Too big too fail doesn't exist in crypto

Please double check what's going on with Binance / CZ if you are heavily invested especially in BNB. The exchange token is sitting on a lot of air coming from a +2400% spike in a matter of weeks during the 2021 early bull run.

Binance didn’t meet its 1:1 ratio of reserves to customer assets. In U.S. dollar terms, based on bitcoin’s price at the time, the liabilities would have been about $9.68 billion, while the assets would have been $9.43 billion, or about $245 million smaller. They dodge further questions and decline any critism saying user funds are SAFU.

Binance being investigated for possible money laundering

But what would happen if Binance had a shortfall? The company in a Nov. 9 news release pointed to an “emergency insurance fund” it said it established in 2018, called the “secure asset fund for users,” or SAFU for short. The company said, “We’ve topped the SAFU balance back to” $1 billion.

Binance said the fund consisted of a combination of bitcoin and two tokens created by the company—one called Binance USD and another called BNB. Binance hasn’t released financial statements for the fund showing its assets and liabilities, but it says on its website “the value of the fund will fluctuate based on the market.”

Or in other words - it's not $1 billion lol

"fluctuate based on the market" means when things look rough and they need those funds things are most likely already going down. Guess what happens when they liquidate BNB & BTC holdings while user liquidate their BNB / BTC holdings IN THE MIDDLE of an already falling market?Surely not a domino effect and suddenly those $1 Billion "fluctuated" into a way lower value. Don't trust - verify. There's nothing bad about a mass withdrawal hitting any exchange. None of them should be worried nor take any damage. In fact it would probably even benefit them because it'll make them look super trust worthy in current times. Some exchanges even help out their customers setting up withdrawals to own wallets.

Or maybe I'm completely wrong, BNB with the current market cap worth 13.6% of BTC and more than USDC continues to grow so massive it get's close to ETH. Maybe Binance will become the greatest exchange and is doing everything right and I'm just a fudder.

But if I saved someone with this post similar to FTX then I don't mind the downvotes for saying NOT YOUR KEYS NOT YOUR COINS