Binance Makes A Smart Move

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The liquidations that took place in the early hours of this morning were quite a bit smaller compared to what we have seen in the past. The last time Bitcoin made a big move over $12 Billion was gambled away burning many retail traders.

What I find interesting is how the market is slowly changing and believe it is for the best as Crypto slowly gathers more momentum. The hefty swings we are seeing right now are not great for mass adoption and only great for the ones who are buying and selling the dips. Honestly I don't really mind as I am thinking long term and will make wherever I can for now so volatility can be your friend.

On the same topic of leveraging Binance and FTX announced today that they were changing their offerings. Binance and FTX have followed in Huobi's footsteps by reducing the 125-1 down to a maximum of 20-1. I don't think they really wanted to as they make a small fortune out of this but this is more about getting regulators off their backs.

Binance being the biggest exchange has taken some serious heat lately and this is a step in the right direction. They also have removed GBP, AUD and the EURO from the margin trading pairs which was obviously something the regulators had asked to happen. These will be totally removed by August 10th which is only 2 weeks away.

I have said this in the past and firmly believe the exchanges can make enough money by providing trading services without having to create other streams from risky leveraging. The investor is changing as in the first quarter this year Coinbase mentioned that 2/3 of trading was institutional and not retail which is a massive change.

Change is good as working out what is good for crypto long term finding the correct balance is how everyone should be thinking. The last thing we all need is more regulation and no doubt we haven't heard the last of this yet. Crypto is definitely seen as the enemy of the establishment so they will try and connive and drag this out.

I expect somewhere along the line banks will try and stay relative by forcing some regulations that will benefit them. Banks are definitely on the way out and will be fighting tooth and nail for survival. Just last week they were fighting against a proposed British Digital currency as their business model would have to change regarding mortgages. Instead of embracing this change which they should they are going to burn themselves which will possibly lead to their demise. Change is inevitable as things are starting to move quickly towards a world accepting crypto.

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That does make a lot of sense for them to pare down their offerings. Sometimes it can just get to be too much and be more troublesome than it is worth. I prefer to do a lot of my trading on decentralized exchanges, but many times the volume and offerings can be limited on them.

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