Is Binance in the early stages of a meltdown?

Yesterday I saw some chatter about Binance’s BNB price weakness and some effect on the price of Bitcoin, as well as some vaguely ominous “get your coins off Binance warnings”, so I did a little bit of Twitter digging. I’m curious to get others’ opinions on this. This is all speculation, so take it with a heavy grain of salt …

Traders have noticed a BNB price of $220 being “heavily defended” on Binance. They surmise that Binance has to keep the price above that number to prevent trouble from BNB-backed loans.

In recent days (past week) traders have noticed lots of selling pressure on Binance’s Bitcoin that is not reflected in other exchanges. They suspect Binance is selling Bitcoin to prop up BNB.

Best summary I read was here:

Trader eyes are on the price of BNB. If it keeps dropping it could trigger a death spiral similar to FTX’s situation with their token last winter. This will cause the price of Bitcoin to drop in the short-term as Binance sells Bitcoin to buy BNB to try to save it.

Any thoughts on this? If Binance goes down it would be a much bigger fail than FTX. But Binance’s death has been predicted almost as many times as Bitcoin’s death has, and has proven resilient.

My personal thoughts: I don’t trust Binance or CZ, and I dislike any exchange that peddles their own token as heavily as Binance / / FTX have. I added BNB to my watchlist today and am hoping for exciting cratering in the price, with the side bonus of being able to scoop up cheap Bitcoin. The FTX fail was a gift for buyers, would be amazing if lightning struck twice.

50 thoughts on “Is Binance in the early stages of a meltdown?”

  1. After FTX collapse i don’t trust any exchange , and i only deposit usdt to these exchange when i need to buy or sell and then back to my wallet

  2. It may be.

    The fall of Binance would be the biggest blow to crypto since Mt.Gox.

    Don’t trust any CEX, own your crypto and you’ll be fine.

    Crypto will survive.Can you imagine the discounts if it happens? Once in a lifetime opportunity for some!

  3. I understand the compulsion to want the opportunity for cheap BTC, but Binance going down would have tremendous ripple effects throughout the industry. It would be a LOT of pain in the short and medium term, likely making the FTX fiasco look like a dress rehearsal.

  4. If binance collapses we’re going to see some sweet prices so make sure you are level headed and don’t confuse your buy button with your sell button.

  5. If Binance went down it would be the first time me suggesting to people to sell everything

  6. Reminds me of when Caroline tweeted out Alameda’s FTT liquidation price, once the number becomes known the headhunters get right to work

    Surefire way to send your shitcoin to zero

  7. I believe so yes, they can’t or won’t even try to comply with major countries (US, Canada, UK)

    That’s definitely not a good sign. Blackrock chose Coinbase, there’s a reason for that too

  8. >Traders have noticed a BNB price of $220 being heavily defended” on Binance.

    Source: the same people who think that a chart in the shape of an animal will have an influence on future prices.

  9. In my opinion, the collapse of Binance will be like a blow to the balls of Crypto.

  10. There’s a lot of FUD with some news every now and again. I’d avoid adding to it, but don’t trust exchanges either

  11. Binance can’t collapse before they list moons!
    But seriously, Binance going down would be nuclear crypto winter grade of an event.

  12. Most of this is just hyper speculation with no evidence. BNB has broken 220$ multiple times and is below it. For this to be an FTX event Binance would have to be using users crypto deposits and using BNB to cook their books, however we know Binance has at least ~600K BTC in their cold wallets. FTX right before collapse had almost zero.

    If Binance was already stealing user funds they have a deca billion dollar pile they can use to get out of this hole no problem, there is not enough BNB in outside entities hands to evaporate billions in buy pressure. Unlike FTT which Binance held 30% of. People are just comparing events constantly and think everything will go down the same way it did previously. I think this is very trumped up

  13. The only CEX I trust right now is Kraken. Binance is too big and suspicious at the moment

  14. I would not at all be surprised if they were propping up BNB. But man, if Binance goes down the BTC halving might not mean much this cycle

  15. they can ‘defend’ it all they like. ain’t going near it with a fucking barge poll

  16. If binance falls get ready for the ultimate firesale, and likely the ultimate crypto winter

  17. I’ve been thinking Binance was going to collapse soon for like the past 3 years. Definitely been wrong so far. Maybe I’ll eventually be right.

  18. I hate posts like these because they provide no evidence, just fud and conspiracies. FTX went down because their balance sheet was leaked and it proved that they were partly insolvent. This isn’t proof of anything, just mere speculation

  19. Those that have been in crypto for a while know Binance likely has some skeletons in the closet. Is it greed that makes people just do whatever the hell they want to get money? I dont get it.

  20. Don’t mess with binance, look what happened to ftx when they started spreading rumours.

  21. Another day, anothor post about Binance going to shit

    Edit: Aand it’s downvoted. Classic

  22. Sometimes it’s always best to prepare for the worst, I’d hope not but really who knows anymore, if binance hypothetically did go under and meltdown into a death spiral it would be interesting at the very least to see where the market ends up..

  23. If you want some real Binance doomsday FUD, may I introduce to Mr Adam Cochran.

    That being said, I wouldn’t touch BNB with a 10ft pole. It’s obviously being used for mass manipulation by CZ and Binance and it’s only a matter of time before it catches up to them.

    $BNB is trending on Twitter right now as well.. 😬

  24. It depends if they’re stupid enough to take loans against BNB as a collateral.

    But then again, BNB was trading at 30$ just a few years ago and Binance has been around for a while before that.

  25. Also watch the market cap of BUSD. It has only been going down in big chunks for months. It feels pretty suspicious to me imo.

  26. Never trusted Binance. Never will. CZ is shady AF and I don’t trust a single word that comes out of his mouth.

  27. Not a chance Binance goes down lmao

    Edit – ah so I’ve been downvoted but the guy saying exactly the same as me but in long form gets 55 upvotes🤔

  28. It’s possible. I don’t think it will be catastrophic for crypto. Some other big player will fill the void. Rinse and repeat.

  29. Binance Coin pros & cons with related info are in the collapsed comments below.

  30. Binance going down will create a domino effect that will catapult that entire ecosystem

  31. I don’t think the price of BNB has much to do as an indicator or Binance collapsing or anything like that. Obviously price will crash if they do collapse, but that would be after public news. Whole market is dipping and so will BNB.

    Not a huge fan of Binance either and who knows what they’re doing in that black box, but I also don’t think they’re going to collapse anytime soon…

  32. Don’t think they fail completely more like become an irrelevant exchange. like bitmex

  33. my personal opinion on this : Binance (or any other centralized exchange should be able to fail without having too much of an impact on the cryptospace as a whole.

    Otherwise there is something wrong in the first place.

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