"There is no place for Binance in the new era of Crypto" I said several times. First of all, Binance is still seen as the primary reason of FTX's collapse due to the hype the company created and the fear they triggered to sell off the exchange tokens.
In the U.S., there are a lot of investors who lost their money because of the fear, uncertainty and doubt that Binance created through the collapse of FTX. As it damaged thousands of the U.S. investors, the exchange has long been under the radar of the government.
Today, a firm step was taken and an offer was made to Binance. The government asked Binance to pay for $4B for the fraud actions that the exchange said to be a part of. In case of a payment, the exchange is not going to be accused of such reasons. Yet, as the amount of money is really high, CZ may also refuse to pay for that amount of money.
Binance is Out, Already
Binance has been losing its power with no doubt. This was a part of the U.S. government and the U.S. based exchanges because the dominance of Binance was a pressure on the other exchanges, especially on the ones that are global, and the company used its presence and advantages very affectively.
Binance's origin can be extended to China, the reason why the U.S. government want to get away from Binance becomes clearer.
1- The case of FTX needs to be paid
2- The domination of Binance should be eliminated
3- New crypto must be, directly or indirectly, tied to the stock markets
As Binance is strong and popular crypto exchange around the world, it is not easy to ruin its reputation and operations. When someone says "SAFU", the exchange directly comes to mids. There are several other marketing achievements of the team.
$4B is a lot!
If any other crypto exchange was charged for that amount of money, I would say that the exchange cannot pay for it and it would eventually collapse. Yet, Binance has a lot of money and an emergency fund for surprise expenses.
According to Defillama, Binance manages more than $60B money when the investors' / customers' funds are also taken into consideration in this calculation.
When it comes to the profit made by Binance, people speculate about losing almost half of the yearly earnings to be a company that adores regulations.
Binance can, and most probably will, pay for that. However, that dilemma will take some time and it might be the reason why the market turns red. Currently, the charts of Bitcoin points an important price level: 38K!
It is getting harder and harder to close above $38K to aim higher for Bitcoin. The narrative that the ETFs will be preplaced by the attitute of Binance against the policy makers that charge the exchange with $4B if the company wants to continue in the market.
If you see a Tether FUD, BNB crash or pump and dump, or very bad news, then we can believe in the market is going through a correction.
Stay strong and watch the news very closely. The attitude of Binance may affect directly the regulatiın plans of governments all around the world.
What do you think will happen soon in terms of the high amount of charging fee?
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