Connect with us

Blockchain

Members of the cryptocurrency community discuss running banks on Binance

Avatar

Published

on

Over the past 24 hours, cryptocurrency exchange Binance has seen outflows of over $1.14 billion due to the rise of FUD — or fear, uncertainty, and suspicion — within the crypto ecosystem.

According to the CEO of Binance Changpeng “CZ” ZhaoThe exchange has seen this before, and believes it is “a good idea to do a ‘stress test of withdrawals’” at every CEX [centralized exchange] on a rotational basis.”

The bank run on Binance comes a month after CZ ran the bank on FTX, which led to liquidity problems and its eventual collapse.

Despite the rampant FUD within the cryptocurrency community, many members remain optimistic that Binance will weather the storm and not share the same fate as FTX. Others speculate that if Binance crashes, the entire crypto industry could be brought to its knees.

bitcoin (BTC) Millionaire Carl Ranvelt said on Twitter: “If Binance collapses, we will all be beaten.”

Advertisement

Author and Bitcoin enthusiast Layah Heilpern shared: “Do you realize that if Binance falls then everything else will collapse? Yes, #bitcoin will survive, but the entire cryptocurrency ecosystem including stablecoins will die.”

Twitter user Crypto Cognac shared that the Binance drop would not benefit the space, as it would take the space “back to the stone age.”

Advertisement

Timverse said that they believe that if Binance becomes insolvent, it will “set the industry back” by years — though the cryptocurrency will survive because “it was here before binance came along and it will be here after.”

Crypto Analyst and Government Consultant Del Crxpto accused the crypto media of promoting FUD about Binance, saying, “The media is trying to cause a bank to run binance. Audit The truth is time is audit #1 and binance has stood the test of time.”

Related: CZ confirms abnormal token price action on Binance that is not related to the hack

On December 11, Cointelegraph reported this Binance’s proof of reserves raised signs of danger For accounting and finance professionals Competitors called it “pointless”because it failed to include antagonists.