Binance value comes from servicing those niche projects - it’s an exchange. As long as those niche projects exist, new projects will emerge to service demand. What will change is design; future exchanges will be less regulatable. Already dexes are waiting in the wings; UNI has been in a price uptrend due to these decisions.
A smarter strategy would be to do what the US Justice dept is doing; co-opt the biggest players, install plants, and cut down any upstarts. Government enforced monopolies have worked for hundreds of years as an effective way to control industries.
All of that's assuming that demand will continue. What this will do is remove crypto from the mainstream. And without paid celebrity endorsements, where will the new dumb money inflow come from? And if that dries up, how will the mining rigs pay their electricity bills?
A lot of people use crypto for utility, which is why it doesn’t go to zero in bear markets. Not everyone needs or wants crypto tokens, but those that do form the base of the ecosystem. You can call it dumb money if you want to be elitist, but it’s the same so called dumb as any consumer activity.
A smarter strategy would be to do what the US Justice dept is doing; co-opt the biggest players, install plants, and cut down any upstarts. Government enforced monopolies have worked for hundreds of years as an effective way to control industries.