In the case of Binancethe most recognized site in the world for these operations, its users withdrew about $1.35 billion in bitcoins, after the collapse of FTX, according to the specialized media CoinDesk.
Both Binance and other platforms such as Crypto.com sought to calm down by making statements that detail the management of your assets, and assuring their customers that they did not have to worry about their use.
Nevertheless, the run persisted and the reserves in them of bitcoin, ether and “stablecoins”, fell to the lowest levels since 2018, according to data from the analytical firm CryptoQuant collected by the Bloomberg agency.
According to specialists, several of these platforms failed in their attempts at transparency, because their reports omit their liabilities and they were not externally audited either, in addition to the mere mention of their reserve amounts they only offer a “photo” of a moment.
After questions in this regard, Binance promised to publish a full, audited report of its assets and liabilities in the coming weeks.
For his part, the CEO of Bybit, Ben Zhouhe asked the industry this week “collaborate together and help reassure customers and governments“. Only a complete audit would restore confidence, say industry analysts.
They also claim that the Most of these platforms operate simultaneously as brokers, custodians and exchange spaces, therefore, the collapse of a platform can easily spread in effect domino to the rest, Contrary to the traditional financial sector where these functions are usually distributed among different firms, which are also regulated, many of them operating publicly on the stock market.
The FTX collapse offered proof of this: The British platform Quantia this week halted the withdrawal of funds due to its exposure to the fallen firm.
The same thing happened with Genesisone of the oldest crypto platforms, which launched last Wednesday s temporarily suspend withdrawals and new loan issuances in cryptocurrencies due to “abnormal withdrawal requests”. That same day the bag Gemini limited withdrawals from its “Earn” program while lender BlockFi, also exposed to FTX, has turned off the withdrawal spigot and could file for bankruptcy in the coming days.
Similarly, the French Coinhouse -who has Genesis among its associates- bHe blocked his withdrawals on Thursday arguing “global tensions in the market and pressure on liquidity”, as reported by the AFP news agency.
“It is very disturbing, because we have not yet seen the dimension of the contagion,” warned FMelpignanoCEO of Kadena Eco, specialized in blockchain.
Only time will tell if the crisis in the sector will lead to its collapse or new regulations.
various specialists compared the situation with the 2008 financial crisis and the collapse of Lehman Brothers banka recession that led to the establishment of currency safeguards in the US financial system to prevent new recurrences.
“The cryptocurrency market does not have many of the protections of the traditional market structure, and many of its recent problems are rooted in a lack of transparency. One wonders how much could have been avoided if there had been better protections,” he said. anish puaara specialist at the exchange firm Optiver.
Source: Ambito
I am a 24-year-old writer and journalist who has been working in the news industry for the past two years. I write primarily about market news, so if you’re looking for insights into what’s going on in the stock market or economic indicators, you’ve come to the right place. I also dabble in writing articles on lifestyle trends and pop culture news.
