Binance, the world’s largest cryptocurrency exchange, experienced serious liquidity problems in trading transactions after the resignation of its CEO.
Former CEO of Binance Changpeng Zhao (CZ) As a result of the agreement with the US Department of Justice (DOJ) 21 November He resigned on the day. Although there were no serious declines in the cryptocurrency market after this resignation, the price on Binance order book liquidity decreased significantly.
According to data provided by Kaiko, the stock market 0.1% And %one The level of liquidity measured by market depth indicators decreased by more than 25% in parallel with CZ’s resignation. 0.1% liquidity in order book below $150 million While the liquidity in the 1% sector decreased by approximately for 180 million dollars fell.
to data Accordingly, the decline in liquidity accelerated the decline, especially in the minutes before the DOJ’s meeting held on November 21 at 23.30 GMT.
While market depth represents an average of the volumes created by buy and sell orders, such liquidity deficiencies for whales It makes trading conditions difficult. But this also makes a cryptocurrency worth 0.1% and 1%. moving up or down It means it’s gotten easier than it was the day before.
About subject in the statement Kaiko researcher Riyad Carey made the following statements about the liquidity loss:
Binance’s market depth is 25-30% lower than 24 hours ago. It is particularly interesting that the drop is so uniform: about a 25% drop at depth levels of 0.1%, 1%, 2%, 4%. Normally the different levels act somewhat independently.
Trading Became Difficult in Binance After the Resignation of the CEO: Will There Be Troubles? The article titled was prepared by Tugay Erdem and published on koinbulteni.com.