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.