Binance: Crypto exchange could land on a fuda

Before SBF and FTX fell out of favor, Fud (fear, uncertainty and doubt) was the most hated acronym in cryptocurrencies. Changpeng Zhao, managing director of the Krypto exchange Binance, once warned people that mere reading about Fuden would probably make them poorer.

cz, as it is called, has become thoughtful because the crypto prices have fallen. Fud had triggered a "stress test", he said. Binance had to accept drains of 1 billion USD on Tuesday. CZ says that payments cannot destabilize its business. Brave.

Depressions of Binance are part of a wider escape from cryptocurrencies in the middle of falling prices. The company also has to struggle with special problems. This week it was reported that the stock exchange is imminent for compliance with the US money laundering and sanction laws. In Great Britain, the Financial Conduct Authority warned last year that it was "unable" to supervise Binance. Many large banks set the transfer of money.

Binance is too mysterious to simply weigh it down. Binance says that it has crypto-assets worth $ 60 billion. This is pointless without liabilities.

It seems to be the largest platform for the crypto trade, although the statistics cannot be verified. According to the Coingecko Coingecko, $ 35 billion in the last 24 hours, compared to $ 1.3 billion for the coin base noted in the USA.

At the end of October, the trading volume on FTX is said to be more than $ 17 billion. If Binance could conquer a fraction of it, its dominance would be unassailable

The hostility of the regulatory authorities and the collapse of FTX should, however, be all off. "People are injured by an exchange and they generalize this," complains CZ.

It is quite reasonable to believe that connections between crypto companies lead to systemic weakness. Terraform Labs crashed at the beginning of this year. Blockfi was then in trouble, but was saved by FTX. FTX broke later and Blockfi followed this example.

You don't have to be a crypto genius if there are some to connect the points.