Trading volume on Binance has been declining over the past two weeks. Changpeng Zhao said the main reason behind the drop was deliberate FUD pressure on the company by competitors.
The cryptocurrency exchange Binance lost about 16% of its market share in trading volume. However, the exchange remains the largest in the world, with a market share of about 54% by the end of Q1 2023. This is reported by Kaiko.
The primary reason for Binance’s falling performance is the spreading FUD effect triggered by the CFTC’s lawsuit against the company and its executives. But Kaiko analysts claim that the exchange’s performance was influenced more significantly by Binance’s decision to end its zero-fee trading program for 13 trading pairs announced in late March.
Changpeng Zhao, CEO of Binance, said the decline in the exchange’s performance due to concerns about the lawsuit is directly related to competitors’ machinations. According to him, “another exchange” is spreading FUD against Binance, sponsoring fake news to destabilize the company. However, Zhao didn’t name a specific “instigator.”
Recall that cryptocurrency exchanges were targeted by U.S. regulators in Q1 2023. For example, the Securities and Exchange Commission (SEC) questioned the legality of Coinbase, forced Kraken to close the crypto staking program, and Bittrex even decided to suspend its activities in the United States due to the “regulatory uncertainty.”
