From asset security to ecological development, why Binance can continue to stand firm
The global market has not been peaceful recently. First there was the Silvergate thunderstorm, then SVB began to be run on, and then Signature Bank was about to close. The banking industry ushered in a new round of trust crisis. While the United States was busy rescuing the banking industry, far away in Switzerland Credit Suisse was exposed to the crisis. Many people believed that the reason why the banking industry was riddled with problems was caused by the Federal Reserve's continuous interest rate hikes. However, more people ignored the bank's own problems and the risks brought by human nature.
Binance’s secrets to surviving the banking trust crisis
Banks purchased a large amount of user deposits into low-risk government bonds, coupled with interest rate hike policies, resulting in a liquidity crisis, which became the root cause of the problem. Insufficient deposit reserve ratios and risk control issues were the most direct causes of the problem. In the encryption industry, even the huge FTX will face bankruptcy after misappropriating user funds. On the contrary, as the leader of crypto exchanges, Binance has always adhered to the most basic bottom line and was able to survive smoothly even when it encountered doubts and runs from some users, thus achieving its current industry status.