If you buy a Trezor and from an exchange withdraw cryptos via BNB chain (as it’s really low gas fees) with the help of metamask onto a Trezor hardware wallet, then if Binance go bankrupt, will BNB chain go down and you lose all your coins/tokens? because if it’s a pegged coins/tokens that you’re getting via bep20 then I was thinking maybe there wouldn’t be any of the original tokens/coins to retrieve.
I hope I made any sense
Hello @sc284 and welcome
From what I understand of your question the main concern is that the tokens you were holding on BSC or BNB chain will stop working on these chains. But continue to work on their native blockchains.
But if Binance goes bankrupt maybe this will be your main concern.
If Binance goes bankrupt I think the whole market will crash by a lot… lets hope it doesn’t get to this
I personally wouldn’t use these networks as they are Ethereum side-chains and they are not decentralized as e.g. Ethereum network itself because they use set of validators (that are responsible for securing the network by processing transactions and signing blocks) instead of independent nodes.
Also, there is this statement however you should ideally follow zero trust principles
Thanks, my concern is that if you use Biannce BNB Chain BEP20 to transfer any tokens to Trezor will you be able to hold onto them even if Binance go bankrupt, will one can then transfer them to another exchange or use them somewhere else?
It’s like if you were back in 2013 and holding cryptos in your hardware wallet (if you could), instead of Mt. Gox, then you would still have them all.
i Think whatever happens on anychain affects every holder
With Trezor you have your cryptocurrencies in non-custodial wallet (private keys are always securely kept offline on the device).
And Private key is the ultimate proof of ownership since all pub keys/addresses are mathematically derived from it. So if it comes down to it you can always prove that you are an owner of certain address (as you hold the appropriate private key).
The question (that I don’t have knowledgeable answer for) is if it will still be possible to execute the transactions even on the network operated by the set of validators after the authority (read Binance) shuts down.
A crucial factor is also whether the exchange has collateral with which it can (and will want to) eventually compensate its users (not to mention how the event itself can swing the value of a given cryptocurrency).
So again, the best approach in my opinion is to use only decentralized and trustworthy networks altogether with hardware wallets such as Trezor.