The post How Binance looks well-set to navigate post-CZ era appeared on BitcoinEthereumNews.com.

Despite outflows, liquidity on the exchange wasn’t significantly impacted. Binance’s troubles allowed entities like Bybit and Coinbase to expand their market. One of the largest Web3 ecosystems, Binance [BNB], settled its legal disputes with the U.S government last week by agreeing to pay a $4 billion penalty and undertaking measures that improve its compliance with the local laws. The event also resulted in the exit of former CEO and one of the most popular faces in the industry – Changpeng Zhao (CZ). While these events did create panic, there was no evidence of a damaging impact on the market’s near-term prospects at the time of publishing. In fact, market bellwether Bitcoin [BTC] scaled the $38,000-level since these developments went public, AMBCrypto observed using CoinMarketCap’s data. The continuation of bullish momentum implied that the most anticipated event in the market – the approval of spot Bitcoin ETF applications by the U.S. Securities and Exchange Commission (SEC) – wasn’t in danger. This was illustrated in a recent report by crypto market data provider Kaiko. Binance seems OK As far as Binance’s own empire was concerned, the crypto behemoth did witness an exodus of funds as the news went public. As per AMBCrypto’s scrutiny of DeFiLlama’s data, $2.74 billion in net outflows were recorded since 20th November. This was the day when news of the resolution was first reported by Bloomberg. Source: DeFiLlama However, by no means did this result in an acute liquidity shortage on Binance, evidences put forward by Kaiko showed. Spreads for top BTC pairs on the exchange have dropped significantly after spiking in the initial days of the episode. Source: Kaiko As one would expect, an exchange spread is the difference between the price the seller is asking, and what the buyer is willing to pay. Typically, an asset…

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Filed under: News - @ December 1, 2023 8:12 pm