Bernstein warned about the growth of Binance share in the crypto market to 80%

Bernstein warned about the growth of Binance share in the crypto market to 80%

Analysts note that if FTX is purchased, the leading crypto platform will significantly increase its user reach, which could attract the attention of antitrust regulators Crypto exchange Binance will control more than 80% of the global crypto market if a deal to buy the FTX platform is signed, reports CoinDesk, citing a Bernstein report. According to analysts, this could attract the attention of antitrust regulators in the U.S. and Europe.

Richard Bernstein Advisors was founded in 2009. Its founder Richard Bernstein has worked on Wall Street for over 35 years and is one of the 50 members of the "Hall of Fame", established by Institutional Investor, which includes analysts who have been ranked at least 10 times as the best experts in their fields.

The purchase of the exchange Binance platform FTX became known in the evening of November 8. Due to the serious and rapidly developing liquidity crisis on FTX, its founder Sam Benkman-Fried was forced to ask the head of the largest cryptocurrency exchange for help, which resulted in the decision of the transaction.

As of November 8 this year, this FTX was ranked #5 in daily trading volume at $3.6 billion, not including its separate divisions operating in the U.S. and Turkey. And the Binance platform is by far the largest cryptocurrency exchange with daily trading volume of more than $51 billion.

The report notes that both companies are registered in offshore territories, but American and European regulators can intervene if FTX has investments in their jurisdictions.

At the same time, analysts say that any possibility of a deal breakdown would be a strong bearish signal for the crypto market. In addition, the situation could be a "highly disastrous outcome" for FTX investors, who invested $400 million in the exchange in January of this year, when the value of the platform according to various estimates ranged from $18 billion to $32 billion.

The due diligence that Binance is conducting prior to the transaction will take time, according to the report. This includes the exchange to determine whether all customer funds have been saved and whether they have not been used by FTX for third-party purposes.

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