Will Binance Bankrupt | Lesson 15 | Crypto Series

Hello, Everyone

Welcome to this post. I hope all of you will be doing well and be fine and happy with the grace of Allah Almighty. My Name is Ali Hassan and today I'm going to start lesson no 15 of our crypto series which is Will Binance Bankrupt or not? Here today I will try to explain everything related to Binance FUD.

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After the Crash of FTX and FTT, the trust of people in Centralized Exchanges was spoiled. People believed that Centralized Exchanges can fraud at any time and they can do nothing against exchanges as the Government or any central bodies are not backing Crypto Currency.

Nowadays there is a FUD in the market about Binance. Some people believe that Binance is going to die just like FTX. I hope after this article there will be a clear image in your mind of Binance.

How FTX Crash impact Binance

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Creating a FUD in the market is not too difficult. In Crypto Market Twitter and News have special importance One tweet lead to the bankruptcy of the Exchange. Yes, it is true Binance has the biggest role in the bankruptcy of FTX. When the Binance CEO CZ Tweeted that he is going to sell all his FTT Assets to prevent him from Crashing like LUNA. So, people who follow CZ start selling FTT, and within minutes FTT Crash about 10%. Then more and more news came like FTX is over-leveraged and they don't have users' assets. So, they face pressure and can't handle it then they suspend Withdrawals and in a few hours, FTX was Declared Bankrupt.

Now after the incident of FTX people can't trust Centralized exchanges and literally, I also have doubts about Exchanges that are centralized because the assets we have in Centralized exchanges are not our own because we don't have full access. Now people start moving towards Decentralized Systems and Centralized Exchanges are facing problems Binance is one of them no doubt FTX left an impact on the Centralized Exchange market.

What is Binance FUD

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Actually, Binance has to audit its system and they were delaying the process for some reason in this situation, people start posting that Binance is not going through the audit process because they don't back the amount they took from Users, and Now Binance is also over-leveraged. This news spread in the market and people start withdrawing their coins.

In Almost 24 hours Binance face more than $1.2Bln Withdrawals and Binance successfully face this withdrawal pressure.

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Then this pressure continues and even Binance handles more than $6Bln Withdrawals in 2 or 3 Days Still, the Withdrawing process is smooth. Binance holds more than $60.5Bln in their Cold Wallet. So, their case is somehow different from FTX which cant bear less than $1Bln pressure because they don't have the user funds.

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**Is Binance safe Now?

The answer is Yes as well as No. Binance FUD is over as well as not over. Although Binance successfully pass the stress test and I think this pressure of withdrawal will help it to build users' trust but I want to remind all of you that Centralized Exchange is not safe enough to consider it your Personal wallet.

I will suggest of your transfer your long-term saving to a decentralized exchange or wallet and keep your day trade portfolio in Binance or any other exchange. Centralized exchanges can Bankrupt at any time because they are playing with High leverage and some exchange also play with user assets.

Beware of the Blockchain selection when you are trying to withdraw funds because if you select the wrong chain your assets may be lost and can't recover again.

Thank you for reading my post, if you need any help or have any questions you can ask me in the comment section. I'm always available for my community.

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Cc: @hungry-griffin