With insights from reports published by Nansen, a blockchain analytics firm, on June 14, 2023, some of the popular cryptocurrency exchanges adopted user protection funds during the collapse of FTX, stated Cointelegraph. Binance, OKX and Bitget are expected to have collected over $2 billion combined in nominal fiat protection funds.
“Proof of Reserves should become the minimum standard in the exchange industry, However, as stated above, these are both positive indicators for an exchange but do not guarantee its solvency,” experts from Nansen explained.
Sources revealed that Binance had an overall market share of 69% and a monthly trading volume of $209.5 billion during May 2023, Cointelegraph highlighted.
Furthermore, “The SEC Chair Gary Gensler has posited that nearly all tokens are securities. This has prevented many exchanges from operating in the US. If the US takes this official position, it could cause significant issues throughout the world for CEXs. It will be worth carefully monitoring the position taken here,” Cointelegraph, concluded.
(With insights from Cointelegraph)