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CONTROVERSY IN THE CRYPTOCURRENCY EXCHANGES IT’S BINANCE’S TURN

digital currency

The months go by, and without thinking about it, new events are being generated around digital currencies, as well as in the global financial market; there are many ups and downs that companies have had to go through in terms of the increase or decrease in the price of their assets. Click Here To Learn More information about this safe and reliable trading platform.

However, in the face of not very encouraging general conditions for the digital financial market, cryptocurrencies have struggled to maintain their ranking among investors and traders in the crypto market.

A global vision of the environment

With the bankruptcy of the various exchange platforms, confidence in digital investment instruments has decreased, and tokens have lost their value; this does not show a change in trend; on the contrary, the crypto winter continues.

Bitcoin has shown its strength as a crypto asset with the largest market capitalization, strengthening it and even minimal investments by traders tend to focus on the said digital asset.

The fall of this leading digital asset in the market has come to decrease its price by more than 75% compared to its last historical maximum; this demonstrates the substantial fluctuations and complications generated in the digital financial market.

Everything points to a strong crypto winter that, according to the time frames established in previous phases, is far from over, which has undoubtedly affected the exchange platforms, destabilizing after the fall of Terra Luna at the beginning of 2022.

It is not the first or last time we have seen this digital financial market fall and recover. It is to be expected that after severe economic and financial blows at a global level, uncertainty increases, generating distrust and fear of investing among investors.

A factor causing a commotion is the Exchange’s bankruptcy; the most recent and alarming is FTX, considered the most solid cryptocurrency exchange platform as far as this market is concerned.

Interruption of withdrawals that generates an alarm

The largest cryptocurrency exchange platform in the world is known as Binance, which was recently linked to the bankruptcy of FTX after announcing that Binance could get FTX out of the critical financial situation, which was later denied due to the severe crisis that FTX is going through.

For Tuesday the 13th, withdrawals specifically from the stablecoin were interrupted USDC since it was in a period of Exchange of tokens, which was later restored.

USDT and BUSD tokens were made available for users to transact so that the market would not collapse while the token Exchange was taking place.

According to CE0 Changpeng Zhao, this decision was due to the high demand for USDC withdrawals, which is tied at par with the US dollar price.

These transactions require the intervention of a traditional financial institution, a bank in New York City, where the conversions must follow the regular channels, and said the transaction would take a few hours.

The intense controversy that the bankruptcy of FTX has generated has prevented the market from evolving and establishing itself. As a result, users create expectations if the downtrend continues until Binance could fall.

Binance is under investigation for misuse of funds

One issue that has put the cryptocurrency market the most in the eye of the hurricane is using said digital assets for money laundering. For this reason, the United States Department of Justice has arranged to investigate said exchange platform crypto.

The investigation began in 2018 when criminal charges were considered against Binance and some of its managers for finding the exchange platform guilty.

All this is due to the transfer of money without a license, linked to conspiracy for money laundering and violation of criminal sanctions.

On the other hand, it should be noted that the Binance platform is not registered in the United States, even though more than a third of its users are in this country.

Conclusion

All this critical situation regarding the crypto Exchange will be modified once the market stabilizes, raising the prices of cryptocurrencies and benefiting every one of the investors who have waited for a change in trend.

It is essential that once novice user decides to enter the digital financial market, they must make the necessary inquiries regarding these platforms so as not to be victims of scams.

What do you think?

Written by Maishah Marsden

Maishah Marsden is the founder of ShopaXo (ShopInKenya.Com) and Maishah.Co.Ke . He is a top Kenyan blogger casually called by his peers as "Life'. If he is not writing your favorite articles, he is with his family. He loves sport and won't mind going on Safari anytime.

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