What happens if binance and tether goes down

[XEN_Protocol]

Is it really over for crypto if Binance exchange or Tether go bankrupt like FTX? Can crypto survive without the centralise organizations and projects?

[Charles-Tim]

Let me be more specific and refer to only bitcoin. Bitcoin was existing before Binance. Can water still exist if no human living on earth again?

Tether is just a stable coin and nothing more. There are other stable coins like USDC and the better ones like DAI.

Can crypto survive without the centralise organizations and projects?

The first bitcoin trade which was now recognized as the Pizza day was not carried out on an exchange, it was direct p2p.

[Marvell1]

Is it really over for crypto if Binance exchange or Tether go bankrupt like FTX? Can crypto survive without the centralise organizations and projects?

Bitcoin created first or Binance exchange created first? and if I remember correctly, binance has only been around since 2017 and before that we also had many other centralized exchanges. All of them have a lifespan and are always replaced by other exchanges from time to time. So there is no reason that when binance dies the cryptocurrency will also disappear, but if bitcoin dies there is a high probability that the market and exchanges will be gone.

Binance or tether or any other company or project is just a part of this market, so without them there would be another product to replace them.

By the way, this was the first bitcoin exchange, at that time with 1$ we could buy thousands of bitcoins .

[mk4]

If they go down — like hacked/insolvent, then it's a safe assumption that we should expect a heavily extended bear market due to how big these entities are. Does it mean that bitcoin/crypto will die? Definitely not, just that people will be generally uninterested for a while.

[Crypt0Gore]

There will be a massive panic and many will lose their money, that's it.

After a while things will go back to the way they used to be, it's going to take time and people will be given more reasons to trust DeFI more.

Two days ago Uniswap took over coinbase rank and that's a very good accomplishment, sooner or later people will have to trust Decentralised exchanges more than those centralised exchanges and even centralized blockchain.

[electronicash]

bitcoin was just fine before binance but if tether go bankrupt, the market may struggle to have a bullrun since mostly may just be using other stablecoin that has less supply. i'm not going to even think binance will collapse. they are not doing what Bankman was doing.

[Mpamaegbu]

Is it really over for crypto if Binance exchange or Tether go bankrupt like FTX?

Though I'm optimistic that life will go on, it will be really very difficult to go on without Binance in the crypto space. My emphasis is on "really very" there. Just take a look at how the FTX saga is dragging other stuff into issues and bankruptcy with it. You can imagine how many other exchanges that rely on Binance to draw their sources from it and what will happen if Binance goes down with what's happening with little FTX compared to Binance.

Can crypto survive without the centralise organizations and projects?

It will drag the development backwards. We can recollect how difficult it was a few years ago buying cryptos on the internet. More so, newcomers to this industry find it easily accessible to be on Cex than Dex because of the numerous cryptos therein.

[tranthidung]

Bitcoin created first or Binance exchange created first? and if I remember correctly, binance has only been around since 2017 and before that we also had many other centralized exchanges. All of them have a lifespan and are always replaced by other exchanges from time to time. So there is no reason that when binance dies the cryptocurrency will also disappear, but if bitcoin dies there is a high probability that the market and exchanges will be gone.

Binance or tether or any other company or project is just a part of this market, so without them there would be another product to replace them.

Exchanges come and go but we can not deny that if Binance collapse like FTX, its impact should be bigger because they are a bigger exchange than FTX. Their chain, Binance Smart Chain is bigger than Solana too.

Unless their report - Our Commitment To Transparency - is cooked, their finance management is good and healthy. According to this, they did not use customer money inappropriately and did not take too high risk like FTX.

Tether is a biggest stable coin and its impact (if it collapse) would be bigger than UST impact in May 2020.

Whatever happen with Binance and USDT in future, I am sure governments will launch more laws and execute more strictly regulations on cryptocurrency and blockchain. For future, it is good, not bad.

[NeuroticFish]

Is it really over for crypto if Binance exchange or Tether go bankrupt like FTX? Can crypto survive without the centralise organizations and projects?

If (or when) Binance will go down, another exchange (or, hopefully a DEX this time, although I doubt is) will rise and take the lead. It has happened before. Many even thought that FTX will replace Binance, heh.
Plus, "crypto" will probably get a well deserved blow, since most projects' reason to exist is just to suck up money. Although many will just switch to Bitcoin intead of Tether, for example.

Actually, without Tether the system (the prices!) could become clearer and more honest, since Tether is, let's be honest, overly inflated.

I don't know why people keep relying on centralized stuff no matter how hugely disappointing that is...

[Fullcoinese]

bitcoin was just fine before binance but if tether go bankrupt, the market may struggle to have a bullrun since mostly may just be using other stablecoin that has less supply. i'm not going to even think binance will collapse. they are not doing what Bankman was doing.

yeah, it's hard to think a market the size of Binance could collapse. but seeing what happened to FTX, one-day Binance may also be in big trouble.
but if that happens, maybe other markets will also emerge which are already big enough to compete with Binance.
the market will certainly get a big influence. especially about BNB assets which will also fall. maybe like the incident that happened to FTX. or even more terrible.

[cheezcarls]

Is it really over for crypto if Binance exchange or Tether go bankrupt like FTX? Can crypto survive without the centralise organizations and projects?

Even if they go down, that doesn’t mean crypto is finally dead (but will remain bearish for a long while if that happens).

Binance isn’t the only exchange in the world.

Tether USD isn’t the only stablecoin in the world.

Bitcoin was born way before Binance and Tether USD existed in the space.

So crypto isn’t going anywhere.

[Woodie]

Is it really over for crypto if Binance exchange or Tether go bankrupt like FTX?

Over for crypto... no ways that's far from it! Binance isnt the first exchange to be in the big boys league and if they ever get into that entanglement its most likely another exchange will take its place and crypto living moves on...and the crypto way of doing business will get more smarter and better.

Can crypto survive without the centralise organizations and projects?

Crypto was doing fine just before the centralized exchanges came and it will continue to live on if a Cex like Binance goes down,only problem with this is many users will be affected as they might be holding coins on the exchange which means markets will bleed for some time.

Can we do without them? Let's just say we have become comfortable with a Cex and at this point cannot do without them.

[Rikafip]

Is it really over for crypto if Binance exchange or Tether go bankrupt like FTX?

It would be a general shitshow, no questions about it, given the Binance market position and amount of people that are using Tether  for either trading or hodling (creazy thing to do, but people do it nevertheless). But no, it wouldn't be over for crypto and certainly not for Bitcoin. It would be the end for thousands of useless shitcoins though and probably more exchanges/platforms that are in some way connected to Binance.

Can crypto survive without the centralise organizations and projects

Sure it can, but centralize exchanges would continue to exist, as before.

[noorman0]

Binance was the trigger, so that's pretty much the final frontier for people trusting any centralized service that's ever been set up throughout crypto history. At least bitcoin will return to being the true cryptocurrency it was originally (all transactions will be happen on the blockchain) although it will lose most of the users. The good news is that altcoins will actually be worth zero.

[CryptopreneurBrainboss]

Is it really over for crypto if Binance exchange or Tether go bankrupt like FTX? Can crypto survive without the centralise organizations and projects?

Just as others have commented, no it isn't over for the cryptocurency industry if those scenario you mentioned above does occur instead it'll push for more decentralization of the industry and increase awareness for the use of more of dApp instead of centralized ones. Just to take you back memory lane, back when Mt. Gox exchange was still in function and arguably more powerful than Binance, it got hacked and that didn't end the cryptocurrency movement. For more clarity read;.

The first major crypto hack occurred in 2011 when the crypto exchange Mt. Gox lost 25,000 bitcoins worth approximately $400,000.  At that time, the crypto exchange was handling nearly 70% of all bitcoin transactions. The attack didn't stop and Mt. Gox was attacked again in 2014. It lost almost 650,000 of its customers' bitcoins, and around 100,000 of its own. At the time that was 7% of all bitcoins, and worth around $473 million. Initial reasons for the coins' disappearance were unclear, but later evidence showed that the coins were stolen from the company's hot wallet.
Source: https://www.investopedia.com/news/largest-cryptocurrency-hacks-so-far-year/

As you can read, back then Mt. Gox was incharge of 70% of all Bitcoin transaction yet that hack didn't end the Bitcoin movement. Today although binance is the most dominant exchange but we have other options out there that even as dominate as Binance is, institutional investors still has other exchange they used for their purchases.

[franky1]

CEX exchanges come and go

when i started getting into bitcoin,  btc-e was my favourite. yea it was simple and unregulated and risky, and yep.. its not around now
nor is mtgox

heck even bitstamp had some popularity presence early on.. but now no one really talks about it.

then there were like XX others exchanges that came and went
cryptsy, cryptorush, mintpal..... plus alot more

with the FTX contagion affecting the DCG by messing with genesis and circle. and where coinbase/greyscale are not providing much in the way of showing their cold wallet storage.. i would be looking more towards the exchanges listed on the DCG portfolio for possible more contagion hits.

[BlackHatCoiner]

If Binance and Tether go bankrupt, I expect a massive (temporary) crush in Bitcoin's price, right as well as the elimination of 99% of altcoins. Most altcoins exist due to funding from large entities such as Binance, and I presume most altcoin holders keep them on their Binance account, because it's either too difficult for them to find an open-source, non-custodial wallet, or it might ironically not exist.

I think they're planning to provide proof-of-reserve due to the recent incident with FTX.

[Aanuoluwatofunmi]

Is it really over for crypto if Binance exchange or Tether go bankrupt like FTX? Can crypto survive without the centralise organizations and projects?

Bitcoin will survive and keep going, other altcurrencies will suffer casualties and closedown, exchanges will also follow suite and close down, and all investors with them will have the same experience others have with FTX and the likes.

[PrivacyG]

Depends on what the status of the market is at the said time.  There have been a few large Exchange hacks and drops that had an insignificant impact on the markets.  I think if the markets are powerful enough, a hack or a bankruptcy can be forgotten so much easier than during uncertain and bearish times.

Anyway.  No matter what short term impact it might have, long term Bitcoin is unaffected by this.  Even if it is an event that shakes the whole market stronger than ever before, after all Bitcoin is here to provide a DEcentralized ecosystem so why would it suffer.  It is not Bitcoin's fault but its users for not using Bitcoin the traditional way and choosing convenience over anything.

-
Regards,
PrivacyG

[Magic-Money]

These your thinking is a very big expensive joke, as FTX and Luna clash, which imagination of tether to clash, the stoke market will be affected heavily, because of the trading pairs, but investors and traders will be involved fully, which is not possible for tether to go under bankrupt, if it happen that means the game is over.