Without ChangPeng Zhao: Is Bitcoin an orphan?

Following the resignation of ChangPeng Zhao, experts on the crypto planet, all wonder how Bitcoin could survive the CZ departure as we like call the now former boss of Binance. A burst of analyzes comes from everywhere without giving a precise answer of the consequences on bitcoin, the leader undisputed cryptocurrencies.

It is very clear that the influence of ChangPeng Zhao on the world of crypto- currencies is immense. Its position as the largest shareholder of Binance offered it a central place in the growth strategy of the exchange and cryptocurrency market as a whole.

The recent demands of American justice which put the platform back into the ranks of global regulation marked an important turning point in the strategy of the company’s approach which was until now opaque for several years. The departure of CZ and the submission of Binance to American regulation have caused divisions in the cryptocurrency sector around the question of whether this is positive or not for cryptocurrencies and Bitcoin in particular.

Two contradictory positions clash within the crypto community. currency: one is optimistic while the other remains very negative. At the level of the wave of optimism springs of course a possibility of market stability and investor confidence.

Many cryptocurrency investors and industry leaders consider positive the resolution of the problem of the opacity of Binance by the American justice system. This new Binance submission status may decrease or eliminate major risks for the market as a whole. This point of view is shared with other industry leaders, arguing that this new adoption operational will certainly produce some stability to the volatile market cryptocurrencies.

The positive aspect is also regulatory compliance and maturation of the industry. There Binance regulation could extend to all other cryptocurrencies and thus allowing compliance with the rules of the entire crypto-currency industry. Like all cryptocurrency exchange platforms like Binance this both times are governed by the same standard of respect for American law, all the entire sector could mature, stabilize and attract more institutional investors.

Still in this package of advantages systemic risks are also reduced because this investigation by the market police will have reduced the risks of Binance collapse. This would have had a detrimental impact on the entire system. cryptocurrency exchanges. According to Chung, CEO of CF Benchmarks, the disappearance of Binance remained a potential systemic risk for the securities market cryptocurrencies. Still according to Chung, this regulation will make it possible to order that any changes to Binance be ordered.

Finally there is also optimism regarding a possible signal of the rise. Of course that the question that arises concerns the evolution of the prices of crypto-currencies notably bitcoin. Some experts believe that this type of event produces favorable long-term results. This Binance affair and its boss ChangPeng Zhao bears a striking resemblance to that of BitMex and Hayes. This example has been given by experts to defend long-term benefits.

There is also no shortage of arguments among anti-regulations, opposed to decision of the American justice system. These observers from the pessimist camp are worried about internal instability. Binance will face significant operational and leadership difficulties. The decapitation of the company is not will not be limited to Changpeng Zhao alone. It could affect other people responsible. These mass departures of group leaders can have consequences on the strategic direction and innovation of Binance, and lead to the end of the dominance of the latter in the market.

The other concern concerns both the reputation of the group and the large fine financial. Even if the large amount of 4.3 billion dollars in fines does not threaten not the existence of Binance, there remains a very significant financial cost. In addition to this financial strike by American justice, there is the reputation of the company and its overall confidence in the cryptocurrency market, and among wealthy investors in particular, who risk being seriously damaged.

Another threat is the risk of a dangerous precedent for pressure regulatory. The Binance affair remains the largest investigation by the police of the financial markets of American justice and could be at the origin of imposing stricter rules in the future. After FTX, the Binance affair is a other specific resolution which concerns crypto-currencies. This actually means that no cryptocurrency is safe, which risks transforming the landscape of crypto sector.