Binance recently suffered a major $6.3 billion hack, the largest in the history of the cryptocurrency industry. As expected, the incident sent shockwaves through the sector, and Bitcoin (BTC) and altcoins headed south.
However, the losses proved far less severe than many would have expected, with the market even rebounding after Binance showed it could handle the situation by restoring withdrawals and covering the damage through its SAFU fund and its own reserves. But what would happen to the cryptocurrencies if the behemoth filed for bankruptcy and no longer operated? Here’s what three of the most popular AI-powered chatbots said on the matter.
Major Catastrophe?
ChatGPT said a disorderly Binance collapse could push BTC down 30-50% from its pre-event price, while many altcoins could crash up to 80%. It explained that such a meltdown would trigger two shocks at once: people selling in a panic and fewer firms and individuals able to buy.
“Bitcoin would most likely fall because it is easier to sell than smaller assets. A trading firm with money trapped on Binance might sell Bitcoin held elsewhere to meet obligations. The first wave would therefore hit even assets with no direct Binance exposure.”
According to ChatGPT, the most affected token in a crisis like that would be BNB. The chatbot estimated that it could lose up to 95% of its value since it is used for network fees and staking within the ecosystem.
OpenAI’s platform explained that such a black swan event would probably have a huge impact on the entire industry, making it smaller, more fragmented, and more demanding about custody.
“The immediate winners would likely be platforms already offering deep liquidity, reliable withdrawals, and institutional access. Activity would migrate unevenly across countries. Independent custody and arrangements that let firms trade without depositing their entire balance with an exchange would become more attractive. Some users would prefer keeping control of their assets, although smart-contract failures, liquidation risks, and centralized infrastructure would remain,” it stated.
In conclusion, ChatGPT said BTC would have a better chance to recover after the calamity than the average altcoin, while surviving exchanges could eventually replace Binance’s trading capacity.
Perplexity said that if Binance went bankrupt, the crypto market would likely face a severe, short-term liquidity and confidence shock, probably worse than FTX’s collapse in 2022.
“Bitcoin, Ether, BNB, and especially smaller altcoins would likely sell off as traders rush to exit through other venues. BNB would be particularly exposed because it is closely tied to Binance’s ecosystem,” it stated.
The chatbot claimed that in a bad scenario, assets on the exchange could be frozen for years while creditors, regulators, and courts sort out claims.
Gemini’s Outlook
Google’s AI-powered chatbot noted that Binance remains the biggest crypto exchange and, as such, its sudden collapse could trigger a price crash of around 65% for BTC and up to 90% for the top altcoins.
It said the primary cryptocurrency would hold up better due to its institutional adoption. Financial giants like BlackRock, Fidelity, Invesco, Franklin Templeton, and others have launched spot BTC ETFs over the past few years, and their cumulative net inflows have surpassed $56.5 billion.
Moreover, Gemini claimed that a Binance meltdown would end “the mega-exchange era,” suggesting no single platform would ever be allowed to capture 30%+ of global market share again.
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