Binance, the world’s largest exchange by volume, would lose ground to rival exchanges.
“At one point in the past 30 days, it totaled 58% of volume among the top five brokers (Binance, Coinbase, Huobi, Crypto.com and FTX). However, currently Binance has fallen to 45% while Coinbase, Crypto.com and FTX have gained in volume, ”noted a recent report.
Some attribute this to the aggressive big budget sports marketing campaigns of Crypto.com and FTX lately. But in reality losing market share is a multi-faceted problem and probably the result of many factors.
It’s been about five months since global regulators, including the UK’s FCA, Singapore’s MAS and Thailand’s SEC, began their crackdown on Binance. While it appears to have calmed down, this episode was undoubtedly still harmful in terms of the deterioration of the stock market’s reputation.
How did Binance react to the crackdown?
Since then, in an attempt to limit the damage, Binance has responded in several ways. This includes strengthening its international compliance team and board of directors with new hires with sufficient regulatory experience.
In addition to establishing a head office, Ireland has recently been designated as one of the locations to establish the base. But other headquarters will follow, with Binance CEO Changpeng Zhao saying the company is in the process of setting up a few headquarters in different parts of the world.
Regulators said the lack of a physical location was problematic as legal complaints did not have an address to file documents with.
Speaking to Bloomberg recently, Zhao acknowledged that international regulators approach crypto with varying degrees of caution. But, he remains optimistic that it hasn’t had a significant impact on global adoption rates.
“I think crypto right now is around 5% adopted in the world, in terms of population, so out of eight billion people, probably 400, 500 million people have it. It’s not a small number, it’s probably bigger than the fourth largest country in the world.
Regarding the upcoming adoption, Zhao said mass adoption is not there yet, citing 20, 50, 80 percent as more appropriate of the term. Nonetheless, he predicts mass adoption over the next five to ten years.
Rival exchanges promote sports marketing to a large extent
Crypto.com hit the headlines last week after buying the naming rights to Staples Center, home of the LA Lakers, LA Clippers, LA Kings and LA Sparks.
The 20-year, $ 700 million deal is widely seen as a watershed moment in terms of raising the profile of Crypto.com and cryptocurrency in general.
Dallas Mavericks owner Mark Cuban, an influential cryptocurrency figure, called the deal a “brilliant idea.” Adding that crypto companies are on a roll lately.
By the way, Crypto.com’s CRO token is one of the top 100 coins in the green today, currently up 6% in the last 24 hours.
In the meantime, it will be interesting to see if Binance responds by following a similar path. But in any case, users will benefit from healthy competition.
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