In this video, we’ll be discussing the possibility of Binance becoming the next Mt. Gox – a notorious Bitcoin exchange that went bankrupt in 2014.
First, let’s take a look at the history of Mt. Gox. Mt. Gox was once the largest Bitcoin exchange in the world, processing more than 70% of all Bitcoin transactions. The exchange was founded in 2010 and quickly grew to become the de facto standard for Bitcoin trading.
However, in 2014, Mt. Gox suddenly went offline and filed for bankruptcy, leaving its customers with massive losses. It was later revealed that the exchange had been hacked and had lost over 850,000 Bitcoin – worth around $450 million at the time.
Now, we’re seeing many of the same signs with Binance. The exchange has experienced explosive growth in the past few years, and currently holds the title of the largest cryptocurrency exchange in the world. It processes more than $1.5 billion in trades every day.
However, Binance has also been the target of numerous hacks in the past year. Just last week, the exchange was hacked for 7,000 Bitcoin – worth over $40 million. And in April 2019, the exchange was hacked for over $40 million in Bitcoin and Ethereum.
Despite Binance’s impressive growth, the exchange is still not immune to the same dangers that plagued Mt. Gox. If Binance doesn’t take the necessary steps to protect its customers and prevent further hacks, then it could end up going the same way as Mt. Gox.
