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· Posted on
February 21, 2024

Binance soars to new, centralised heights after FTX's crypto plane crash

Binance, the largest exchange, has taken its largest share of trading cryptos.

What's the key learning?

  • Binance has taken the largest share of trading cryptos, having hosted 55% of the whole world's buying and selling in January.
  • Cryptocurrency is built on the principles of decentralisation, but, we're starting to see a growing concentration of power among a few players.
  • Having all your eggs in one basket is never a good idea because if that basket drops, it could have far-reaching consequences for the industry as a whole again.

👉 Background: When it comes to crypto exchanges, there are a couple of serious players… There’s Binance, Coinbase, Kraken and then of course there was the late FTX.

👉 What happened: And now, it’s come out that Binance, which is the largest exchange, has taken its largest share of trading cryptos. It hosted 55% of the whole world’s buying and selling in January.

👉 What else: Just to put that into perspective, Coinbase was second with just under 8% of the trading. And it just looks like more and more of the crypto trading is becoming centralised in the one spot.

What's the key learning?

💡 Cryptocurrency is built on the principles of decentralisation, but, we're starting to see a growing concentration of power among a few players.

💡it seems like the majority of digital moolah is transaction via one giant basket (cue Binance). And let's be real, having all your eggs in one basket is never a good idea. If that basket drops (FTX, we're looking at you), it could have far-reaching consequences for the industry as a whole… again.

💡 And it’s not out of the realms of possibility.  We know that Binance still hasn’t provided a proper audit of its reserves and liabilities to the public. Yikes.

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