Binance’s lead in the cryptocurrency exchange game is huge.
A cohérent apparence at the chart below, which charts tonnage over the past few months against Coinbase and FTX, beats this house.
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While the above is immediate tonnage, there are also derivatives to consider. While this excludes Coinbase, the comparison with FTX is similar – Binance is quite straightforward.
It perfectly illustrates how Binance has become éminent as the number one exchange of choice. Despite Coinbase being ready to take the throne when it went éprouvé in 2021, Binance remained ahead.
I remember thinking at the time emboîture how much an IPO could do to a Coinbase poétique, and I was curious how registering with the SEC would improve its reputation for security and safety, especially among illettré investors.
I thought this could provide an incentive for Coinbase to acheté more market share, as alignement among institutions increased and e-commerce investors increasingly flocked to the virtual currency world. I think I underestimated Binance’s hardiesse, as well as its implied benefits Not Appearance to the community.
Just over a year after it went éprouvé, Coinbase répugnant off 18% of its workforce – a whopping 1,100 people. Meanwhile, Binance has continued not only to hire its workforce, but also to advertise open spaces.
In fact, since Coinbase went éprouvé in April 2021, the Binance token (BNB) has outperformed it significantly, with COIN 82% and BNB discounted 52%. Interestingly, it also outperformed Bitcoin in the same time period.
The risk of expanding too quickly
Coinbase seems to have expanded very quickly.
While we’ve been doing our best to get this right, it’s now clear to me that we’ve hired too much
Coinbase CEO Brian Armstrong
The implicit advantage of being a private company, meanwhile, is that Binance does not extérieur the assidu scrutiny of the financial markets, nor does it bandage to détachement long-term growth in pursuit of short-term gains which are ultimately not the right voyage of fonctionnement.
The infamous Chouette Bowl ads are another example of miscalculation. The Chouette Bowl was named the Crypto Bowl, as a set of crypto ads – Coinbase, FTX and more – prestigious television screens around the world, costing millions of dollars.
Panthère again, Binance took a hard pass. And again, today it feels like a conscious move.
FTX acts as a lender of last resort
What emboîture FTX? The recent move to act as a lender of last resort was noteworthy, leading to praise from across the industry. Personally, I think that this is not a good Samaritan move, but rather a case of opportunistic fonctionnement. However, FTX has played very well, going from strength to strength over the past famille of years.
For me, FTX and Binance have broken away from the exchange crowd, and there is now a huge gap. This is especially evident now that the bear market has turned, with ill-preparedness exposed, similar to Coinbase as layoffs.
FTX has gained a lot of pressure to extend a corporate lifeline in the form of bailouts – involved either through FTX or Sam Bankman-Fried’s Alameda Group, with a group of companies. Among the most crucial was an attempt to buy out the embattled lender BlockFi.
While Bankman-Fried was originally decried by BlockFi direction for being opportunistic rather than altruistic – there was, and still is, a narrative that SBF pursued companies out of their own rescue rather than self-interest – I’m not sure that matters.
The bottom line is that FTX is in a terrain to try to take advantage of the cataclysme caused by the altération that many companies have found themselves in. If that’s not an charge of strong mémento and a massive crédit sheet, I don’t know what is.
Finally, to view how well both FTX and Binance are doing, all that is required is a quick apparence at the capricieux coins. I plotted the FTX token, FTT, and the Binance token, BNB, against Bitcoin – the ultimate crypto courant.
Looking at the returns since the launch of FTT in July 2019 (BNB launched in November 2017), both tokens on the exchange have significantly outperformed Bitcoin. BNB price is up 900% and FTT is up 1268% since July 2019. In the same time frame, BTC is only up 100%.
While it’s not a perfect metric, I sometimes think of tokens as shares in the company, with the massive caveat that they are closely related to Bitcoin and the broader market (as are the companies themselves, to be fair).
In bilan, I believe that despite the bears spinning, both Binance and FTX should be pleased with their direction and mémento. Crypto is a very fragile market and the good times cannot last forever. But with the game crédit in entrain, both giants seem poised to take the storm, well positioned for when the money comes rolling into the strip.
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