Dogecoin founder Shibetoshi Nakamoto believes that the potential collapse of cryptocurrency exchange or stablecoin issuer Binance Tether could severely destabilize the entire crypto industry.

He also advised people to do proper research and understand the specifics of the digital asset sector before entering into it.

The collapse of Tether or Binance could be devastating for the crypto industry:

Dogecoin co-founder Billy Marcus (better known as Shibetoshi Nakamoto) believes that if Binance or Tether crashes, it could lead to the end of the crypto market.

The American software engineer also explained that more and more people have recognized that over-centralization is a major weakness.

Former Twitter CEO Jack Dorsey was among the individuals who agreed with Marcus’ hypothesis.

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He said such a potential collapse would undoubtedly be game over.

However, the founder of DOGE believes that the potential reverse event will not mean the death of cryptocurrencies but will lead to a major crash in the major market.

Almost every turmoil in the past, including the recent fiasco with FTX, has led to sharp market declines and panic among cryptocurrency participants.

The uncertainty also caused pundits to declare bitcoin dead.

Despite being killed over 460 times, the underlying cryptocurrency is still around and continues to expand its presence across the globe.

It has even become legal tender in struggling economies such as El Salvador and the Central African Republic, while many investors view the asset as a hedge against inflation due to limited supply.

How was Binance affected by the FTX crash?

Some market participants expected the FTX crisis to cause a domino effect and drag other trading platforms into the mud.

The largest cryptocurrency exchange Binance confirmed that its balance sheet is stable and even raised the Safe Asset Fund for Users (SAFU) to $1 billion to protect clients in case of an emergency.

Read:Seizures of $ 2.3 million destined for money laundering and transfer of cash to Bitcoin in New York

In addition, the company has introduced a recovery fund that can help struggling crypto projects during turbulent times.

To further minimize the negative cascading effects of FTX, Binance is forming an industry recovery fund to help hard-pressed projects.

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