Crypto

If Binance or Tether Crash, It’s Over for Crypto, Says DOGE Founder

Dogecoin’s Shibetoshi Nakamoto thinks that a potential crash in crypto exchange Binance or stablecoin issuer Tether could severely destabilize the entire industry.

He also advised people to do proper research and understand the specifics of the digital asset industry before entering it.

Binance/Tether collapse could be devastating

The co-creator of memecoin Dogecoin – Billy Markus (better known as Shibetoshi Nakamoto) – thinks that if Binance or Tether goes down, it could be “just about over”.

The American software engineer also pointed out that a growing number of people have realized that too much centralization is a “great weakness”.

Former Twitter CEO – Jack Dorsey – was among those to agree with Nakamoto’s hypothesis. He said such a potential collapse will undoubtedly be “game over for the games”.

Still, the DOGE creator believes the potential adverse event will not mean “crypto dies” but will trigger a “big mega mondo market crash.”

Almost all disruptions of the past, including the recent fiasco with FTX, caused severe market declines and panic among crypto participants. The uncertainty also caused critics to proclaim bitcoin “dead.”

Despite “dying“Over 460 times the leading cryptocurrency is still around and continues to expand its presence across the globe. It has become legal tender in struggling economies like El Salvador and the Central African Republic, while many investors view the asset as an inflation hedge due to its limited supply.

How is Binance?

Some market participants expected the FTX crisis to cause a domino effect and drag other exchanges into the mud.

The largest cryptocurrency platform – Binance – has assured that its balance sheet is stable and balanced replenished its $1 billion Secure Asset Fund for Users (SAFU) to protect customers in emergencies.

Moreover, the company introduced an industry stimulus fund that could help struggling projects in turbulent times.

“To further reduce the negative cascading effects of FTX, Binance is creating an industry stimulus fund to help projects that are otherwise strong, but in liquidity crisis. More details to come soon. In the meantime, please contact Binance Labs if you think you qualify,” said CEO Zhao.

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