The cryptocurrency community was shaken up last week due to the feud between Bitcoin SV [BSV] and, well, everyone else. Following the legal charge, the climax of the “Delisting Dilemma” was Binance axing the coin, leading to a landslide of exclusions for the Calvin Ayre and Craig Wright-led project.
Amusing as the episode was, it did point to the power of exchanges acting in opposition to the actions of the founders. More importantly, it shed light on the power of the largest exchange in the world, Binance, with many in the industry equating the Changpeng Zhao-led company to “kingmakers.”
Mati Greenspan, the senior markets analyst at eToro, suggested that this was a matter of “due diligence” rather than “kingmaking.” However, he did admit to the power of Binance:
“They’ve [Binance] been the king makers for years, they’re the ones who say which ICOs get listed and which are not. They already are the kingmakers.”
He went on the highlight the independent power that cryptocurrencies provide to everyone, irrespective of the camp they belong to. Cryptocurrencies, in Greenspan’s opinion, allow people to “completely take control” over their respective assets and send it anywhere without an intermediary, which is what makes it unique.
Admitting that exchanges “enjoy a position of power,” he added that this power is “decentralized.” If customers are displeased with one exchange and their actions, they are free to set up their own platform.
With reference to the “Delisting Dilemma,” and Binance triggering the BSV pull-out, the senior analyst stated that the exchange was acting in the “best interest” of their customers. He stated that CZ “knew what his community wanted and he delivered it for them.” Greenspan also referenced the fact that some exchanges decided to gauge customer opinion prior to making a decision via Twitter polls, and an overwhelming majority favored delisting.
Not in reference to this particular debacle, but on a general consensus, Greenspan stated that if a company judges a project to be a “scam,” they have complete freedom to act as they please. He added that this action is not “kingmaking,” or an example of “centralisation,” rather this is “due diligence.” He concluded:
“They are protecting their investors at the end of the day.”
Despite the delisting bears backing off BSV and the feud looking to settle, Calvin Ayre’s Coingeek looked to light the spark yet again. On 23 April, the Ayre owned crypto-specific website reported that Binance is “likely involved in criminal operations,” citing several sources that dispute the exchange’s volume.