![]() ![]() Though Binance slightly grew its share, the overall retreat lowered its take by 26% to $23.3 trillion. Volumes fell by over one-third to $48.7 trillion. The frenzy cooled considerably last year. Binance captured an incredible $31.7 trillion, or 43% of those trades. In 2021, digital currency transactions boomed, reaching $74 trillion for the year, according to CCData numbers. So the all-in China number is bigger than $90 billion. The piece notes that the $90 billion figure for China “ trades made by a subset of very large traders.” It doesn’t take a stab at estimating how much crypto those whales are buying and selling on Binance. ![]() The Journal, however, adds an important proviso. This is an astoundingly low number that would signal a recent collapse in Binance’s revenues, and a strong probability it’s already booking losses. Hence, on an annualized basis, Binance’s sales would be running at around $5.4 trillion (12 months x $450 billion). The story specifies that the $90 billion comprises both spot and futures transactions, the latter the most important contributor by far. The Journal’s finding that China’s $90 billion in trading for May accounted for one-fifth of Binance’s overall business implies that its volumes for the month totaled $450 billion. And its capital rests primarily in a self-issued, relatively little-traded coin that-if Binance sells it to meet operating expenses-is vulnerable to a deep dive that could rock the crypto world. If Binance can’t collect enough revenue to cover its rent, personnel, data center, compliance, and marketing costs, it will need to start exhausting its war chest to meet the shortfall. The mystery centers on whether the damage is so severe that Binance, which CZ declares is “still profitable,” will soon start losing money. In April, Germany’s financial regulator had said that they had “reasonable grounds” to believe that these stock tokens violated securities laws, and the UK’s financial regulator is investigating the matter.Still, it’s clear that double hit from legal crackdowns targeting Binance and steep drop in overall trading of digital currencies has hammered the exchange’s volumes. The day before, Italy’s financial regulator referenced stock tokens in a notice that said Binance can't operate in the country. īinance said it halted the offering to focus “on other product offerings,” but a few hours earlier, Hong Kong’s Securities and Futures Commission warned consumers that Binance is not "licensed or registered" to offer tokenized stocks, which it said are “likely to be securities” under Hong Kong law. CM-Equity still operates similar services on FTX and Bittrex. Customers couldn’t buy new stock tokens and Binance said it wouldn’t support the tokens at all after October 14. In mid-July, Binance ceased tokenized stock trading without warning. Binance listed Coinbase stock on the day of the listing and also sold tokenized equity in companies such as Tesla, Apple and Microsoft. Unlike regular stocks, Binance’s tokenized stocks did not pay dividends to customers, who also had no shareholder voting rights.īinance launched tokenized stocks on April 12, two days before crypto exchange Coinbase was listed on the Nasdaq. In Binance’s case, CM-Equity operated as the broker it sold tokenized, fractionalized of stocks it owned to Binance’s customers. Tokenized stocks are cryptocurrency derivatives that track the value of securities. If customers do not sell the tokens or move them to CM-Equity AG’s platform, Binance will sell the tokens for them on October 15. They can sell them on Binance up until October 14. ![]() ![]() Customers from other nations, such as the United Kingdom, cannot migrate tokens to CM-Equity AG. ![]()
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