Here’s Why Everyone Is Freaking Out About Binance...

Article source, here.

TL;DR

• Over the past few days Binance has paused Bitcoin withdrawals going from its platform to users' private wallets (twice!).

• But much of the crypto community is used to using decentralized services, where a powerful single entity can't stop them from transacting (even if they tried).

• Which has resulted in all sorts of "I told you so"'s floating around the crypto community (the common speculation being that the platform was about to collapse).

• Which is a little skittish - yes. But most people still have a bitter, FTX-flavored taste in their mouth. (So some freak outs are to be expected).

Full Story

Selling products/services to the crypto community as a centralized entity is like trying to convince your grandma that online shopping is safe.

There's very little trust - and the moment something goes wrong, distrust is galvanized, and all sorts of "I told you so"'s are thrown around.

That's because much of the crypto community is used to using decentralized services, where a powerful single entity can't stop them from transacting (even if they tried).

But centralized platforms are still able to offer some services that their decentralized counterparts can't.

Like, for example, trading your crypto into US dollars.

That's where centralized exchanges, like Coinbase and Binance come in.

The latter of which just gave the crypto community a new reason to distrust it. See, over the past few days Binance has paused Bitcoin withdrawals going from its platform to users' private wallets (twice!).

Which resulted in all sorts of "I told you so"'s floating around the crypto community (the common speculation being that the platform was about to collapse).

Which is a little skittish - yes. But most people still have a bitter, FTX-flavored taste in their mouth.

(So some freak outs are to be expected).