FTX’s downfall isn’t hidden from the world now. Many are angry while others still scratching their heads as to what they should next. While many small exchanges have seen a declining rate of trading on them, some big ones have experienced the exact opposite.
FTX’s Demise Is Binance’s Pleasant Surprise
FTX went down, people booed and reprimanded Sam Bankman-Fried, and the cryptocurrency market saw a huge sinkhole forming right in the middle. A lot of people thought it was the end of crypto trading, but that’s not the case at all.
While this happened on the one hand, things starting seeming pretty good on the other hand. Binance reported that there were 30% more trading occurring on its platform than previously after the collapse and bankruptcy of FTX.
These statistics were not confined to just Binance. In fact, the large cryptocurrency exchanges on the internet saw an overall surge in the trading activity. To be precise, more than $700 billion traded on these exchanges just in November.
That’s a rise of 23% trading activity on these platforms. There has been no doubt in the minds of experts that this huge wave of increased trading activity was a result of FTX’s downfall.
A Chain of Reactions Took Place
The falter of FTX resulted in many things happening at the same time. Traders got bad news after bad news from left and right, especially when they heard bankruptcy and Genesis Global Trading in the same sentence.
The domino effect also impacted Gemini where the company stopped withdrawals of the gains its users had made.
Some great things happened too and Binance was quick to capitalize on the huge swing in the market. It opted to become more transparent by showing the world the assets it owned. Furthermore, it didn’t stop from divulging its crypto addresses in hopes of showing its honest position.
The Aftershocks May Continue
The aftershocks of the huge fall of FTX may continue for some time and every cryptocurrency broker may experience reduced trading activity on their platform. Despite the huge blow, the presence of some of the biggest exchanges in the market shows crypto isn’t going anywhere.