After setting a daily trading volume record this year in September, cryptocurrency trading platforms have seen spot trading volumes decline. In October, top trading platforms saw their volumes plunge.
According to CryptoCompare’s October 2020 Exchange Review, Top-Tier cryptocurrency exchanges, defined by the firm’s Exchange Benchmark, saw larges decreases in monthly spot trading volumes in October, with some top platform losing as much as 40% of their trading volume.
The decline was so significant that while derivatives trading volumes across the crypto space only decreased by 2.4% in October to $619.9 billion, total spot trading volumes decreased by 17.6% to $557.7 billion.
Binance was the largest Top-Tier exchange by volume in October, the report adds, trading a total f $75.7 billion. Binance’s volume dropped 33.1% compared to September. Behind it was Huobi Global, which traded $41.7 billion, down 31.4%. Next came OKEx, which traded $32.1 billion, enduring a 42% decline when compared to the previous month.
Kraken, Coinbase, and Liquid followed but with less considerable declines. Coinbase’s volume dropped by 17.5%, while Kraken’s dropped 13%. Liquid’s volume dropped by 4.3%. Despite BTC’s price moving above the $13,000 mark towards the end of October, the daily maximum traded was $29.84 billion on October 21.
The top three Top-Tier exchanges, Binance, Huobi, and OKEx, maintained their positions in October, and out of the top 15 Top-Tier trading platforms they represented 77% of the volume last month, down from 82% in September.
At the beginning of September, the maximum for that month was set at $39.92 billion. Top-Tier exchanges traded a daily maximum of $20.14 billion last month, compared to $27.6 billion in the previous month.
Cryptocurrency trading platform charging the traditional taker fees represented 83.8% of the total exchange volumes in October, down from 84.4% in September, while those implementing the controversial trans-fee mining (TFM) model represented less than 15% of the total trading volumes.
The report details that fee-charging exchanges traded a total of $567.2 billion in October, while exchanges implementing the TFM model traded $84.2 billion that month. Fee-charging exchanges saw their trading volumes plunge 18.2% last month, while TFM exchanges’ volumes plunged by 34.5%.
Featured image via Pixabay.
FUD or regulatory change? Rumor clouds swirl around crypto exchanges
The mood of fear, uncertainty and doubt, otherwise known as FUD, that has gripped some of the largest cryptocurrency exchanges since October heightened last week — and it had nothing to do with the United States presidential election.
“Weird Binance fud Friday and weird huobi arrest fud today,” tweeted MyCrypto CEO Taylor Monahan, referring to an Oct. 29 Forbes report that Binance had set up its U.S. unit, Binance.US, as a regulatory decoy and referencing separate rumors that Chinese authorities had detained a senior executive at Huobi.
FUD, which has long dogged the cryptoverse, is commonly defined as misinformation intentionally spread to put a competitor at a disadvantage — to knock down a rival’s stock price or coin price, for example. It can also result from government action, such as the arrest by U.S. authorities of BitMEX’s co-founder and former chief technology officer on Oct. 1 or the reported detainment of an OKEx co-founder by Chinese police in early October. It raises speculation: Who is causing the FUD, and what is that party’s motivation?
Binance CEO Changpeng Zhao, for example, characterized the leaked document, which detailed the exchange’s purported 2018 plan to evade Bitcoin (BTC) regulation by setting up a U.S. subsidiary with a “feigned interest in compliance,” as FUD, adding: “The said document was not produced by a @Binance employee (current or ex).”
In any event, the FUD meter seemed to be rising last week, particularly as the Huobi rumors were accompanied by reports of large Bitcoin withdrawals at the Singapore-based exchange. Boxmining creator Michael Gu, for one, announced that he was removing his balances from Huobi “until this FUD clears up.”
But was there anything behind all those events? Some have suggested that regulators worldwide — in the U.S. China and elsewhere — are now targeting centralized cryptocurrency exchanges, and that is what is causing all the doubt and uncertainty with regard to these largely unregulated enterprises.
Bobby Ong, co-founder and chief operating officer of CoinGecko, is skeptical that there was any such unified plan. As he told Cointelegraph, “The timing of all these FUD [events] seem to be coincidental,” with the charges against BitMEX being brought about as the result of a prolonged investigation.
Monahan, for her part, allowed for the possibility that regulatory actions could indeed be a key source of recent anxiety; but then again, it could just be rivals spreading rumors and innuendo about one another. Huobi’s coin, Huobi Token (HT), took a hit when the bad news broke, falling hundreds of dollars on Nov. 2. Monahan shared with Cointelegraph:
“It is interesting that we’ve seen so much confirmed and rumored regulatory action around the top futures/derivatives exchanges in the past month. However, it may be that we’re simply seeing an increase of FUD now that these exchanges have their own token — BNB, OKB, HT, etc. The FUD usually reserved for coins/tokens is now attached to the exchange itself.”
But maybe there is a method to all this “FUDiness.” Syren Johnstone, who is executive director of the compliance and regulation program at the University of Hong Kong and has written about regulating crypto exchanges, suggested to Cointelegraph that the global regulatory pendulum is swinging in the direction of tighter control:
“In Hong Kong the government this week proposed to bring all crypto-assets under the oversight of the securities regulator by using money laundering concerns as the stepping stone. Legislation has been proposed in the EU and the U.S. that drives crypto-assets into existing regulatory silos. These actions indicate the wind has definitely changed direction — [while] strengthened regulatory mandates increases the likelihood of enforcement.”
Jay Hao, CEO of OKEx, told Cointelegraph: “It seems as if the regulators have been more prolific over the last months,” particularly with the legal problems surrounding key exchanges. “However, this is not surprising as certain moves from regulators such as the U.S. CFTC and the UK’s Financial Conduct Authority have been anticipated.”
As for all the fear, uncertainty and doubt that seem to surround centralized exchanges recently, “The market is largely retail-driven still and heavily influenced by news and rumors,” said Hao, adding:
“With the growth of DeFi, there has certainly been more FUD and backlash against centralized exchanges and I think that this is more what we are seeing rather than major increased action by regulators.”
It should be noted that OKEx itself became a FUD talking point after an Oct. 16 report by a Chinese news agency saying that the exchange’s founder, Mingxing Xu, had been questioned by Chinese police, which was followed by the Malta-based exchange’s suspension of withdrawals. In a Nov. 6 statement, OKEx apologized “for the inconvenience caused by the suspension of digital asset withdrawals” and denied claims “that a concerned party related to OKEx is under criminal detention.” But meanwhile, users still can’t withdraw funds from the exchange.
Nevertheless, recent events can be worrisome. As Monahan told Cointelegraph, holding funds on central exchanges has always been risky, adding: “Now we are reminded that regulatory action can affect end users and their ability to access their funds. The old adage — ‘not your keys, not your coins’ — remains true.”
Thus, a user’s best choice to retain control of their cryptocurrency is to use cold storage for long-term holding, and when using “a centralized exchange, they should be aware of the risks and choose an exchange that has strong security, a good track record, and doesn’t actively thumb their noses at regulators.”
Why did Gu withdraw his funds from Huobi? “I’m a victim of the Mt.Gox exchange hack, so I prefer playing on the safer side,” he told Cointelegraph. “Huobi denied claims they are under regulatory scrutiny, but can we really trust them? We saw whales move out of BTC in a couple of large withdrawals.” If the exchange becomes insolvent, would the private keys then be held by a government? One doesn’t really know. “It’s easier to take out funds now and redeposit [them] once it clears up.”
Ong said that users need to understand “that the risk is high for non-regulated exchanges like those that appeared in the news recently. These exchanges can shut down or disappear overnight due to a ‘hacking incident.’” By comparison, Ong outlined for Cointelegraph:
“Regulated exchanges have higher safety measures as the client funds are segregated and held in custody with a third party. There are also more safety and audit measures put in place by the regulators when issuing licenses to these exchanges.”
That said, centralized exchanges can be useful for investors who aren’t ready to act as their own banker or custodian. “There will always be a place for CEXs as an easy way to onboard people to the cryptocurrency space and to offer users a robust and secure environment to store their funds,” said Hao, adding that “As long as they keep up with local laws, they can offer a secure place for their users.”
Some believe that China is playing a role in the recent FUD. Gu told Cointelegraph that “China is also stepping up crypto regulation to push people to use their DC/EP,” the nation’s digital currency project known as Digital Currency Electronic Payment. Ong agreed: “China is pushing hard to get DC/EP adoption and wants to show that it is superior to cryptocurrencies.”
Monahan seemed unconvinced on this point, however stated: “Have we actually seen China upping its regulation? It has been pretty locked down for years now.” She further added: “If we saw action from China akin to the CFTC and DOJ filing criminal charges against the founders of BitMEX then it might be worth investigating that angle. For now, the steps China takes to ensure that its digital yuan has little or no competition remain to be seen.”
Johnstone noted that China’s central bank digital currency is positioned as a fiat currency and a payment tool — something quite different from cryptocurrency — further sharing with Cointelegraph:
“Too many Chinese citizens had acquired cryptocurrencies by the time China prohibited initial coin offerings. It created a legacy problem that will diminish over time. The basic dynamic in China is that you cannot do much with a cryptocurrency but you will be able to do many things with the CBDC.”
Gu told Cointelegraph that “Regulation is bound to come,” and Johnstone agreed, adding: “There is definitely more regulation coming for centralized crypto exchanges, as evidenced by what’s now being proposed and contemplated in the EU.”
Related: The case against BitMEX is a compass pointing toward the future of crypto regulation
In sum, underlying all the recent FUD may be a recognition that governments are looking more closely at large centralized exchanges, especially as cryptocurrencies garner more attention (BTC surpassed $15,600 on Nov. 8) and crypto use becomes more widespread. And this isn’t necessarily a bad thing. “Enforcement and more regulation doesn’t spell the end of cryptocurrencies,” said Johnstone. “The regulatory endgame is a stronger and safer market environment.”
Taking a bird’s-eye view, centralized exchanges have come a long way from the Wild West days of only three years ago. As Hao told Cointelegraph, “Most of the scams have been weeded out and exchanges have learned to adapt and build robust platforms.” But that doesn’t mean that governments won’t be demanding more from exchanges in regard to compliance as Bitcoin and other cryptocurrencies become further entrenched.
Binance Predicts that Centralized Crypto Exchanges will Eventually be Replaced by More Decentralized or Non-Custodial Trading Platforms
Binance, the world’s largest digital asset exchange, has noted in its weekly crypto market report that for most of the past week, Bitcoin (BTC) had been trading between the relatively tight $13,300 and $13,900 range. But then, over the span of just 48 hours, the flagship cryptocurrency rallied, first surging past the $14,000 threshold on Thursday (November 5, 2020).
Bitcoin then soared past the $15,000 mark on Friday (November 6, 2020). The leading cryptocurrency’s peak of $15,900 this week was notably the highest that Bitcoin has reached since January 2018, Binance confirmed in its report. The exchange pointed out that the last time Bitcoin was trading at $15,500+ was in the middle of the crypto bubble back in late 2017 and early 2018.
Binance further noted:
“Bitcoin’s bullish run rubbed off on most of the altcoin market as well. Ethereum rose from $380 to above $400 on Monday and then again on Thursday, before mirroring Bitcoin’s 48-hour climb to end the week at $440, a two-month high. However, not all altcoins benefited from Bitcoin’s record rise. Binance Coin (BNB) saw sideways price movement this week, descending from $28.50 as low as $26 on Thursday, before recovering slightly to $29 to close the week.”
The exchange added:
“The cryptocurrency industry’s total market capitalization started the week at $390 billion, with a sideways movement throughout the week, before starting to pump on Wednesday and reaching $446 billion on Friday, the highest point since May 2018.”
While sharing other crypto market updates in its report, Binance noted that it managed to recover more than $344,000 from the Wine Swap exit scam. The Binance Security team reportedly helped “recover 99.9% of an estimated $345,000 worth of funds stolen as the result of an exit scam.”
Earlier this week, Binance posted an article titled: All in on DeFi: Why the Days of Centralized Exchanges Are Numbered.
The article states:
“DeFi, or decentralized finance, finally found its footing this year, with numerous DeFi tokens and protocols gaining widespread traction amongst crypto users. Powered by smart contract technology, innovations like yield farming have allowed everyday users to earn unprecedented interest on their crypto assets.”
It also mentioned:
“It seems we’ve already reached ‘the turning point’ when it comes to DeFi adoption. After all, the enduring appeal of financial self-custody and decentralization is central to the original promise of blockchain technology. It has the capability of increasing the freedom of money for all who participate, bringing financial opportunities to more people than ever before.”
The article, which was authored by Binance CEO Changpeng Zhao, concluded:
“As such, DeFi provides the terminal trajectory for the future of crypto. However, it will need help from CeFi platforms, which will be, for many users, the gateway through which they access DeFi for the first time. We believe the future of the industry lies in decentralization, and with the momentum increasing, it’s time to go all in.”
In a recent interview with Crowdfund Insider, Dave Hodgson, CIO at NEM Group, predicted:
“2021 will see the DeFi space continue to mature and become more mainstream, driven by both the new retail and institutional moves into the crypto market and the wider macro environment (covid, political uncertainty, hyper-inflation etc). This maturation process is likely to present huge opportunities and risks as we go through the experimentation phases but it will be exciting and ultimately get us to somewhere that is better than the current state of Centralized Finance (CeFi). Finally, I think we will see continued moves away from centralized exchanges toward solutions such as Uniswap (DEX) and LeverJ (DEX + Derivatives).”
Author: News Bureau
What is the exchange rate of USD (US Dollar) / CNY (Chinese renminbi) on Monday November 9, 2020
Get the latest mid-market rate for USD (US Dollar) / CNY (Chinese renminbi) for Monday November 9, 2020 right here.
The latest rates for USD (US Dollar) / CNY (Chinese renminbi) are available below. As a leading finance news site the team at Born2Invest collates and analyses the latest Forex Market data to bring you live information to help you make the right forex trading decisions.
Monday November 9, 2020 1 USD (US Dollar) is worth 6.602503 of CNY (Chinese renminbi) .
Remember to always trade with a reputable broker. It’s also possible to apply forex concepts to cryptocurrency trading.
Forex trading is risky and complicated. There are countless pairs to choose from and it’s easy for a novice trader to become overwhelmed. Information is power and Born2Invest has curated some beginners forex trading tips to help you get started.
Currency pairs are the foundation of forex trading. Whenever you purchase one currency you sell another. Every pair has a base currency, in this example USD (US Dollar) and a quote currency, or CNY (Chinese renminbi).
A currency pair represents how much quote currency, or CNY (Chinese renminbi), that needs to be spent in order to purchase one unit of USD (US Dollar), the base currency. In the current example you would need to spend 6.602503 of CNY (Chinese renminbi) in order to purchase 1 USD (US Dollar).
Forex pairs fall into three categories; the majors, the commodity currencies, and the cross currencies:
Cryptocurrencies share many aspects with forex trading, namely the concept of currency pairs and high volatility but there are some key differences. Cryptocurrencies aren’t currencies persae, and are usually traded against Bitcoin, which takes the role of USD on many exchanges.
It is also difficult to trade cryptocurrency outside of exchanges and there is more security risk than trading with a registered broker. One way around this is to use a CFD broker which enable traders to purchase contractors for specific amounts of crypto, without directly owning it.