Mediaboss Marketing

(Bloomberg) -- Crypto exchanges Huobi and OKX benefited after rival Binance curbed a zero-fee promotion and shed market share in the spot trading of digital assets, according to data from research company Kaiko.

Most Read from Bloomberg

Binances share of spot-trading volumes fell to 51% by May 6 from 73% just before the popular promotion was mostly scrapped on March 22. Huobis hit 10% from 2% and OKXs 9% from 5%. South Korean platforms also saw their share increase, to almost 14% from a little under 8%, the Kaiko figures show.

The shakeup could pose another challenge for Binances founder Changpeng Zhao. His business faces intensifying regulatory heat, particularly in the US.

The US crackdown has led to users worrying about the safety of their funds and thats the reason they are diversifying into other centralized exchanges, said Cici Lu, founder of Venn Link Partners, a blockchain adviser.

Zhao has repeatedly taken to Twitter to say customer funds are safe. Trust in the digital-asset sector is low after last years crypto rout and FTXs blowup.

A Binance spokesperson said the drop in market share isnt as great as some of their modeling had projected, adding our primary objective right now is to mature our existing products and services and continue investing in our compliance processes to prepare for a new era of regulatory certainty.

While cryptoassets have made a partial recovery in 2023 from a $2 trillion rout, volumes and liquidity remain depressed after investors fled the sector.

Most Read from Bloomberg Businessweek

2023 Bloomberg L.P.

Read the original post:

Drop in Binance's Crypto Dominance Boosts Rival Exchanges Huobi and OKX - Yahoo Finance

Binance trading volumes and liquidity have been steadily declining in the first quarter of 2023 amid the spate of U.S. banking failures and after ending its zero-fee promotion.

The result?

Its led to even more chop for the price of Bitcoin, Kaiko analyst Dessislava Aubert told Decrypt.

Aubert said that "Overall, Bitcoin liquidity on Binance has more than halved relative to the start of February from around $45 million to $16 million in early May."

The primary reason for the decline in liquidity was the removal of Binances 10-month zero-fee promotion for 13 different BTC pairs, which also caused market makers to leave the platform.

Specifically, monthly trading volumes for the exchanges most-traded pair, BTC-USDT, volume fell from $16 billion in March to $2 billion in April, said the Kaiko analyst.

Aubert added that the drying liquidity has been more pronounced after the spate of banking failures earlier this year. The collapse of two key on-ramps for the industry in Silvergate and Silicon Valley Bank also hit specific firms, including Ripple, Circle, Yuga Labs, and many others.

Bitcoin market liquidity and trading volume on Binance. Source: Kaiko.

The 1% market depth, a measure of liquidity calculated using the bids and asks within 1% of the mid-price, on Binance declined significantly after the banking failures.

The result of reduced liquidity and volumes on Binance has been increased volatility.

Kaikos intraday volatility metric for the 10-minute interval surged considerably around the time liquidity began dropping on Binance.

Bitcoin intraday volatility at 10-minute intervals. Source: Kaiko.

Low-liquidity conditions mean thin order books on exchanges which provide room for wild price swings from large orders.

We have seen this with BTC's recent sudden price move which did not have a clear catalyst, said Aubert. Volatility is unlikely to go away especially after some larger market makers (Jane Street and Jump Crypto) revealed they were reducing down their crypto exposure.

Notably, Bitcoins price dropped this week despite favorable conditions such as a positive CPI report and market expectations largely inclined toward an interest rate cut in the future by the U.S. Federal Reserve.

A low-interest rate environment enables cheaper debt in the economy which fuels a rise in speculative assets like Bitcoin.

However, the asset failed to stage an uptrend likely due to poor liquidity.

More:

Bitcoin Liquidity on Binance Has More Than Halved Since February: Kaiko - Decrypt

Binance disclosed its plans to discontinue trading for the XRP leveraged tokens earlier, revealing that the development will occur today.

Binance has discontinued trading for XRPUP and XRPDOWN two XRP leveraged tokens today. The leading crypto exchange earlier announced plans to cease trading for the leveraged tokens against USDT, noting that the move will be implemented on May 12.

In accordance with the prior announcement, trading for XRPUP/USDT and XRPDOWN/USDT ceased at 03:00 (UTC) today, upon which all active trade orders initiated by customers were automatically closed by the system. The exchange had implored customers to trade their XRPUP and XRPDOWN tokens for other assets before the delisting.

The tokens are no longer on the Binance platform as of press time. If some customers still hold these tokens after the delisting event, Binance has kept the redemption service for them open, allowing users to redeem the leveraged tokens for USDT through the dedicated Leveraged Tokens page or the wallet function.

Leveraged Tokensare specifically meant to multiply the gains (or losses) made in a trade. For instance, a 2x leveraged token would deliver 2 times the return of the underlying asset. The XRPUP token multiplies investors returns when XRP goes up, and XRPDOWN multiplies investors returns when XRP goes down.

The XRPUP and XRPDOWN tokens are the latest in a long line of leveraged tokens delisted by Binance this year. In January, the exchange announced plans to delist twenty leveraged tokens from Feb. 14 to 18. Last month, Binance also disclosed that it would cease trading for six leveraged tokens from May 9 to 11.

Follow Us on Twitter and Facebook.

Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basics opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.

-Advertisement-

Excerpt from:

Binance Delists Two XRP Leveraged Tokens: Details - The Crypto Basic

Crypto exchange Binance has acknowledged that a crackdown on cryptocurrencies has made conducting business in the United States challenging. It is now looking to be regulated in the United Kingdom.

During the Financial Times Crypto and Digital Assets Summit, Patrick Hillmann, Binances chief strategy officer, said that the past six months have been quite confusing in the United States. He added that the recent actions taken by the U.S. Securities and Exchange Commission (SEC)against rival exchange Coinbase for allegedly violating securities laws are an indication of how the U.S. right now is in this strange place.

While Hillmann acknowledged the very confusing environment in the U.S., he expressed the companys commitment to doing everything we possibly can to be regulated in the United Kingdom.

This is a change of tone from his earlier statement that the current crackdown on crypto had made it difficult to do business in the United States. Binance has previously clashed withU.K. regulators over its failure to provide essential information about its business activity, which led regulators to suggest the exchange was unregulatable.

In 2021, the Financial Conduct Authority ordered the company to stop all regulated activities in Britain. Other groups have claimed that U.K. officials have been overly wary of fintech and crypto companies.

A representative from Binance stated that the company adheres to regulations concerning money laundering and terrorism financing in the United Kingdom. They explained that Binance has a compliance program, which utilizes Anti-Money Laundering, global sanctions principles, and tools employed by financial institutions to detect and address any suspicious activity.

According to Binance, the crypto exchange can secure approvals and registrationthrough the compliance program in various jurisdictions across the globe, including New Zealand, Dubai, France, Italy and Spain.

Related: Bitcoin priced on Binance.US crypto exchange at $700 premium

Binance has been the target of U.S. regulators clamping down on perceived illicit activity this year. In March, the Commodity Futures Trading Commission (CFTC) brought a lawsuit against Binance, alleging it had been operating illegally in the country and had broken the law by extensively soliciting U.S. customers. At the time, Binance called the CFTC complaint unexpected and disappointing.

Magazine: US and China try to crush Binance, SBFs $40M bribe claim: Asia Express

Link:

Binance looks to the UK for regulation amid US crypto crackdown - Cointelegraph

What is CryptoSlate Alpha?

A web3 membership designed to empower you with cutting-edge insights and knowledge. Learn more

Welcome! You are connected to CryptoSlate Alpha. To manage your wallet connection, click the button below.

If you don't have enough, buy ACS on the following exchanges:

Access Protocol is a web3 monetization paywall. When users stake ACS, they can access paywalled content. Learn more

Disclaimer: By choosing to lock your ACS tokens with CryptoSlate, you accept and recognize that you will be bound by the terms and conditions of your third-party digital wallet provider, as well as any applicable terms and conditions of the Access Foundation. CryptoSlate shall have no responsibility or liability with regard to the provision, access, use, locking, security, integrity, value, or legal status of your ACS Tokens or your digital wallet, including any losses associated with your ACS tokens. It is solely your responsibility to assume the risks associated with locking your ACS tokens with CryptoSlate. For more information, visit our terms page.

Original post:

Bitcoin drops to $26K as the result of Binance whales selloff - CryptoSlate