Why investors are again talking about the possible collapse of Binance
Date: 2023-08-28 Author: Karina Ziganova Categories: IN WORLD
In August 2023, Bitcoin fell from its previous levels around $30,000 to around $26,000. Against the backdrop of a decrease in BTC, speculation appeared on the network about the true reasons for what happened. In particular, the head of the largest crypto exchange Binance, Changpeng Zhao, was accused of falling bitcoin. Many believe that the trading platform he controls is on the verge of collapse. We tell what members of the crypto community think about the risks of the death of Binance, how the event may affect the market and how the fall of BTC is connected with Zhao
What's happening
Many members of the crypto community blame the head of Binance for the fall of bitcoin in August 2023. Investors believe that Changpeng Zhao is actively selling BTC in order to support the exchange rate of the trading platform’s native token, BNB. The sale of a large volume of bitcoins by the head of Binance, representatives of the crypto industry are sure, put pressure on the cryptocurrency rate. Zhao himself denies any involvement in the fall of BTC.
According to members of the crypto community, the businessman was forced to artificially support the BNB rate due to regulatory pressure that hit the crypto exchange. That in 2023 alone, Binance lost the issuer of its stablecoin Binance USD (BUSD), fell into the sight of the US Securities and Exchange Commission (SEC) and the US Commodity Futures Trading Commission (CFTC). In parallel, the crypto exchange faced accusations from European regulators.
According to one version, Binance's problems began with the collapse of the FTX crypto exchange in November 2022. That the death of the trading platform was largely provoked by Changpeng Zhao. FTX actively funded politicians. Against the backdrop of the collapse of the stock exchange, the flow of money to the government stopped. Ostensibly in retaliation for the collapse of FTX, which deprived politicians of an important source of funding, regulators "pounced" on Binance.
According to many members of the crypto community, pressure of this magnitude could lead to the collapse of Binance. However, this is not the first time that the crypto exchange has been “buried”.
What will happen to the crypto market in the event of the collapse of Binance
Jesse Myers, CEO of Onramp, shared his opinion on what will happen to the market in the event of a collapse of Binance. In his opinion, it will take several weeks for the market to recover to its previous positions. His point of view is based on an analysis of the behavior of the most capitalized cryptocurrency, bitcoin, against the backdrop of the collapse of the once one of the largest crypto exchanges FTX. In this case, it took the market eight weeks to recover.
Jess Myers believes that the collapse of Binance will help the market clear. At the same time, such a scenario, in his opinion, will not turn into death for the crypto industry.
