Crypto space is just 10 years old, and still a growing. Several players have entered the markets, but still, leadership for moving the segment remains scarce. Often, the smaller players tend to follow what the segment leaders do, and this is how markets function.
Bitcoin is one such leader, which has been extensively followed. This is probably why Satoshi Nakamoto’s brainchild still remains the biggest and most valued cryptocurrency. As of August 2018, there were about 1,600 digital tokens in circulation, all of them inspired by Bitcoin in some way or the other.
Though Binance might not be the first in its segment like Bitcoin, it is almost as influential as the latter. The first crypto exchange, Bitcoinmarket.com wasn’t a big success, but Binance was. Changpeng Zhao’s brainchild is now the world’s largest crypto exchange, and is also Bitcoin kind of a leader, setting an example for others to follow.
The latest Craig Wright, Bitcoin, and Satoshi Nakamoto saga is another example. Long story short, Wright claims he is Satoshi Nakamoto, and a vast majority of crypto enthusiasts believe this to be a lie. Therefore, a wave of criticism started against Wright on Twitter and other social forums, and many famous names of the crypto space started campaigns like #CraigWrightisFraud, #Fakoshi, etc. against him.
Following this criticism, Wright decided to sue his critics for defamation and started by filing a suit against Hodlonaut, the famous crypto personality on social media. In response, and showing support for Hodlonaut, Binance CEO Changpeng Zhao warned that if Wright doesn’t stop this, Zhao will delist Bitcoin SV, Wright’s creation, from the exchange, which he ultimately did on Tuesday.
Do the right thing. https://t.co/z7HGsAZnmR
— CZ Binance (@cz_binance) April 15, 2019
Following this Kraken, another big crypto exchange started a Twitter poll on Monday, asking whether it should delist Bitcoin SV.
Should Kraken delist Bitcoin SV (BSV)? #delistbsv
— Kraken Exchange (@krakenfx) April 15, 2019
The initiative started by the Binance CEO has now taken the crypto world by storm, as the majority of the crypto users and enthusiasts on social media are demanding crypto exchanges and wallets to delist BSV.
This shows how Binance has become the trendsetter among crypto exchanges, much like Bitcoin is in the cryptocurrency space. Expressing his views on Twitter, Luke Martin, the famous crypto trader, and analyst tweeted that majority of the crypto exchanges follow Binance.
This trend of following the leader might be safe but can be questionable at times. For instance, though the majority were in against Craig Wright, he had a few of on his side as well. It is not the question of whether Wright is Satoshi Nakamoto or not (which he doesn’t seem to be); it is about the users who invested in Bitcoin SV. Delisting of BSV on Binance resulted in an 11% loss instantly, which by market standards, is huge.
The Domino effect, which might lead to other exchanges following Binance’s move to delist BSV, is a big threat to user interests, who are in no way responsible for Wright’s behavior. Binance or any other exchange must find ways to protest, other than those which adversely affect users.