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