Bumpy road ahead for Binance and for crypto

Binance CEO Changpeng Zhao warns that the next few months will be a bumpy road for crypto.

Confidence undermined

As well as suffering a year-long bear market in which several platforms have collapsed, crypto has come under the most brutal hammer as regards impending regulation and FUD is washing back and forth through the sector, undermining confidence as it does so.

This must be manna from heaven for governments and banks as they seek to take crypto out of the hands of retail investors and build a regulatory wall that keeps them out and ensures that the sector is squashed flat until they can roll out their central bank digital currencies (CBDCs).

FUD continues

Currently, Binance is bearing the brunt of all the FUD that has been propagated. Over recent days a total of more than $3 billion has been drawn off of the exchange. Binance appears to be solvent but who knows what could happen if the FUD were to continue?

It should be hoped that most retail investors would be aware by now that the best way to protect themselves is to take their digital assets off of centralised exchanges and store them in wallets held in their own custody.

Binance services maintained

Changpeng Zhao (CZ) noted that if governments could become more accommodating towards digital currencies, this would address some of the issues experienced by exchanges like Binance in recent weeks. Additionally, he implored people not to jump into cryptocurrencies without being aware of the risks associated with them.

Going forward, CZ said Binance would be focused on providing customers with reliable services and ensuring their security is always maintained at a high level. He also mentioned that they had set up various teams to monitor suspicious activity and combat fraud within their system. 

Overall, it looks like deposits are back on track for Binance users; however, it’s important for all crypto holders to remain mindful of potential bumps along the way as well as the risks involved with the markets, traditional as well as crypto.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.