After FTX-Binance deal, Binance can control over 80% of the global crypto market November 10, 2022
After FTX-Binance deal, Binance can control over 80% of the global crypto market <BR><BR>
After FTX-Binance deal, Binance can control over 80% of the global crypto market
With the decision to acquire fellow Bahamian cryptocurrency exchange firm, FTX, and by saving it from the recent liquidity crunch, Binance would be benefited in multiple ways, not just by gaining a major portion of the trading platform’s holdings but by even more.
According to market experts, the FTX and Binance combined can give the latter an 80% share of the global crypto market.
Regulatory eye on Binance
This development in the crypto ecosystem would attract much attention from regulators or maybe intervention. FTX has invested in multiple firms around the world, if the firms are from the United States and Europe the FTX-Binance deal might become their first target.
The deal has been the only talk of the town for the last couple of days, and many have set their hopes high for the same, however, if, by any chance the agreement didn’t work out the way it is expected, it will be bearish for the entire crypto industry.
One of the digital asset industry enthusiasts tweeted, “The question that might come immediately next is where users can store their funds now, given that one of the largest CEXs can go bankrupt and lose user funds. All the smaller CEXs might be seeing their user exodus soon.”
Peak Blockchain analyst Harsh Agarwal opined, “Binance’s acquisition of FTX will create a monopoly in this nascent industry. However, history is evident that multiple industry giants from Mt. Gox to FTX have failed in this decade due to their opaqueness against transparency and minimum regulatory cover.”
To avoid such implications, according to experts, Binance must investigate any possibility of loose ends or shortcomings relating to customer funds and if so, there are any “wrongdoings from the diversion of customer funds to related parties or unauthorized purposes.”
If anyhow, FTX’s finances show inconsistencies, it would suggest that “Binance would acquire FTX as a fire sale, by making whole the customers,” which would lead to investors bringing into question the legality of FTX’s conduct, the note stressed.
Any problematic situation in FX’s balance sheet could result in an “extremely disastrous outcome for investors,” report analysts.
The global cryptocurrency market cap now stands at $0.89T, down by -9.58% over the last day, according to CoinMarketCap data. Bitcoin (BTC) has been trading between $17,200 and $20,693 over the past 24 hours. As of 09:00 AM (UTC) today, BTC is trading at $18,133, down by -8.09%. Most major cryptocurrencies by market cap are trading mixed. Market outperformers include TWT, PAXG, and TRX, up by 3%, 3%, and 1%, respectively.