11/16/2023 0 Comments Binance ceo stepping downUnder the scrutinizing eyes of financial regulators, Binance.US has found itself grappling with a relentless barrage of challenges. Regulatory Onslaught: A Catalyst for Change Now, let’s pull back the curtain on what led to this corporate upheaval and the challenges facing Binance.US. The company has recently culled about a third of its workforce, equating to a staggering 100 jobs.Īdding to this grim tally is the surprising exit of its President and CEO, Brian Shroder. The storm clouds hanging over Binance.US, the renowned American subsidiary of the global crypto behemoth, have darkened. The Securities and Exchange Commission (SEC) has targeted the crypto exchange with aggressive regulatory actions, leading to layoffs.Binance.US, the American arm of the global crypto platform, faces major challenges, with 100 job cuts and the departure of its CEO, Brian Shroder.The milder revenue decline seen at FTX through October suggests it has gained market share while Binance has been among those losing it, but the real test of confidence for each exchange will come to light in the coming months as the most active accounts decide where they will conduct most of their trading. ![]() Conceivably, the real audience of CZ’s comments were the firm’s derivatives customers who might have been moving substantial business to rival exchanges. The value of any of these tokens outside of their native exchanges is closely tied to the trust in the issuers.įorbes research has found that much activity–more than 50% at major exchanges-comes back to the top 10 large institutional firms that trade actively and in size, usually via derivatives. From a strategic perspective, the CZ announcement undermines both FTT as well as Alameda Research, a separate but affiliated firm that uses the FTX token to provide market liquidity to other exchanges and crypto projects in similar ways that Binance does with its BUSD or BNB BNB tokens. To our knowledge, up until now there has been no open sign of animosity between CZ and Bankman-Fried but today’s Twitter scene sizzled between these two and seems poised to get louder. In recent weeks, a number of posts from bloggers friendly to Binance have put down FTX’s lobbying activities and FTT utility. For example, FTX’s position on the main crypto exchange ranking list maintained by Binance-owned was consistently lower while Binance had a FTX stake than after it divested.Īdded to the Binance CEO’s weekend tweet is a post broadcasting the allegations that FTT is illiquid and a separate one at. Since Binance divested its FTX stake in August 2021, it may have been subtly exerting influence over its former investment. Forbes calculates that Binance stopped earning the equivalent of $3 billion annually starting in June when it removed fees for spot bitcoin trading. Binance revenue drops were widespread, with decreases of 57% in derivatives and 86% in spot. ![]() ![]() Unlike FTX, Binance didn’t raise outside capital and now finds itself with fewer funding options and more overhead resulting from hires needed to support its launch of regulated entities in the Middle East and Europe. Chart of FTX, OTX, Upbit, and Huobi monthly revenue estimates by Forbes Forbesįorbes estimates show that FTX and its affiliate FTX.US have seen their revenue fall by 52% and 57% respectively, in the 12 months through October, a less severe decline than the overall market’s 61%.
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