Does the unregulated CEX damage Bitcoin's reputation?

[goldphysicalbitcoin]

Investors on the X platform are furious! The crash on October 10th last year resulted in $28 billion in liquidations across the network. Binance's system malfunction is undeniably culpable, yet it has failed to provide a convincing investigation report, and the promised compensation is woefully inadequate.

Ironically, Changpeng Zhao (CZ) possesses a net worth of $92 billion, while countless users have lost everything. We cannot help but ask: Is Binance's unregulated, high-leverage casino model building the industry, or is it leeching off Bitcoin?
https://x.com/i/status/2016360586850771228

[Ambatman]

It's obviously leeching off Bitcoin.
They need Bitcoin hence even while CZ promotes Bnb he also does Bitcoin
Because they can't survive or exist without Bitcoin but Bitcoin can survive without binance.

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Does the unregulated CEX damage Bitcoin's reputation?

Whether regulated or unregulated
Bitcoin isn't supposed to be used via a centralized exchange.

[348Judah]

Centralized exchange as a whole are not best for the use of bitcoin because of the intention of having privacy secure, because there's no benefits that using a decentralized coins should be found under a custodial means making it more prone for attack and control under regulated authority, maybe we could see more to the reasons why we keep seeing peoples fund being confiscated, because they are controlled by the centralized exchange instead of the rightful owner,

[melinoe]

What platform doesn't leech when it wants and can?

[freedomgo]

Maybe Binance isn’t globally regulated, but it is regulated in many countries, so this kind of thing shouldn’t just be brushed off.

What happened, whether they call it a technical issue or a software glitch, still needs a proper investigation since this is clearly an internal control problem. They’re the biggest exchange, mistakes like this carry real weight, and of course people will panic when they see something off.

An investigation is necessary so we know if it was intentional or not, and even if it wasn’t, there should still be some form of accountability because the result is the same, people ended up losing money.

[ContentWriter]

~snip~

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Does the unregulated CEX damage Bitcoin's reputation?

Whether regulated or unregulated
Bitcoin isn't supposed to be used via a centralized exchange.

I'm curious. How is it supposed to be used? P2P? As a personal user of Bitcoin, how many times have you been able to buy what you needed in the real world via P2p? We all have to face the reality that fiat is king in our countries and that Bitcoin does not YET have the level of adoption that could make us circumvent fiat or even stablecoins. More so, the volatility of Bitcoin makes it difficult for anyone to depend solely on it despite how much we hype it. Imagine an asset that could lose 10% of its value in a few hours. You definitely need a sort of hedge to protect the investor. This is why we all cannot depend solely on p2p.

[Cointxz]

Ironically, Changpeng Zhao (CZ) possesses a net worth of $92 billion, while countless users have lost everything. We cannot help but ask: Is Binance's unregulated, high-leverage casino model building the industry, or is it leeching off Bitcoin?
https://x.com/i/status/2016360586850771228

Both, it’s leeching the industry and at the same time help the crypto industry by providing a reliable platform for trading.

Binance established as a solid crypto exchange in time that exchange suddenly bankrupt while trapping users funds. Binance insurance feature that secure users funds in event of system exploit is a good assurance for funds safety.

Overall, Binance is very helpful for crypto industry.

[Sanitough]

Binance established as a solid crypto exchange in time that exchange suddenly bankrupt while trapping users funds. Binance insurance feature that secure users funds in event of system exploit is a good assurance for funds safety.

Overall, Binance is very helpful for crypto industry.

You’re talking about a possible hack where they can just cover everything using SAFU funds, and they’ve done that before. Millions were lost back then, but users weren’t really affected since they had internal insurance to absorb it.

This situation is quite different though, because this wasn’t a hack, it was a glitch, and it directly caused selling pressure. People panicked, positions got affected, and a lot of users ended up losing money because of that reaction. For some, this might look like a normal issue, but Binance is a huge exchange moving billions in volume, so this kind of incident should really be reviewed by independent experts to see what actually happened and whether they benefited from it in any way.

[melinoe]

Ironically, Changpeng Zhao (CZ) possesses a net worth of $92 billion, while countless users have lost everything. We cannot help but ask: Is Binance's unregulated, high-leverage casino model building the industry, or is it leeching off Bitcoin?
https://x.com/i/status/2016360586850771228

Both, it’s leeching the industry and at the same time help the crypto industry by providing a reliable platform for trading.

Binance established as a solid crypto exchange in time that exchange suddenly bankrupt while trapping users funds. Binance insurance feature that secure users funds in event of system exploit is a good assurance for funds safety.

Overall, Binance is very helpful for crypto industry.

It just filled the gap when it was needed most and monopolized the place a bit.

We have lots of new CEXes as of now besides BN, big and small, yet I hear its name the most still.

[Alpha Marine]

Whether regulated or unregulated
Bitcoin isn't supposed to be used via a centralized exchange.

I don't mind using CEX, but I feel it should be used as a marketplace. It should be a place where you just go to sell your bitcoin for cash if you must. Decentralised P2P services are not very popular, so people use the P2P services of exchanges.
Where I have a problem is when people store their Bitcoins in a centralised exchange. It makes no sense to me. It is so much better to have your bitcoinin your own wallet and only send it to an exchange account when you want to sell.
Wallets like Cake Wallet have features that change your address after every transaction, so you can still maintain a level of anonymity

[Dunamisx]

Both the regulated and the unregulated exchanges are not needed for our use, we need more of privacy and the use of non custodial wallet, we can manage the use of decentralized exchanges for this purpose as well, many thought that the only means to buy bitcoin could only be by the use for exchange and therefore decided to also have their asset on in even after they had invested.

[Furball808]

These exchanges or anything related in the industry honestly exists because of bitcoin so they are leeching off bitcoin. Binance wouldn’t exist if not for bitcoin. BNB exists because the platform got popular among bitcoin users.

[goldphysicalbitcoin]

An investigation is necessary so we know if it was intentional or not, and even if it wasn’t, there should still be some form of accountability because the result is the same, people ended up losing money.

Despite Binance’s denial, the consensus remains that system failure triggered the liquidations. Their unregulated, glitch-prone nature is stigmatizing the entire crypto industry as a scam or casino. Strict regulation of centralized exchanges is now an absolute necessity.

[Zlantann]

Both, it’s leeching the industry and at the same time help the crypto industry by providing a reliable platform for trading.

Binance established as a solid crypto exchange in time that exchange suddenly bankrupt while trapping users funds. Binance insurance feature that secure users funds in event of system exploit is a good assurance for funds safety.

Overall, Binance is very helpful for crypto industry.

These centralised platforms have both a negative contribution to the Bitcoin industry. Some of them engage in sharp practices that dent the reputation of the crypto industry. And many people don't know that Bitcoin is different from these platforms. I remember the FTX saga that had a negative toll on Bitcoin. People usually generalise that the crypto industry is a scam when these platforms rug pull or defraud their customers.

Nevertheless I would not dispute that the exchanges and other crypto service providers have contributed to crypto awareness and adoption. Some people wouldnt have engaged in Bitcoin without the existence of these centralised platforms.  

[Cointxz]

Binance established as a solid crypto exchange in time that exchange suddenly bankrupt while trapping users funds. Binance insurance feature that secure users funds in event of system exploit is a good assurance for funds safety.

Overall, Binance is very helpful for crypto industry.

This situation is quite different though, because this wasn’t a hack, it was a glitch, and it directly caused selling pressure. People panicked, positions got affected, and a lot of users ended up losing money because of that reaction. For some, this might look like a normal issue, but Binance is a huge exchange moving billions in volume, so this kind of incident should really be reviewed by independent experts to see what actually happened and whether they benefited from it in any way.

What I said is the feature which Binance use to establish their reputation despite having a negativity on crypto exchange back then.

I’m not comparing this feature to the current issue raise by the OP. I only state one of the contribution given by Binance to make user trust them. This helps the crypto industry to achieve adoption since newbie have a reliable platform back then. Now, most of the CEX already follow the Binance standards.

[moneystery]

If we discuss whether it has an impact on Bitcoin's reputation, I don't think so because Bitcoin's reputation doesn't depend on them.. but it's just that when CEX faces problems, such as what happened in the FTX case some time ago, it causes the Bitcoin market to drop badly and causes a decrease in the confidence of some investors, especially from retail investors who don't fully understand the difference between Bitcoin and CEX. So indirectly, the problems that occur at CEX can disrupt the Bitcoin market.

[Findingnemo]

I don't remember what happened on 10th october but a single exchange can't damage the bitcoin's reputation and it just damage the exchange's. Stop using centralized exchanges and even if you do just do it for spot order and sell/buy then immediately withdraw the funds back to wallet. That is how I am using a crypto exchange and I don't have the risk of losing anything.

Not your keys Not your cryptos.

[Strongkored]

Even trusted platforms can intentionally harm their users. So, no matter how trustworthy Binance and other major exchanges are, they still can engage in dirty tricks that harm their users.
It could be said that this is the dark side of the crypto world, few people become rich purely from trading, investing, or doing business because there are always tricks being used that harm others.

[Faisal2202]

It's obviously leeching off Bitcoin.
They need Bitcoin hence even while CZ promotes Bnb he also does Bitcoin
Because they can't survive or exist without Bitcoin but Bitcoin can survive without binance.

Does the unregulated CEX damage Bitcoin's reputation?

Whether regulated or unregulated
Bitcoin isn't supposed to be used via a centralized exchange.

Well said, he is pretending he doesn't need Bitcoin, but in reality, his BNB is also supported and created based on BTC. As a matter of fact, he built all this because of his investments in bitcoin and, of course the knowledge he possesses.

But now, in any interview when he is asked about his investments and how he pays for things, he says, I have only one crypto card, and it has BNB in it, whenever I pay for something, I pay with BNB and I don't carry fiat.

That is a marketing stunt but he odefinitely wns bitcoin definitely.

[Obim34]

I don't remember what happened on 10th october but a single exchange can't damage the bitcoin's reputation and it just damage the exchange's. Stop using centralized exchanges and even if you do just do it for spot order and sell/buy then immediately withdraw the funds back to wallet. That is how I am using a crypto exchange and I don't have the risk of losing anything.

Not your keys Not your cryptos.

I think it needs to be said over again before people stop being victims. Trust Wallet which isn't a major CEX, was also involved in an extension breach, funds were lost and the vulnerability has nothing to do with Bitcoin. Whatever challenges that comes with using CEX are handled by central authority, they are held responsible not Bitcoin.