The panic caused by FTX’s bank run and bankruptcy is spreading.
At noon, it was reported that FTX was attacked and all funds were stolen. Even FTX exchange may have been implanted with a Trojan horse to steal private keys.
After this wave of operations, second- and third-tier exchanges may find it difficult to hold up. I think after this wave of panic, altcoins will probably fall badly. After this battle, investors will definitely move their assets from small exchanges to
1. On-chain, 2. Binance, 3. Local commonly used exchanges
But not everyone will mention the on-chain, currently only Binance is trustworthy
Of course, in some areas (not covered by Binance), local investors may also choose the largest local exchange. Then, the investors’ assets on the original exchange (not listed on Binance) will have to be sold into U for collection.
Therefore, with the spread of this wave of panic, it is very likely that small currencies will be sold.
From this perspective, is Binance the biggest winner? Not necessarily. People’s confidence in the industry has been hit hard this time, and it may take some time to recover. Investors’ withdrawals mean that the funds in CEX have decreased, and the trading volume will also decrease accordingly.
On the contrary, people will trust smart contracts more, which is bad for CEX and good for DEX
The exchange's revenue source is mostly transaction fees. With the reduction in CEX trading volume, the revenue will naturally decrease. Second- and third-tier exchanges with no special features may have a hard time surviving this wave.
Winter is coming for exchanges