The Since the original dotcom boom, cryptocurrency industry’s surge has created several of the rapid development and most profitable companies. Coinbase, for example, valued at nearly US$100 billion after its current IPO.
Introduction on Binance
Nevertheless, the cryptocurrency exchange Binance (BNB) is overlooked by the blockbuster success and the Chinese-founded exchange’s size. Traders are trading and average of US$100 billion daily. The company was initially founded in 2017 (5 years after Coinbase). The exchange and trading platform’s existing size is similarly impressive. However, others copied the huge development of the cryptocurrency industry. As a result, the Binance experienced fast expansion. However, it also be due its unconventional approach to offering its services in every corner of the globe for the last four years. It is one of the interesting parts of future negotiations filed by unhappy traders against the platform.
The mainstream news outlets like CNBC and the Financial Times published stories about a created a third-party funder based in Switzerland called Liti Capital. The company involves BNB with the news of a dispute. This initially broke in the middle of August 2021. Liti Capital plans to finance a “class action” style HKIAC negotiation. This has up to 700 applicants. When the first day of the biggest percentage dropped in Bitcoin value ever and resulted to traders’ big losses who have inaccessible accounts the events of the disagreement cause many parts of the Binance online trading platform to shut down on 19th of May 2021.
The battle, and the Billions Tailing Cryptocurrency Derivatives
There was video interview by CNBC with David Kay, Liti Capital CIO, together with other print interviews. However, there was no requests for negotiations or other declarations of case have been publicly available. The company revealed details that the possible traders are applicants. Six people lose over US$20 million in total as reported. The size of total claims roughly reaches over US$100 million. Most of the possible applicants seem to have been exchanging cryptocurrency derivatives. This is a key factor to understanding the root of the disagreement and Binance’s commercial success. This includes the current increased regulatory criticism of cryptocurrency exchanging in authorities all over the world. In short, people makes contracts on top of monetary assets, these are also the derivatives. This build connections in relation to those assets.
Crypto derivatives on exchanges such as Binance are al most the same to the ones that people see on stocks, commodities or indexes in traditional economic market, but of course, the financial assets are cryptocurrencies. Through the high unpredictability of cryptocurrencies, they can be risky and possibly disastrous, especially for brief periods of time.
The possible applicants’ dispute was they were unable to access their accounts and trading positions. This was in the most unpredictable days in the history of cryptocurrencies. People don’t limit their losses or post more security for liquidation to be avoided. This was all due to shutting down Binance’s platform. These declarations reached the regulated traditional markets.
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