In recent times, especially after the fall of FTX, there has been a lot of scare about exchangers. FTX is one of the remarkable exchangers. When such institutions go bankrupt, it is natural for investors to lose confidence in almost all exchanges, including Binance. Already we are seeing some big investors withdrawing their assets from the exchange. If this situation does not improve, the number of investors will continue to decrease and the exchanges will be in danger.
Investors should never leave their coins on exchanges, it should be on their noncustodial wallet instead, preferably cold wallet or hardware wallet which are safer.
That is how it do starts, that people will be withdrawing their money from an exchange that can lead to collapse of the exchange, but the amount withdrawn on Binance is still not significant enough and Binance daily trading volume is still very high which is over 39 billion in 24 hours now, but I saw it dropped from over 50 billion last week. I do not still think this could bring down Binance because nothing yet that is enough to bring Binance down to be point of collapse and insolvency.
There are some executives at several major crypto firms do not think Binance is headed for bankruptcy. They believe that Binance is still very strong. They say Binance holds large stores of bitcoins and liquid assets. As a result, it would be wrong to call it on the verge of bankruptcy. Moreover, Binance owner Changpeng Zhao himself said that Binance has the power to overcome any crypto winter. Consequently it goes without saying that Binance is still a strong exchange.
Binance is centralized and just a business, it is better to avoid what could happen to your coins if it collapse. I am not saying Binance would collapse though, but we should always leave all these sweet talks about centralized platforms that could let our coins to be lost. Only trading funds which is low should be left on an exchange.
