Binance Keeps Losing Market Share

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According to a report by Kaiko, Binance, a major player in the cryptocurrency world, has experienced a significant decrease in market share.

Binance’s share of global trading volume currently stands at 55%, down from 81% just a year ago. 

At the same time, lesser-known exchanges are experiencing growth. For instance, OKX’s competitors have successfully expanded their customer base during this timeframe.

Changpeng Zhao, the founding father of the cryptocurrency exchange in 2017 with a controversial past as a Chinese-Canadian entrepreneur, has grown the platform into a dominant player in the cryptocurrency industry.

Within a few short months of debuting, Binance became a major player among cryptocurrency exchanges, going head-to-head with industry veterans like Coinbase. A significant factor in its rapid rise was its successful initial coin offerings (ICOs). Additionally, Binance’s eagerness to welcome new altcoins contributed greatly to its growing popularity.

The company’s triumph didn’t come without its share of disputes, however. In November 2021, CZ (Changpeng Zhao) had to resign as CEO due to accusations of breaching anti-money laundering regulations in the United States. Binance was subsequently penalized with a fine amounting to $4 billion.

According to Bloomberg’s news article, the US Department of Justice is proposing a three-year prison term for Zhao. In contrast, Zhao’s legal team argues for probation as a more fitting sentence.

CZ expressed regret for making mistakes leading up to his upcoming sentencing on April 30th.

After CZ’s resignation, Binance has been working hard to bounce back from the significant reputation hit caused by the US DOJ charges in 2023. Consequently, the company experienced a substantial drop in market share, amounting to approximately 30%.

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2024-04-24 23:10