Binance, a major global crypto exchange, has recently concluded its zero-fee trading, leading to a 16% reduction in spot volumes. Given the regulatory scrutiny by the US Commodities and Futures Trading Commission (CFTC), which filed a lawsuit against it for a potential breach of derivatives regulations, Binance has been under a lot of pressure.
Drastic Changes in Binance
In the past week, Binance has seen a 16% decrease in its market share, resulting in a considerable impact on its crypto market dominance. According to Kaiko, a blockchain analytics firm, the discontinuation of Binance’s zero-fee trading has had an even bigger negative effect than the CFTC lawsuit.
Despite a 16% decrease in spot volume market share, Binance’s perpetual futures trade volume has only dropped by 2%, according to Kaiko. This can largely be attributed to the termination of zero-fee spot trading rather than any regulatory action.
Concerning Rumors
Recently, Rumor has it that Binance’s Chief Executive, Changpeng Zhao, may be subject to an “Interpol Red Notice” according to a tweet from @cobie.
This news has come at a time when Binance has experienced a surge in market share, climbing from 50% to 65% since November 2022, following the collapse of the crypto exchange FTX. This development has been closely monitored by the cryptocurrency community.
The crypto sphere is abuzz with speculations after @cobi’s tweet was decoded using the SHA-256 hash function – the same cryptography used to secure Bitcoin and other digital assets. This has also caused some immediate changes in the prices of BNB Coin and Bitcoin.
However, the Chief Strategy Officer Patrick Hillmann of Binance has issued a clarification on his tweet, affirming that the rumor is either a hoax or a law enforcement agent is illegally providing elements of a case file.
