To allay concerns of global investors, Dogecoin founder Shibetoshi Nakamoto said the collapse of crypto exchange Binance or stablecoin issuer Tether could dramatically shake the entire market. thinking about.
He now offers sound guidance for experienced investors. He argues that it is desirable to learn and understand the elements of the digital asset market before participating in order to prevent large financial losses.
Apparently, if either Binance or Tether goes down, it could be “game over for cryptocurrencies,” according to Dogecoin co-creator Billy Markus (also known as Shibetoshi Nakamoto).
The American software engineer also outlined that more people are realizing that over-centralization is a “big weakness.”
“It’s great that more people finally know what this whole thing is and how the centralized thing is a huge old vulnerability, but it was like that when I bought it, so I think Binance No need to worry about collapsing of or tethers.
Nakamoto’s speculation was shared by many, including former Twitter CEO Jack Dorsey. means that it becomes impossible.
What’s more, Markus is confident that the situation will undoubtedly cause a “bigger-than-expected market meltdown on Monday.”
Cryptocurrency investors have historically responded to turmoil, such as the recent FTX bankruptcy, by enthusiastically selling their holdings on the market. As a result of all this suspicion, some have even declared Bitcoin “dead”.
Does Bitcoin Have an Opportunity?
Despite being “dead” more than 460 times, the leading cryptocurrency remains active and growing in popularity around the world, according to analyst assessments. As a result of the limited supply, it has become legal tender in countries with struggling economies such as El Salvador and the Central African Republic, and many investors see it as a way to protect themselves against inflation.
Binance is safe, claims Zhao
While many market participants expected FTX’s troubles to create a domino effect that would drag other exchanges into a quagmire, the reality was different and the impact was less severe.
Meanwhile, Binance, the largest cryptocurrency exchange, has increased the amount of its Secure Asset Fund for Users (SAFU) to $1 billion to ensure its financial sheet remains stable and protect users in the event of a catastrophe. increased to
In addition, the company has established an industry recovery fund. It is intended to help projects that are having difficulty during difficult economic times.
To disprove the allegations, CEO Zhao has publicly said that Binance is setting up an industry recovery fund to help projects that are otherwise doing well but are experiencing liquidity problems. I was. This helps mitigate the cascading negative effects of his FTX. More details will be announced in the near future.
In the meantime, he has issued a challenge to anyone seeking additional information to contact Binance Labs.
https://bitcoinwarrior.net/2022/11/tether-or-binances-failure-could-mark-the-end-of-cryptocurrency-dogecoin-founder/ Failure of Tether or Binance Could Mark the End of Cryptocurrency – Dogecoin Founder