Exchanges pledged $2.5B to user protection funds amid FTX’s collapse: Report

Most Respected Crypto Exchanges Implement User Protection Funds

A recent report from blockchain analytics firm Nansen, released on June 14, revealed that most respected crypto exchanges have implemented user protection funds in response to the downfall of FTX. Binance, OKX and Bitget have pooled together a total of around $2 billion in fiat funds for this purpose, while Huobi’s insurance fund is backed by 20,000 Bitcoin (BTC). Coinbase, on the other hand, offers up to 150,000 British pounds ($189,140) of insurance for accounts held by customers in the U.K. The Nansen researchers expressed this in their report.

Exchange Trading Volumes Following FTX Crash

Binance has held the highest position in terms of both spot and derivatives trading volume. In the spot market, the exchange held a 69% market share and a monthly trading volume of $209.5 billion in May. In the spot markets, Kraken saw the most growth in trading volume, increasing 14.35% to reach $18.9 billion in the six months after FTX’s decline, compared to the prior six months. Conversely, Bitfinex had the most significant decrease in trading volume, decreasing 59.5% to $5 billion over the same period.

When it comes to crypto derivatives, all exchanges experienced a decrease in activity following the FTX crash, apart from Bitget whose average 6-month trading volume rose by 4.85% in comparison to the previous period, amounting to $204.1 billion. According to the researchers, Bitget, Bybit and Binance have done comparatively well since the FTX crash. However, Nansen warned that the unpredictable regulatory situation in the United States is a cause for concern regarding the exchanges’ expansion.

Magazine: Binance Humiliated, Hong Kong Requires 100,000 Cryptocurrency Employees, China’s AI Unicorn.

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