Stating that the disclosures in leveraged transactions of cryptocurrencies are much higher than the reflections, #bybit CEO #BenZhou says the real amount could be around $8-10 billion.
Ben Zhou, CEO of Bybit, one of the world's largest cryptocurrency exchanges, stated that the liquidations in leveraged transactions could be far beyond what is hidden. "I think the amount declared today is much more than $2 billion," said Zhou, explaining his estimate as $8 to $10 billion. The CEO drew that only Bybit's total amount of $2.1 billion in 24 hours will be exhausted.
Zhou said the following about why he thinks the figure is $8 to $10 billion:
âAs you can see in the screenshot below, on Coinglass, the values given in the last 24 dates of disclosures on Bybit were around $333 million, but these figures do not include all payments. We have an API limit on the amount of data transferred per second. According to my observations, a similar method has been developed to limit regulation in other exchanges.â
Zhou added that from now on, Bybit will share all constitutions transparently.
Liquidation or liquidation refers to the automatic exit or âresetâ of an investor in the cryptocurrency markets with a loss. For example, if the market price drops to a level that cannot protect the investor's collateral during a leveraged transaction, the exchange or brokerage firm is closed. In this way, the investor's negative balance is prevented from decreasing, but some or all of the collateral is lost.