No doubt, when Binance CEO CZ took to Twitter in the early moments of the FTX failure last year, he felt that the crypto world was now his for the taking. Binance’s largest competitor was on the ropes, and the internet looked to be hanging on CZ’s every word. But alas, how the mighty have fallen.
This year, Binance has been hit from all sides. Regulators have cracked down on the exchange, causing activity to plummet, and executives seem to be dropping like flies. The company’s handling of mass layoffs likely didn’t help their trajectory. Other exchanges are gaining on Binance and, while its lead is significant, pressure is mounting, its market dominance is dwindling.
One insider alleged that Binance has conducted “fire drills” for quick asset withdrawal in the event of a meltdown. Which doesn’t instill confidence. If Binance does collapse, the short-term may be catastrophic, driving the crypto market down.
Eventually, other exchanges are likely to fill its void, but it could spell disaster for trust in crypto. But if the SEC’s allegations of fraud are true, one could say Binance, like FTX, is poisoning the industry.
Yes, Binance was a major driver of innovation and growth in the industry, but that’s no excuse to remain blind to misdealings. Perhaps crypto is better off without.
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