Can Binance fall the same way as FTX?

[ErealBoss]

Binance getting law suits every few months scares me everytime. I got over 40k in crypto on there... I am wondering if i should just move to cold wallet?

The possibility of Binance facing a situation similar to FTX or any other exchange can't be ruled out entirely, as the cryptocurrency space is subject to regulatory changes, legal challenges, and market dynamics.

Moving your crypto to a cold wallet (a type of secure, offline storage) is a prudent step if you're concerned about the safety of your assets on an exchange.

 

[Gants-P]

40000 + fees. Lots of fees.

 

[fordevchain100]

Dont ever keep on online wallet

 

[Seotify]

I wouldn't trust any exchange whatsoever. Weren't there reports Binance wasn't in a better situation than FTX afterall?

 

[INCC]

Personally, I don't believe it can happen (by judging the information we have).

The chances they going bust as FTX are slim because they have customer funds covered (controversial reports on that tho)

The issues they have with the SEC & the U.S. government are rather local - Worst case scenario they need to leave the United States and pay a huge fine but they are well established in the EU and Asia.

BNB can take a lot of beating tho so if your funds are in their token then it's time to switch to BTC instead.

A new bullrun is driven by a shitcoin boom that all correlates to a high BTC price meaning that in the long term it doesn't mean shit as the boom will start regardless but Binance's "well-being" dictates when a new boom will begin.

 

[Nelly25]

binance will stand and i believe this.

 

[TimeKeeper5]

Binance getting law suits every few months scares me everytime. I got over 40k in crypto on there... I am wondering if i should just move to cold wallet?

Use CEXs like a public toilet, get in - do your business - get out. Never leave any funds on ANY CEX. If history has proven anything it’s there’s no such thing as “too big to fail”.

 

[Toz]

Binance getting law suits every few months scares me everytime. I got over 40k in crypto on there... I am wondering if i should just move to cold wallet?

I'm going to ask this as nicely as possible.

Knowing that one of the most common quotes in the crypto space is, "Not your keys; Not your crypto.", why on Earth would you leave your money for an extended period of time (time > 1_hour), on an EXCHANGE, as exchanges do not give you any private keys?

Think of it like this...
Keep in mind, it's called an EXCHANGE.

You travel from USA to Thailand. Your flight lands in Bangkok and you're ready to get some Thai Baht (their currency). You visit an EXCHANGE. You give them your USD, and in exchange, they give you some THB. Do you take some of the THB with you and leave the rest at the EXCHANGE (say, $40,000 worth), telling them you'll be back at some later date to pick up the rest of your money?

Why or why not?
..and if not, then why the hell would you do it on the internet?

 

[ogmoonboi]

Having USDT on Binance right now sounds like a recipe for disaster.. would recommend moving to cold storage and maybe choose another stablecoin as well (not BUSD lol.)

 

[SirLouen]

I'm going to ask this as nicely as possible.

Knowing that one of the most common quotes in the crypto space is, "Not your keys; Not your crypto.", why on Earth would you leave your money for an extended period of time (time > 1_hour), on an EXCHANGE, as exchanges do not give you any private keys?

Think of it like this...
Keep in mind, it's called an EXCHANGE.

You travel from USA to Thailand. Your flight lands in Bangkok and you're ready to get some Thai Baht (their currency). You visit an EXCHANGE. You give them your USD, and in exchange, they give you some THB. Do you take some of the THB with you and leave the rest at the EXCHANGE (say, $40,000 worth), telling them you'll be back at some later date to pick up the rest of your money?

Why or why not?
..and if not, then why the hell would you do it on the internet?

They are acting nowadays as a cryptobank more than an exchange.

With PayPal happens the same: you can hold your credit there and they are technically just a payment processor

Being a bank means a lot of advantages for example Binance Pay or Binance Card (which seems to be failing).

Personally I hold a good amount of cash in Binance for my daily transactions via Binance Pay (in some countries like south America this is a golden payment method). So I don't find in Binance a simple exchange. For such exclusive purpose I would rather choose a DEX.

 

[sscaz]

I'm going to ask this as nicely as possible.

Knowing that one of the most common quotes in the crypto space is, "Not your keys; Not your crypto.", why on Earth would you leave your money for an extended period of time (time > 1_hour), on an EXCHANGE, as exchanges do not give you any private keys?

Think of it like this...
Keep in mind, it's called an EXCHANGE.

You travel from USA to Thailand. Your flight lands in Bangkok and you're ready to get some Thai Baht (their currency). You visit an EXCHANGE. You give them your USD, and in exchange, they give you some THB. Do you take some of the THB with you and leave the rest at the EXCHANGE (say, $40,000 worth), telling them you'll be back at some later date to pick up the rest of your money?

Why or why not?
..and if not, then why the hell would you do it on the internet?

Then why are you using a bank that is same thing as binance with that logic?

 

[Toz]

They are acting nowadays as a cryptobank more than an exchange.

With PayPal happens the same: you can hold your credit there and they are technically just a payment processor

Being a bank means a lot of advantages for example Binance Pay or Binance Card (which seems to be failing).

Personally I hold a good amount of cash in Binance for my daily transactions via Binance Pay (in some countries like south America this is a golden payment method). So I don't find in Binance a simple exchange. For such exclusive purpose I would rather choose a DEX.

Crypto exchanges have been operating like that for over some time. That's nothing new. If you want to hold a small amount on there so you can use your plastic, I get it. I do the same with Coinbase, as I get decent crypto rewards when I swipe.

But, I only keep an amount of money on there that I'd be okay with never seeing again.

Then why are you using a bank that is same thing as binance with that logic?

I personally don't like banks. I agree with you. I use banks for what I need to use banks for, and moments after I no longer need the bank, I pull my money out and put it somewhere where I have control over my money. Banks are the reason for why crypto needed to be created to begin with.

 

[citadel7]

Considering the nature of the cryptocurrency market, it wouldn't be wise to completely dismiss the chance of Binance encountering a situation akin to what FTX or any other exchange has faced. The landscape of this industry is dynamic, and unexpected events can unfold, making it essential to stay vigilant and adaptable.

 

[Scorpion Ghost]

Binance getting law suits every few months scares me everytime. I got over 40k in crypto on there... I am wondering if i should just move to cold wallet?

40k?

Send it to me, i keep safe for you bro

 

[jaru0]

Aren't there any traditional banks that offer crypto trading by now? I just know that the Swiss Post bank will have it starting from next year. Can't imagine anything safer than a bank owned by the Swiss government.

 

[MR.Spuf]

..and if not, then why the hell would you do it on the internet?

Cause it's not just an exchange, it's kinda a bank, an investment firm, trading also, and let's not forget that you can pay things (still) using their card. Easy to run a cashflow business if you use crypto as currency.

They are acting nowadays as a cryptobank more than an exchange.

Exactly this!

 

[RoboTech]

Yes cold wallets are the way to go! Binance banned my account lately without any clarification. Luckily I was able to withdraw my crypto.

 

[Hontione]

Binance getting law suits every few months scares me everytime. I got over 40k in crypto on there... I am wondering if i should just move to cold wallet?

Move some part of your crypto to cold wallet.

 

[Toz]

Cause it's not just an exchange

Yes it is.
Not your keys? Not your crypto.

 

[Panther28]

I listened to a report of one of the people talking to industry insiders about saying that FTX was caught as a good old fashioned scam, cause it was propping itself up with thing like insurance funds, to suppoisidly mitigate against losses or whatever technical shit they do, that Sam used to prop up his lifestyle with. And the industry insider was like "wow, Binance has an insurance fund too" So worth looking into the ins and out of that, before the US regulator takes a second look at binance too. lol