You can see the Crypto ecosystem as an apple basket. There are good apples and bad apples. Stored together in a basket, a bad apple has a huge impact on good apples:
- The good apples are the projects and platforms which bring value to the Crypto ecosystem - e.g., Bitcoin (BTC), Ethereum (ETH) which brought smart contracts, or Aave which created the largest decentralized lending platform;
- The bad apples are the projects and platforms which bring more problems than value - e.g., LUNA, Celsius, FTX...
Binance brings both value and problems:
- Binance value: it allows to easily swap fiat currencies for cryptos and back; the BNB Chain is a real alternative to ETH; they also helped DeFi projects to grow;
- Binance problems: too big, centralized, sometimes fuzzy, and CZ seems to be the only one to decide about everything.
Therefore, Binance is a kind of big apple which helped a lot the Crypto ecosystem but could turn bad if they did not work towards more decentralization. Trustwallet and the proof-of-reserve are appreciable efforts, but they need to be accompanied by more decentralization in the governance of Binance platform.
Disclaimer: this article does not contain any financial advice. The information is provided for general informational and educational purposes only.
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