Dogecoin founder Billy Markus has said should Binance or the stablecoin-issuer Tether collapse, it would be the end of the cryptocurrency industry.
His prediction follows that of American stock broker and financial commentator Peter Schiff, who recently said the so-called ‘crypto winter’ is in fact a “crypto extinction”.
To help avoid collapses, Bitcoin (BTC) founder Satoshi Nakamoto has always said that consumers need to get themselves up to speed and do research into the industry before investing any money.
Markus outlined a grim future should Binance or Tether were to crumble. At the same, he argued that many consumers and investors are beginning to understand that giving too much clout to a single entity, such as the case with FTX, is also wrong.
Markus was backed by former Twitter CEO Jack Dorsey, who said that another meltdown of this scale would be “game over”.
But how bad would things get and are we indeed going to experience a crypto extinction?
Markus sees a reason for optimism. Crypto as a phenomenon would be difficult to kill, but billions worth of value would be written off globally, suppressing the industry for years.
Of course, BTC has already been called dead more than 470 times recorded publicly by prominent analysts, but it never died.
There are two ways the crypto industry can move forward now – one is a domino effect stemming from FTX’s bankruptcy, with more companies dragging others down.
The other is to see Binance and Tether withstand the depression and remain unscathed, offering crypto investors a beacon of hope.
However, this would once again mean too much centralization, which is precisely what Markus and Dorsey argue puts the crypto industry at risk.
Binance has been doing well though. The company has set up a $1bn fund to protect consumer funds and the company further started its own initiative to help cryptocurrency companies recover.
Binance even intended to buy FTX, but a quick 24-hour audit of the rival’s books showed that FTX has treated its finances as a “black hole”.
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