[hugeblack]

CZ will be stupid If he makes such a statement because Binance has become large enough for the regulatory authorities to audit and find some violations that require fines or the imposition of an audit.

In other words, the more Binance be under the spotlight, the more likely they will pay more taxes and compensation.

As for the statement, it is an attempt to prove the liquidity and that the project that is listed on that platform will be sufficient, and perhaps the increased competition makes them say this, especially since all platforms have become imitating Binance in everything, and therefore unless there is more innovation, we may witness the rise of a new star.

In general, we need more good platforms even if they require identity verification.

[jrrsparkles]

If those numbers are correct, I'd say this isn't right. It can't be good for crypto if 2 guys collected a few percent of the total market cap just from creating exchanges. Someone has to pay those billions, and it's not helping Bitcoin.
Those huge profits mean there's not enough competition. Binance's $30 withdrawal fees are a clear sign of that. The fact that they scam users after they themselves made a mistake shows Binance doesn't care about anyone else.

Lack of competition is one kf the reason why Binance grew up so fast but there is no barrier for anyone to create their own exchange right so definitely people didn't get the idea of creating cryptocurrency exchanges but many of them trying to trade cryptos, hope some guys will recognise and share the profits from those 2 guys.

[bittraffic]

There were competitors even before binance, its just that the exchange was easier to use with yuge volume and Legendary users shills for Binance back in 2016 that users leave polo and bittrex for it.

Binance has BSC so it will stand a chance of getting richer and richer

I hate BSC with a passion. Binance tricks customers into withdrawing their own made-up tokens instead of Bitcoin.

Exactly. Its what makes this Binance sucessful with BNB. Tricking users is the trick but I think this isnalso to model of some other exchanges today. Having their own token and platform to have made up tokens.

[bbc.reporter]

There were competitors even before binance, its just that the exchange was easier to use with yuge volume and Legendary users shills for Binance back in 2016 that users leave polo and bittrex for it.

Binance has BSC so it will stand a chance of getting richer and richer

I hate BSC with a passion. Binance tricks customers into withdrawing their own made-up tokens instead of Bitcoin.

Exactly. Its what makes this Binance sucessful with BNB. Tricking users is the trick but I think this isnalso to model of some other exchanges today. Having their own token and platform to have made up tokens.

I reckon if Binance tricked their users to withdraw in their own blockchain's token and it created a new model for other exchanges to copy and follow, was it not the most natural move for exchanges and it was only Binance did it first?

I speculate that after Solana's failures, SBF might order the development of a fork of Solana as FTX's own blockchain and use FTT as the token.

I have also speculated that banks and other traditional institutions will buy exchanges, similar to how Circle bought Poloniex. However, I might be mistaken. It appears exchanges in the cryptospace can also grow bigger to buy the banks hehehe.



Binance, the world's largest cryptocurrency exchange by trading volume, is looking into acquiring banks and payment processors in Brazil, Binance CEO Changpeng Zhao said Wednesday.

Source https://www.coindesk.com/business/2022/03/16/binance-ceo-says-firm-is-looking-into-buying-banks-and-payment-processors-in-brazil/

[Darker45]

If those numbers are correct, I'd say this isn't right. It can't be good for crypto if 2 guys collected a few percent of the total market cap just from creating exchanges. Someone has to pay those billions, and it's not helping Bitcoin.
Those huge profits mean there's not enough competition. Binance's $30 withdrawal fees are a clear sign of that. The fact that they scam users after they themselves made a mistake shows Binance doesn't care about anyone else.

Lack of competition is one kf the reason why Binance grew up so fast but there is no barrier for anyone to create their own exchange right so definitely people didn't get the idea of creating cryptocurrency exchanges but many of them trying to trade cryptos, hope some guys will recognise and share the profits from those 2 guys.

We actually have so many exchanges, hundreds of them. As a matter of fact, many of them have already died. I can still remember there was a time in the not so distant past when exchanges were sprouting everywhere like mushrooms. But still there is the apparent lack of competition. Aside from many other exchanges being shady and of low quality, perhaps the marketing prowess of CZ had a lot to do with the success of Binance. Of course, I don't discount Binance's better products and features, but Binance was born with hype.

[jrrsparkles]

If those numbers are correct, I'd say this isn't right. It can't be good for crypto if 2 guys collected a few percent of the total market cap just from creating exchanges. Someone has to pay those billions, and it's not helping Bitcoin.
Those huge profits mean there's not enough competition. Binance's $30 withdrawal fees are a clear sign of that. The fact that they scam users after they themselves made a mistake shows Binance doesn't care about anyone else.

Lack of competition is one kf the reason why Binance grew up so fast but there is no barrier for anyone to create their own exchange right so definitely people didn't get the idea of creating cryptocurrency exchanges but many of them trying to trade cryptos, hope some guys will recognise and share the profits from those 2 guys.

We actually have so many exchanges, hundreds of them. As a matter of fact, many of them have already died. I can still remember there was a time in the not so distant past when exchanges were sprouting everywhere like mushrooms. But still there is the apparent lack of competition. Aside from many other exchanges being shady and of low quality, perhaps the marketing prowess of CZ had a lot to do with the success of Binance. Of course, I don't discount Binance's better products and features, but Binance was born with hype.

Even now there are lots if exchanges but they aren't user-friendly that is the main reason why they are struggling to get the traffic and many exchanges were/are trying to fake their trading volumes but when people starts trading there, waiting too long and don't get the actual price they expected so they just go with the exchanges which are providing good and fast trading experience with low fee structure.

[NeuroticFish]

The assets they hold aren't the same as the bank's value. I'm actually surprised by how low the value of large Dutch banks is: ING is worth 37 billion, ABN AMRO is worth only 10 billion. That means Coinbase is worth slightly more than ING.

As for Binance: I wouldn't be surprised if they're mostly forgotten 10 years from now. New Fintech competitors can emerge much faster than competitors for traditional banks.

I have speculated that FTX would be the Binance killer,

Interesting and useful clarification about net worth and assets!

The history has shown that top exchanges do go down after a while. And although Binance kinda did everything right (much better than others in the past), FTX (or another future platform) can easily become "Binance killer". It's not only OP who has speculated or even put their money on FTX rise, especially as Binance may easily do missteps while turning towards regulations. But times do change and every new top exchange seem to last (on top) a bit longer. And as long as "funds are SAFU" indeed, many won't see a good reason to switch... not yet...

[LoyceV]

I reckon if Binance tricked their users to withdraw in their own blockchain's token and it created a new model for other exchanges to copy and follow, was it not the most natural move for exchanges and it was only Binance did it first?

In a way, banks started it! Instead of withdrawing dollar bills, people accept a number in the bank's own computer system. Even further back you could argue goldsmits started it: instead of withdrawing gold, they gave people paper money.

One of the very sneaky things is this:

Lost coins only make everyone else's coins worth slightly more.  Think of it as a donation to everyone.

But lost made-up tokens on Binance's own centralized chain are a donation to Binance! They keep the Bitcoin, you get nothing.
That's a lot more difficult to do for regulated banks than it is for Binance.

We actually have so many exchanges, hundreds of them. ~ Aside from many other exchanges being shady and of low quality

You've already mentioned the problem: I don't trust most exchanges. I don't trust banks either, but because of regulation I know they're not very likely to steal my money. With exchanges, it's still the Wild West out there. They can even use KYC as an argument to freeze your funds. With banks, at least I know who I'm dealing with.