Blockchain expert says potential collapse of Binance will be a disaster for cryptocurrencies

The bankruptcy of FTX, one of the world’s largest cryptocurrency exchanges, has significantly reduced investor confidence in the digital asset ecosystem. Therefore, any FUD on social media and in the media causes anxiety among users and leads to the withdrawal of funds from exchanges.

Binance's controversial report on the confirmation of its reserves has caused a new wave of panic among the company’s investors. Shane Neagle, an analyst at Cryptoslate, shared his own prediction of what will happen to bitcoin and the crypto market if Binance goes bankrupt.

According to Neagle, the general sentiment of the crypto community regarding the risk of another collapse of bitcoin and altcoins is much more negative than before the FTX crash — back then, users did not even expect that Сем Бенкман-Фрід" href="https://noworries.media/biography/sem-benkman-frid/" data-bio-id="3697">Sam Bankman-Fried 's exchange could go bankrupt and drag down the cryptocurrency rate. Another important factor is the territories in which the platform is mainly focused. If FTX worked primarily for the US market and Americans, Binance is a global cryptocurrency exchange, the collapse of which will literally affect the whole world.

«Any serious problems at Binance could create a snowball effect and trigger a new wave of withdrawals, which would eventually lead to the collapse of the entire cryptocurrency market,» Shane Neagle emphasized. On December 12, Binance customers made a record with drawal from the platform. According to DefiLlama researchers, more than $ 2.95 billion of digital assets were withdrawn from Binance wallets. At the time, the exchange temporarily suspended withdrawals due to the working hours of US banks.

«The collapse of Binance, which seems unlikely now, could have a much stronger negative impact on the entire crypto community, given the company’s global reach and importance in the world. Potential problems at Binance could trigger another major sell-off in bitcoin, which would be an obvious disaster for many ,» the analyst concluded.

It is worth reminding that it was Binance owner Чанпен Чжао" href="https://noworries.media/biography/chanpen-chzhao/" data-bio-id="3681">Changpeng Zhao who lost a record-breaking amount amid a protracted bear market and large-scale cryptocurrency bankruptcies. According to experts, his losses are estimated at $ 82 billion. However, Zhao remains the wealthiest person in the digital asset sector with a net worth of over $ 14.6 billion, although just a year ago he controlled assets worth $ 96.5 billion.