Experts Fault FTX, As Binance Prepare For Cryptocurrency Winter
The cryptocurrency winter is here again, and many stakeholders and traders alike are getting ready for this session. Reports gathered from many quarters, especially in the United States, say that cryptocurrency companies are equally working towards making it the most significant for their customers. These companies are said to have started working on packages guaranteeing that their customers don’t experience much loss during this bearish season.
Unfortunately, this year’s crypto winter is coming at a time when the crypto community is experiencing the loss of major cryptocurrency banks, which also affected some of the deposited customer funds. Information from various sources says that not many are familiar with this trend.
Investigations into the reason behind the naive understanding of this significant event in the cryptocurrency industry were related to the recent unfortunate event between the FTX and the Feds, which also left many cryptocurrency enthusiasts thinking that the term “crypto winter” is s new phenomenon.
It was also uncovered in the cause of this writing that the crypto winter has dealt with most firms in the past. Some of the known ones we can gather so far are Three Arrows Capital, Hodlnaut, and Digital. Further reach reveals other high-profile investors that fell victim to this event.
Binance Wades In, Gets Ready For The Bear
The revelation from the CEO of Binance didn’t give much hope to the average cryptocurrency stakeholder. According to Binance CEO and Founder Changpeng Zhao, this bearish season may last three years. Zhao assured customers that his company was working on creating a safe spot during these troubled times.
While debating on the assurance by the Binance CEO, analysts have waded into this conversation. They believe that as skeptical as the market can be at this time, it is hard to know who to trust; Binance as a company has always shown great strength in stormy economic times. Meanwhile, many analytical pieces have somehow confided in Binance’s ability to guide the industry through these turbulent times.
Some evidential facts about Binance’s abilities to withstand these coming challenging times are evident in its published market performance. According to this piece, Binance had s market share of 76.4% in January 2023. This was a considerable increase from its previous 48.7% recorded in the Q1 of 2022. These reports also named the company one of the few (crypto companies) that survived in 2022, which was known as one of the worse years for the cryptocurrency industry.
More Evidence of Binance Readiness And The FTX Connection
Binance has been known to have survived the worse market shake-ups. Details taken from their previous performance record have shown that they were one of the very few cryptocurrency companies that didn’t have a job cut after 2022. Documents from this period show that, at most, five thousand employees from different cryptocurrency firms were relieved of their jobs in 2022.
Even with all the strong evidence that proves Binance’s capabilities to handle the incoming storm, some stakeholders still have doubts. This is understandable, considering the FTX scenario. In a random vox populi conducted on this story, many stakeholders in the industry still take reference from FTX. They fear that the circumstances that led to the collapse of FTX, despite ranking in the third position in the world’s biggest cryptocurrency firm category, may resurface.
They fear that Binance might have a repeat of FTX hence, leaving another hole in the entire crypto ecosystem. Nevertheless, as big as Binance may be, they are not the only cryptocurrency company with a substantial market share – but Binance has undoubtedly made a mark for itself in a report compiled by CryptoCompare, which revealed that Binance was smog very few companies that initiated a fee-free trading policy in July.
On the other hand, analysts believe that the cryptocurrency winter period won’t be an easy process for Binance, even with all its potential to withstand it. They said this, stressing out its initial rumble with the United States Securities and Exchange Commission earlier this year when there were instructed to halt the minting of the BUSD.
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