Binance is the World's largest crypto exchange and many people believe it is too big to fail, but if I have learned anything in the crypto industry, any business with leverage can fail. When I have pointed out problems with Binance previously, I have gotten a lot of backlash and understandably so, since the vast majority of people use this exchange. Reality will happen whether people listen or not and I wish I would have been more vocal about Celisus before it failed, instead of keeping my reservations to myself.
Binance Coin
Binance is essentially a giant unregulated crypto casino, which allows users to use massive leverage to make bets in either direction on pretty much any crypto. Binance has also launched its own coin Binance Coin (BNB) in order to raise money for the company and allow users to buy their coin and convert it into other altcoins that are traded on Binance. This has made Binance Coin the lifeblood of all these hundreds, if not thousands of altcoins aka shitcoins, where in order to cash out you need to sell your altcoin for BNB and then convert it into cash or Bitcoin. So essentially there is no liquidity or way to exit any of these altcoin positions unless there is BNB because Binance has made themselves the whole entire centralized ecosystem. Binance Coin has begun to crash and therefore all altcoins which rely on BNB as liquidity have begun to crash. If Binance Coin collapses you will see a shitcoin apocalypse with all the coins relying on it going to pretty much zero and anyone who trades these cryptos losing their shirts.
Why is Bitcoin Crashing?
Binance is one of the largest holders of Bitcoin in the World and they have one wallet containing 250k Bitcoin in it! In order for Binance to defend Binance Coin they will need to inject liquidity to stave off the selling, which they will do by selling Bitcoin into the market to raise cash. Binance could be selling massive amounts of Bitcoin into the market in the short term causing the Bitcoin price to crash. If you are a long term investor in Bitcoin, this will be an incredible opportunity to buy when there is the proverbial blood in the streets. In my opinion, I think Binance is the last shoe to drop in this Bitcoin bear market and after this shake out it will be a new bull market in Bitcoin.
Binance has a lot of powerful enemies after it caused the FTX collapse, which was the largest political donor to the democratic party. I also believe that major corporations like BlackRock want to accumulate as much Bitcoin as possible, at the lowest possible prices and with their political and media influence will take out Binance to crash the price and buy all the Bitcoin they can from weak retail investors who will be selling. The only way to beat the system is to buy Bitcoin and get it off exchanges and into cold storage, where you will have complete ownership of your Bitcoin, which will play a critical role in your future economic prosperity and freedom.
If you need to use an exchange, I would recommend switching to Kraken Exchange. No exchange is safe, but I believe this is a better option than Binance.
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