Artificial intelligence Bard assessed the likelihood of bankruptcy of the Binance exchange
Recently, there have been many reports in the media about the possible bankruptcy of the largest cryptocurrency exchange, Binance.
These messages have caused concern among investors about their funds, which will be frozen in the event of an unfavorable scenario.
The basis for anxiety and panic was a series of unpleasant events. First there was the fall of the cryptocurrency market, after the ban on the issuance of BUSD stablecoins and the departure from Russia, then a lawsuit against the exchange for not complying with international anti-money laundering rules.
As a result, Binance must pay a fine of $4.3 billion, and its head Changpeng Zhao must resign as CEO.
To estimate the likelihood of Binance going bankrupt, Bard AI was asked the question, “How likely is the Binance exchange to go bankrupt?”
To which the following response was received:
I AI Bard used my knowledge and machine learning algorithms and analyzed the following factors:
Binance Financial Status: Binance is a profitable company with an annual turnover of several billion dollars. Today the company has sufficient reserves to cover its obligations.
According to the company, for 2022 its revenue was $12.86 billion, and its net profit was $831 million. However, there is no information on financial indicators for 2023.
Cryptocurrency Market: The cryptocurrency market has been experiencing a decline in recent months. However, Binance is one of the most resilient exchanges to market volatility .
According to CoinMarketCap, Binance's share of total cryptocurrency trading volume is about 7%.
Cryptocurrency Regulation: Binance has faced regulatory issues in some countries. After the trial, the activities of the exchange will be subject to enhanced monitoring for 5 years, that is, until 2029.
In addition, Binance is forced to refuse to work with traders from the United States, and this will seriously affect both the turnover of the exchange and the profit it receives.
However, the company is working to solve these problems.
Based on an analysis of these factors, I concluded that the probability of Binance going bankrupt is about 1%. This means that the bankruptcy of the exchange is an unlikely event.
Of course, it is impossible to predict the future with absolute certainty. However, I believe that my conclusions are based on objective data and analysis. AI Bard
How accurate is the assessment of the probability of bankruptcy of the Binance exchange from AI Bard?
In my opinion, the Bard artificial intelligence estimate of the probability of bankruptcy is quite close to the truth.
A massive outflow of investor funds will hit the financial performance of the exchange quite painfully, but only the fact of using client funds in other projects can lead to bankruptcy.
That is, if the company’s management withdrew investors’ funds and invested them in third-party projects, in this case there would be a risk of non-fulfillment of obligations.
But the Department of Justice and the US Internal Revenue Service conducted a thorough audit of Binance’s activities, and if such violations had been identified, the investigation would not have ended with a fine, but with a complete freeze of accounts and a shutdown of the exchange.
Since this did not happen, Binance will most likely survive the troubles, but will no longer be the largest cryptocurrency exchange.
To completely eliminate financial losses as a result of the bankruptcy of the exchange, trade through insured cryptocurrency brokers - https://time-forex.com/kriptovaluty/brokery-kriptovalut deposit insurance in the amount of 20,000 euros.