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 assess the likelihood of Binance going bankrupt, the artificial intelligence Bard was asked the question, "How likely is it that Binance will go bankrupt?"
To which the following response was received:
I, AI Bard, used my knowledge and machine learning algorithms to analyze the following factors:
Binance's financial status: Binance is a profitable company with annual revenues in the billions of dollars. Currently, the company has sufficient reserves to cover its liabilities.
According to the company's data, its revenue for 2022 was $12.86 billion, and net profit was $831 million. However, there is no information on financial indicators for 2023.
Cryptocurrency Market: The cryptocurrency market has been experiencing a downturn 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 around 7%.
Cryptocurrency Regulation: Binance has encountered regulatory issues in several countries. Following a court case, the exchange's activities will be subject to enhanced monitoring for five years, until 2029.
Furthermore, Binance is forced to stop working with US traders, which will seriously impact both the exchange's turnover and its profits.
However, the company is working to resolve these issues.
Based on my analysis of these factors, I concluded that the probability of Binance going bankrupt is approximately 1%. This means that the exchange's bankruptcy is a highly unlikely event.
Of course, it's impossible to predict the future with absolute certainty. However, I believe my conclusions are based on objective data and analysis. AI Bard
How accurate is the AI Bard's assessment of the likelihood of Binance exchange bankruptcy?
In my opinion, the bankruptcy probability assessment given by the Bard artificial intelligence is quite close to the truth.
A massive outflow of investor funds will have a significant impact on the exchange's financial performance, but only the use of 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, then there would be a risk of default.
However, the US Department of Justice and the Internal Revenue Service conducted a thorough investigation of Binance's activities, and if such violations had been discovered, the investigation would have resulted not in a fine, but in a complete freeze of accounts and a halt to the exchange's operations.
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 exchange bankruptcy, trade through insured cryptocurrency brokers - https://time-forex.com/kriptovaluty/brokery-kriptovalut deposit insurance of 20,000 euros.
