The fall from grace from one of the largest cryptocurrency exchanges in the world left is still doing damage to the market. The effects of FTX caused one of the most severe market crashes in cryptocurrency’s history – Bitcoin and Ethereum fell to their lowest price in over 2 years.
At the end of the day, FTX ultimately did it by itself. Sam Bankman-Fried’s side company Alameda Research “allegedly” misused their native FTT token to invest in risky loans, effectively trading with the company’s assets.
However, the kick-start to the turmoil that unfollowed was due to action from a rival exchange, Binance.
Perhaps with good reasoning behind that decision. After Changpeng Zhao came in contact with a series of Coindesk documents revealing Bankman-Fried’s misuse of company assets, “CZ” decided to completely liquidate the millions of dollars worth of FTT that Binance used to hold.
No one ended up really winning from FTX’s downfall. The occurrence was a serious hit to the exchange’s reputation, and the entire cryptocurrency market is as close as it has ever been to collapsing.
And Zhao agrees. In a Twitter statement, the Binance CEO was emphatic in saying that FTX’s collapse was “not a win”, for Binance.
“User confidence is severely shaken. Regulators will scrutinize exchanges even more. Licenses around the globe will be harder to get.” CZ wrote on Twitter, on November 9.
Massive Bitcoin Inflow For Binance
However, at the end of the day, recent data from CryptoQuant reveals that Binance might end up being a huge winner in this most recent crypto exchange dispute.
Being by far the most popular cryptocurrency exchange in the world, it is natural that crypto investors decide to change platforms from other exchanges, in fear of another FTX debacle.
In addition, the market analysis specialists revealed that Binance saw a massive spike in Bitcoin influx on its platform, on November 18th — over 60,000 BTC entered the exchange’s platform.
Binance $BTC Holdings
To put it simply, this is the most significant Bitcoin inflow since 2018, before the market rush that happened in 2020 and 2021.
Binance’s $BTC reserves are now one of the largest in the world. The company now holds over 570,000 Bitcoin.