Would Bitcoin Be Badly Hurt if Binance Goes Down?

[imamusma]

-snip
 But apart from all that, right now I don't think that Binance will really fall because Binance has its own way of solving every problem and developing their exchange to be better for the future.

I also don't believe that Binance will collapse just because of the SEC's baseless accusations because Binance is not cheating and is not as bad as FTX did. But in the distant future, it is difficult to say with certainty that they will continue to exist and develop, anything is possible. I'm still using Binance, but I can't rule out the possibility that it will crash in the next bear seasons, but not this time.

Binance can be trusted because of their reputation, but we can't guarantee they will stay the same in the long term as things can change over time. I expect everyone to treat Binance as just an exchange, so it's not a safe depository for their assets in the long term.

If Binance completely does down, it will affect Bitcoin price but that's all it will do. I don't believe it will go below $16k though.

You are underestimating the influence of Binance, I even believe that $5k will be easy if Binance really crashes, and it will take us at least 3 to 5 years to recover everything. The dominance of Binance is unprecedented, no exchange has done this to date, not even Mt.gox.

You're right, and it's even harder to avoid a big crash if Binance goes down forever. If in the future Binance crashes, then an adverse impact on the bitcoin price could occur spontaneously. People will turn this case into a lousy FUD and will continue to drive the bitcoin sell numbers even lower. If Luna, FTX and some other cases can affect the volatility of the bitcoin price, then of course it is true that bitcoin will also have a bad impact when Binance goes down especially about the price.

[1715366498]

1715366498

[Yatsan]

I'd say yes due to FUD. Binance is simply the largest exchanger and its downfall would really result huge market price downfall due to large investors who would sell their holdings to avoid their assets to be eaten by the exchanger itself. Downside of centralized exchangers wherein investors are not having full control of their holdings. Even if it is not a total downfall, things would still be the same 'coz what happened with FTX would be more likely associated with this possible instance. And if we would go back with the mentioned problem, the market prices fell during that time, therefore it left an impression causing people to panic as well.

-snip
 But apart from all that, right now I don't think that Binance will really fall because Binance has its own way of solving every problem and developing their exchange to be better for the future.

I also don't believe that Binance will collapse just because of the SEC's baseless accusations because Binance is not cheating and is not as bad as FTX did. But in the distant future, it is difficult to say with certainty that they will continue to exist and develop, anything is possible. I'm still using Binance, but I can't rule out the possibility that it will crash in the next bear seasons, but not this time.

Binance can be trusted because of their reputation, but we can't guarantee they will stay the same in the long term as things can change over time. I expect everyone to treat Binance as just an exchange, so it's not a safe depository for their assets in the long term.

If Binance completely does down, it will affect Bitcoin price but that's all it will do. I don't believe it will go below $16k though.

You are underestimating the influence of Binance, I even believe that $5k will be easy if Binance really crashes, and it will take us at least 3 to 5 years to recover everything. The dominance of Binance is unprecedented, no exchange has done this to date, not even Mt.gox.

You're right, and it's even harder to avoid a big crash if Binance goes down forever. If in the future Binance crashes, then an adverse impact on the bitcoin price could occur spontaneously. People will turn this case into a lousy FUD and will continue to drive the bitcoin sell numbers even lower. If Luna, FTX and some other cases can affect the volatility of the bitcoin price, then of course it is true that bitcoin will also have a bad impact when Binance goes down especially about the price.

Fortunately, Binance managed to prove itself just recently about the lawsuit. Something expected for the largest exchanger and for sure they won't allow its downfall to just happen in an instant and that easily, they are expected to fight it out. They have the money to do so, in the first place.

[imamusma]

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Fortunately, Binance managed to prove itself just recently about the lawsuit. Something expected for the largest exchanger and for sure they won't allow its downfall to just happen in an instant and that easily, they are expected to fight it out. They have the money to do so, in the first place.

If Binance does not feel guilty and has not violated anything, then they have the right to defend themselves even if they have to hire a lawyer during the trial. Their success against the lawsuit has had a positive impact on the market where as of now the market has also shown recovery after the price dropped below $25k.

The fact is true that Binance or any other centralized exchange will be able to have both positive and negative impacts on the market. But I believe, the impact will not last forever because bitcoin has nothing to do with a centralized exchange. Exchanges are a facility for traders and investors to buy and trade assets, but exchanges are not the only way to trade bitcoins.

[Casdinyard]

Bitcoin's gonna receive a gut punch for a while and may even lose value just as what happened when the Terra Founder was found guilty of corruption, mind you that cryptocurrency was not even related one bit to bitcoin and the whole industry still suffered the consequences. So it's quite possible for bitcoin to floor even if Binance goes down in the US. However, there's also a great possibility for bitcoin to bounce back soon for some reason just as it did in 2020. There's no good reason for bitcoin to pump in value back then since it was during the height of the COVID0-19 pandemic and people are frantic left and right trying to find ways to make ends meet and stay alive and yet it did.

Plus all the evidences leads towards bitcoin losing a significant amount of its valuation if and only if Binance is to go down, it has happened before with FTX and other Exchanges, the repercussions will be even more severe if binance were to go down.

[erep]

If Binance does not feel guilty and has not violated anything, then they have the right to defend themselves even if they have to hire a lawyer during the trial. Their success against the lawsuit has had a positive impact on the market where as of now the market has also shown recovery after the price dropped below $25k.

Binance has the right to defend itself during the trial and will prove that they did not commit the alleged offenses. Based on recent observations of the case Binance.us has stepped forward in the winning position and the judge is also likely to dismiss the SEC lawsuit if it cannot be proven, if binance wins the case it will boost investors' confidence in Binance and cause the market to recover quickly. However, the legal process is still ongoing and no final decision has been made, so we really hope that the best decision goes to Binance.

The fact is true that Binance or any other centralized exchange will be able to have both positive and negative impacts on the market. But I believe, the impact will not last forever because bitcoin has nothing to do with a centralized exchange. Exchanges are a facility for traders and investors to buy and trade assets, but exchanges are not the only way to trade bitcoins.

Binance can have a significant impact on the bitcoin price because the Binance exchange has high liquidity compared to other exchanges, even if the case only impacts Binance.US but the impact ratio is high for the bitcoin market. The fact that the price of bitcoin is based on supply and demand although it can be traded without a centralized exchange as there are options for decentralized exchanges (DEXs). I don't want to speculate further on this matter and I am very confident that Binance will handle this case well and the market will return to normal due to the important information that there was no freezing of customer assets from previous lawsuits.

[MarjorieZimmermanGinger]

Binance can be trusted because of their reputation, but we can't guarantee they will stay the same in the long term as things can change over time. I expect everyone to treat Binance as just an exchange, so it's not a safe depository for their assets in the long term.

Building a reputation on the exchange is hard and I don't think CZ is going to let binance just sink, but we also don't know what the future holds for binance, because as you said things change over time. The exchange should only be used for trading and not a place to store assets, but sometimes people don't consider security which in the end they themselves take the risk when the exchange goes bankrupt or frozen.

You're right, and it's even harder to avoid a big crash if Binance goes down forever. If in the future Binance crashes, then an adverse impact on the bitcoin price could occur spontaneously. People will turn this case into a lousy FUD and will continue to drive the bitcoin sell numbers even lower. If Luna, FTX and some other cases can affect the volatility of the bitcoin price, then of course it is true that bitcoin will also have a bad impact when Binance goes down especially about the price.

There is always the possibility of an exchange running into trouble and in the past we have seen how the case at FTX and bitcoin or crypto market conditions in general corrected badly. It's no wonder why in these conditions bitcoin experienced a decline caused by panic and traffic that occurred on the exchange, so logically this only develops in the short term and will return to normal when the market is on its way to recovery.

Today all of us have seen bitcoin show recovery and I think this kind of traffic we have seen a lot in the market. So we know that something that happens on the exchange will definitely have an impact on bitcoin or other crypto, not only binance and maybe when other exchanges experience problems there will also be a market chaos process that results in bitcoin being corrected.

[Mr.suevie]

I actually think that if Binance really does fall for whatever they're going through, then there's going to be another exchange that makes it big in the crypto space with a lot more users. Because users who used to use Binance will definitely move to use other exchanges that are no less good than Binance even though the effects caused by this are not wanted by many people, which might result in a decline in the price of cryptocurrencies.

This is true.  There will always be other exchanges. But then it might lead to more troubles because people will now start using various exchanges and they might not know which is trustworthy and which is not. For an exchange to be as big as Binance, it will take time. It takes time to build trust, especially the kind of trust that Binance has built with its customers.

If Binance completely does down, it will affect Bitcoin price but that's all it will do. I don't believe it will go below $16k though. 

Believed me or not, I actually think most crypto users are already getting prepared for the worste to happen because of the trend of previous event that has affected the market. Binance is currently the number one crypto exchange in the whole and there service actually closing will affect the crypto market badly but one thing which most certain is the fact that the market and humans will adapt to this change as its constant.

[Japinat]

I actually think that if Binance really does fall for whatever they're going through, then there's going to be another exchange that makes it big in the crypto space with a lot more users. Because users who used to use Binance will definitely move to use other exchanges that are no less good than Binance even though the effects caused by this are not wanted by many people, which might result in a decline in the price of cryptocurrencies.

This is true.  There will always be other exchanges. But then it might lead to more troubles because people will now start using various exchanges and they might not know which is trustworthy and which is not. For an exchange to be as big as Binance, it will take time. It takes time to build trust, especially the kind of trust that Binance has built with its customers.

If Binance completely does down, it will affect Bitcoin price but that's all it will do. I don't believe it will go below $16k though. 

That is very much expected if any big exchanges will have some troubles and worse shut down, especially if it's Binance who have already been trusted by the public. But all of this will be temporary and the prices may go down for quite some time while investors are still figuring out a way to find another trustworthy exchange that can replace the Binance, after that, there will be a correction that will restore the order and so the prices will rise again after the doubts.

[Franctoshi]

No one can predict how bad the situation or the snowball effect may be on the industry, However just as Bitcoin and the entire crypto market survived the FTX contagion, the Same hand will Bitcoin survive should Binance go out of business, even though they are the biggest exchange out there. Altcoins/Shitcoins will take the biggest hit of it and many altcoins will not survive this event.

[The Cryptovator]

Consider this: If Binance were to face collapse, it could potentially lead to the collapse of the entire crypto market. Binance holds significant control over a substantial portion of the crypto industry, essentially dominating the exchange landscape. Just like the repercussions that arise when a king passes away, the cryptocurrency market would experience a considerable impact if Binance were forced to cease operations or be seized by the US.

Nonetheless, even in such a scenario, I hold the belief that Binance would continue to operate and support various cryptocurrencies, including Bitcoin. Even if the United States were to terminate its collaboration with Binance, it is unlikely that the platform would halt its services worldwide. Binance has established a global presence and would likely persevere, providing continued assistance to the cryptocurrency ecosystem.

[Asuspawer09]

I really am no fan of Binance because I found their KYC annoying. What is not in doubt is that CZ is supposedly one of the most credible faces of crypto. How much harm do you think a Binance implosion would cause Bitcoin? Is the US a big threat to the coin market?

https://www.cryptoinfowatch.com/a-former-sec-official-said-the-binance-ceo-and-others-may-face-criminal-charges-soon/

For sure if Binance goes down it would make a big effect on Bitcoin, Binance is probably the biggest cryptocurrency exchange in the market, and similar to what happened to FTX it is surely going to have a huge impact on the market price of Bitcoin, it would create a lot of FUD in the market. Imagine how risky the crypto is to think that the biggest cryptocurrency exchange goes down compared to some small investors. However, I don't think it's going to take Bitcoin down when that happened.

The market is surely going to be affected but it doesnt mean that Bitcoin is going to die, I mean the drop can be a good thing because it is a good opportunity to invest, personally, I would like Bitcoin to have a huge drop because that is the opportunity to create more profit in the future. Where all know the risk of cryptocurrency and all of this FUD doesnt matter anymore.

[Natalim]

I really am no fan of Binance because I found their KYC annoying. What is not in doubt is that CZ is supposedly one of the most credible faces of crypto. How much harm do you think a Binance implosion would cause Bitcoin? Is the US a big threat to the coin market?

https://www.cryptoinfowatch.com/a-former-sec-official-said-the-binance-ceo-and-others-may-face-criminal-charges-soon/

And the impact is likely would make doubtful individuals get panic. The price of Bitcoins will get affected and dumped but not going to the point that it turns back low like in the first quarter of this year. CZ is a known person and has market influence, and he would do something to save his reputation and retain his business. That is why despite the issue against the SEC, I was still confident that it will be resolved. Besides, the SEC doesn't target Bitcoin but only Binance, so it did not necessarily have to worry.

[serjent05]

Consider this: If Binance were to face collapse, it could potentially lead to the collapse of the entire crypto market. Binance holds significant control over a substantial portion of the crypto industry, essentially dominating the exchange landscape. Just like the repercussions that arise when a king passes away, the cryptocurrency market would experience a considerable impact if Binance were forced to cease operations or be seized by the US.

I do not think that the collapse of Binance will lead to the collapse of the entire market.  I think that the entire crypto market will be shaken but it would be temporary only.  There are lots of exchanges available in the market so I think it will only take some time for the effect of Binance collapsing to the crypto market and eventually the cryptomarket will become stable again.

Nonetheless, even in such a scenario, I hold the belief that Binance would continue to operate and support various cryptocurrencies, including Bitcoin. Even if the United States were to terminate its collaboration with Binance, it is unlikely that the platform would halt its services worldwide. Binance has established a global presence and would likely persevere, providing continued assistance to the cryptocurrency ecosystem.

Unless the owner, CZ got caught and unable to pay for his discharge due to many cases file against him.  I also agree that Binance will continue its operation and just avoid the US jurisdiction.

[Texac]

I really am no fan of Binance because I found their KYC annoying. What is not in doubt is that CZ is supposedly one of the most credible faces of crypto. How much harm do you think a Binance implosion would cause Bitcoin? Is the US a big threat to the coin market?

https://www.cryptoinfowatch.com/a-former-sec-official-said-the-binance-ceo-and-others-may-face-criminal-charges-soon/

And the impact is likely would make doubtful individuals get panic. The price of Bitcoins will get affected and dumped but not going to the point that it turns back low like in the first quarter of this year. CZ is a known person and has market influence, and he would do something to save his reputation and retain his business. That is why despite the issue against the SEC, I was still confident that it will be resolved. Besides, the SEC doesn't target Bitcoin but only Binance, so it did not necessarily have to worry.

I also don't believe that Binance will collapse or shut down just because of the SEC's baseless slander.  people are obsessed with the collapse of FTX, but they don't try to compare the difference between Binance and FTX, they always assume that all exchanges are the same.  but if in the worst case Binance crashes, it will be very bad and catastrophic for the market because their reputation and role in the market is huge. As far as I know, binance's trading volume is equal to all other exchanges combined, which shows that their dominance in the market is huge.

[bayu7adi]

I am still studying the charts diligently, seeking to gain a deeper understanding of the potential outcomes and their connection to recent events.

I perceive this as a grand scheme orchestrated by the whales. The decline in Bitcoin's price is quite customary, and I had actually foreseen it happening prior to the halving. I hope the upcoming halving scenario won't deviate significantly from the previous one, allowing us to witness a new all-time high (ATH) by 2026 at the very least.

[justdimin]

Binance is the most trusted crypto exchange, and it's also a huge crypto business. Even the lawsuit has a mild negative impact on the market, so going down would probably be much worse. We've seen exchanges go down in the past, and that can temporarily cause significant damage.

If they don't scam, they will continue to exist. Because you mentioned about "exchanges go down in the past", I'd like to quote BitMEX exchange and their former CEO story.

• Federal Court Orders BitMEX to Pay $100 Million for Illegally Operating a Cryptocurrency Trading Platform and Anti-Money Laundering Violations
• Former BitMEX CEO Arthur Hayes Sentenced to 2 Years Probation

That exchange has continued to exist and operate until now and I believe Binance will not die. They are a serious business and a game changer in this industry. They are different than FTX as they are better and more careful with risk management. They are seriously do as best as they can to comply with current regulations.

100 million is nothing for Binance to be fair, and they are not illegally running an exchange neither, they are valid legal company that has a .us company that deals with all the legal parts and making 100 million per month at least, probably more.

So, the maximum fine they could throw at the binance corporation, they can pay it and still continue, they will fix whatever caused them to have that problem, and not do that again, but they will continue without a trouble. Think about how much money this company makes, they are making tens of billions of dollars per year, it is just not going to be possible to stop them at all, it's just not possible. They will figure out a way to throw money at other politicians, and I mean like 30-40 million per congressman and 100 million per senator and they would still be rich and could run the whole nation. They do have the money for firing Gary for sure, easily done.

[coolcoinz]

What is not in doubt is that CZ is supposedly one of the most credible faces of crypto.

You must be reading too much crypto mainstream articles. CZ iz by no means a prominent, or credible figure. Take his involvement in FTX drama as an example.
I don't like the SEC but CZ is not a clean guy. He's making a lot of money from listings and he lists all the shitcoins that pump when the news of them being lister comes out and then bleed to eventually be reduced into nothing and delisted.

How much harm do you think a Binance implosion would cause Bitcoin? Is the US a big threat to the coin market?

It depends what people holding bitcoin on Binance would do. If they'd dump it all the price would crash, but they could also move it out of the exchange without selling.
The honeybadger will still be there doing its thing. In 2020 the price crashed and in 2021 made a new high like it was nothing.

[leeboy]

Any big exchange have great impact for btc price. Any problem and btc will go dipper and dipper

[Tony116]

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Fortunately, Binance managed to prove itself just recently about the lawsuit. Something expected for the largest exchanger and for sure they won't allow its downfall to just happen in an instant and that easily, they are expected to fight it out. They have the money to do so, in the first place.

If Binance does not feel guilty and has not violated anything, then they have the right to defend themselves even if they have to hire a lawyer during the trial. Their success against the lawsuit has had a positive impact on the market where as of now the market has also shown recovery after the price dropped below $25k.

The fact is true that Binance or any other centralized exchange will be able to have both positive and negative impacts on the market. But I believe, the impact will not last forever because bitcoin has nothing to do with a centralized exchange. Exchanges are a facility for traders and investors to buy and trade assets, but exchanges are not the only way to trade bitcoins.

In the first place, I never worried about Binance because this problem was not too serious, and I think just needed money to be able to solve it easily. I really haven't been too worried these past few days.

Bitcoin has nothing to do with a centralized exchange, but they are linked by investors. We use exchanges and bitcoins, so once something goes wrong, it will directly affect investor sentiment, and we are the ones causing the bitcoin dumping, not the exchange's fault. So I don't believe that the impact of exchanges will diminish over time, as long as we still use centralized exchanges to trade bitcoin, their influence will remain.

[Ahli38]

Because the problem that Binance is facing is only for those in America. So it won't be a big problem. And fortunately now the issues have started to meet common ground because Binance and the SEC have made an agreement which has also been approved by the judge. And very coincidentally after this problem was solved then the world's big companies started to move (Blackrock & Fidelity) and are applying for spot Bitcoin ETFs in the US.