Following collapse of FTX economists are already speculating similar fate for Binance, which until now is world’s biggest crypto exchange by trading volume. According to media reports, Binance has been the focus of crypto market speculation in recent weeks after blockchain watchers detected billions of dollars of deposit outflows, the company’s auditor begged off and report emerged the company might be under investigation by US authorities.
Media reports said, anxieties are clearly reflected in the recent downward trajectory for BNB, in-house token of Binance. The price of BNB has tumbled about 17 percent in December 2022 to US$ 245, which is down 5.7 percent. At the peak in May 2021, BNB changed hands at US$690, according to data from CoinMarketCap. The token’s market capitalization has dropped to around US$40 billion, from a record US$116 billion at one point last year.
At the core of the concerns is whether Binance might be prone to a loss of confidence similar to November’s stunningly swift unraveling of Sam Bankman-Fried’s FTX exchange. And it’s impossible to ignore that the first signs of deep distress at FTX emerged when that exchange’s own FTT token started to plunge.
So as crypto analysts home in on BNB token’s valuation, they are scrutinizing the FTT token’s arc for any red – or yellow – flags that, in hindsight, might have tipped investors off to the market’s fragility. And a key similarity stands out: Just as FTX’s FTT token had mostly failed to get listed on major US crypto exchanges, so is BNB absent from a large number of US exchanges.
Some crypto analysts speculate that major US exchanges might have steered clear of a BNB listing for fear of running afoul of regulators. Any issues on the regulatory front could also represent a risk for holders of the token.
According to Binance’s website, “BNB is the cryptocurrency coin that powers the BNB Chain ecosystem”.
“As one of the world’s most popular utility tokens, not only can you trade BNB like any other cryptocurrency, you can also use BNB in a wide range of applications and use cases”, the website reads.
But, following the recent collapse of FTX, people are becoming increasing concerned about the fate of Binance and other crypto exchanges and cryptocurrency as a whole, as most people have started considering the entire crypto sector as mere Ponzi scheme. Until now, there is no substantial ground to prove that crypto is not Ponzi and there is no risk for Binance and other crypto corporations suddenly face nosedive.
Some experts are suggesting that people who have invested their money in cryptocurrency should immediately withdraw everything as until next one year, all of the crypto corporations are under serious risk. People have already started expressing dismay and fear at the crypto sector. Here are some of the reactions:
Judy: A Scam Exchange want to list with real Exchange? What, trade Binance Nonfungible tokens for real money?
Mark: The two things that will kill Crypto Currency is (1) it being listed as a security and being regulated by the SEC or (2) an outright ban by the US government and other governments. Bitcoin was introduced as a way for the wealthy to hid their cash assets from the prying eyes of the US and other governments. Why? They didn’t want to pay taxes or they wanted to be able to launder illegally gotten money from the sale of drugs and other illegal activities to secret bank accounts. Is it any wonder that all Crypto Currency organizations are based in the Bahamas or less restrictive countries who officials can be bribed?
Vijay: The Feds busted them two days ago. Binance will fall very hard and wipe out a lot of people. When I found out that they were money laundering to scam call centers inside India, I closed my account. This company freezes your cash withdrawals every time Bitcoin crashes and make the excuse as you don’t sell your coins. Their money laundering to Call centers around the world entails, India, Pakistan, Hong Kong, Thailand, Africa, USA, and many other nations.
Bill: Investing in pet rocks makes better sense than investing in crypto. Crypto is made out of thin air on a computer. Get in – make your money – then GET OUT and let the other suckers hold the bag.
Gary: FTX.US, Binance.US, FTT, BNB, CZ has his baby mama as head of the investment arm called “Bianace Venture Capital”. Sam Bankman-Fried appointed sex partner Ellison as head of FTX investment arm called “Alameda research”. It’s a mirror image of FTX and they were even heavily commingled at one point until Binance exited with US$3 billion of FTX customers funds within 12 months of FTX collapsed.
Bianace is just a bigger Ponzi scheme.
Robert: You all need to jump crypto as by January 2nd the government will be freezing assets as investigations continue.
