For ordinary traders of the exchange almost nothing has changed, which creates a dangerous illusion of non-seriousness of what is happening. At the same time, for professional participants dramatic consequences of this situation are already obvious
▪️First, just a week the exchange lost 16% of the market share. ▪️Vo. Secondly, we see an increase in the average withdrawal volume indicator by 5 times. Yes, we don't see sharp outflows, but what's worse, we see a dangerous trend ▪️Third, Binance's liquidity level has updated a two-year low, indicating a mass exodus of professional participants
How dangerous is this?
The main thing Binance has been accused of is working illegally with U.S. customers. Since spring 2021, when China banned crypto, Binance's average daily volume distribution has clearly shifted in favor of the U.S. session
But the scary part is not that they are guilty, but that Binance's main market makers, which have enabled them to achieve such liquidity superiority, are based in America
If they decide to leave now, reducing risks (and the data points to exactly that), there will be less and less liquidity on the exchange, and less liquidity = less attractiveness for institutional investors. Fewer institutions = less liquidity.
As you can see, this is very dangerous.
I recommend to take some time and register on other exchanges, but hold main of you asset in cold wallet:
MEXC (The largest leverage in the market) ByBit (Exchange #2 in crypto futures trading ) Bitget (Huge deposit and withdrawal limits without verification) Huobi (Best conditions for institutional traders) BringX (Futures, stocks, commodities, FX)
Best regards EXCAVO
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Bloomberg named the anonymous VIP-clients of Binance. According to the publication, they are the world's largest algorithmic traders - Jane Street Group, Tower Research Capital and Radix Trading. The Binance service provided preferential transaction fees and faster access to trading in exchange for providing liquidity. The platform also promised such customers "prompt notification of any law enforcement investigation into their account," assistance in circumventing KYC rules and its own restrictions.
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Binance has been sued in the United States for running promotional campaigns to sell unregistered securities resulting in HKEX:1 billion in losses.