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As you know, the crypto ecosystem is growing faster than the previous day, and everyone from the artist to the politician, from the CEO to the homeless on the street is talking about crypto money. Compared to the past, we are closer than ever to the acceptance of cryptocurrencies, which we call Mass Adaption. Some countries have even started to accept Bitcoin as their official currency. Today I will talk about Binance, the well-known giant of this growing market.
First of all, for those who don't know, what is Binance?
Binance is the world's largest cryptocurrency exchange in terms of both trading volume and registered users, and has its own currency called Binance coin. Everything looks pretty good doesn't it? It's like there is no problem. Let's take a look at why Binance is a big risk to the cryptocurrency ecosystem.
1- Centralization
I mentioned above that Binance is the world's largest cryptocurrency exchange today. This size makes Binance the richest wallet address for many cryptocurrencies, and keeping this amount in a single hand unfortunately affects cryptocurrencies established for decentralization purposes. Binance holds 2% of the total bitcoin supply in its cold wallets today. Although 2% may sound low, let me show you what can be done to the market even with such a small amount.
This chart you see is from Binance's Bitcoin cold wallet, and it shows how many bitcoins are in the wallet every day. Where it goes from November 8 to November 9, the graph suddenly drops down and about 100 thousand Bitcoins are transferred to another address.
With a single transfer, the bitcoin price drops from $9,400 to $8,800.
Just a single transfer devalues bitcoin by 10%. It's scary.
2- Loss of anonymity
As you know, Bitcoin is a currency issued for the purpose of anonymity due to its structure. Exchanges such as Binance and binance unfortunately destroy this goal of anonymity. All cryptocurrencies you buy lose their anonymity due to the KYC practices imposed by the world's governments on exchanges for money laundering. Think twice before buying cocaine on Silkroad with the Bitcoins you bought from Binance.
3- Binance coin is protected by only 21 people!
Yes, you heard right! BNB, the 4th largest cryptocurrency and Binance's official coin, is protected by only 21 nodes today. Binance coin, which has a market cap of approximately $75 Billion with the tokens in it, is protected by only 21 Nodes.
This number is about 185.000+ for Ethereum 2.0, which is still in the testing phase.
4- Binance is manipulating the market for its own benefit
As you know, we have seen dozens of times in the past and we still continue to see how much the price of any coin can rise with the news of being listed on binance. Binance does this all the time, and unfortunately, projects that pay more are listed instead of quality projects that need to surface because of what it's doing. What a disgrace against the development of blockchain technology.
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