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In recent developments, two cryptocurrency giants, Binance and FTX, confront formidable challenges as the digital asset landscape undergoes turbulent times.
Binance’s Revenue Takes a Hit
Binance, a major player in the cryptocurrency sphere, faces a sharp decline in trading volumes. Thus, leading to a 38% reduction in revenue projections, as reported by the Bloomberg Billionaires Index. This downturn has translated into a staggering $11.9 billion decrease in the net worth of founder Changpeng Zhao, bringing it down to $17.2 billion.
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Binance revenue market share in the crypto trade has dipped from 62% in Q1 to 51% in Q3, following the conclusion of a zero-fee promotion. The company’s reputation has also suffered due to regulatory actions taken by the SEC and CFTC, who cited poor money-laundering controls and client asset mishandling.
FTX Faces Bankruptcy
In a related development, after discovering that Alameda Research held a substantial stake, Zhao made the decision to liquidate an FTX-related token. This move triggered massive withdrawals and eventually led to the declaration of bankruptcy for FTX, erasing the wealth of Sam Bankman-Fried.
Binance’s Ongoing Struggles
Back in June, Binance.US halted dollar transactions. However, causing a sharp decline in trading volumes and devaluing the company to zero from a $4.7 billion valuation in a March 2022 funding round. The platform implemented several changes, such as suspending USD deposits, ceasing direct US dollar withdrawals, removing FDIC insurance, and introducing stablecoins and digital assets for withdrawals. These adjustments have impacted banking partners and necessitated the implementation of measures to safeguard the platform.
Coinbase Also Faces Headwinds
Amid these challenges, Coinbase Global Inc.’s Q3 trading volumes have fallen by 52% year-over-year. Binance retains a position in the crypto market, accounting for 51% of total on-exchange crypto trades as Q3 2023 draws to a close.
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Disclaimer:
Please note that this article serves solely for informational purposes. As such, binance revenue it is not financial advice. We strongly advise readers to conduct thorough research and consult with financial professionals before making any investment decisions.
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