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Binance is the perfect example of a robust exchange, suggests SophonEX report

Jibin M George

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Binance is perfect example of a robust exchange, suggests SophonEX report
Source: Pixabay

Liquidity is a key quality for any good crypto-exchange. It is especially significant during bull and bear runs, when thousands of traders and investors seek to either profit from the bull wave, or cut their losses during a bear run. New research by the Singapore-based SophonEX sheds light on the performance of crypto-exchanges during the bull run last week.

SophonEX used a variety of indicators and factors such as price impact, hourly trading volumes, and order books to identify which crypto exchange provide its traders and investors with more liquidity and are more robust during a busy time such as a bull run. According to SophonEX, the analysis also helps identify “which exchanges are only good in “normal” periods, with any crisis debunking their flashy appearance”.

According to the research firm, Changpeng Zhao’s Binance is a perfect example of a robust cryptocurrency exchange. The firm based this conclusion on the fact that Binance had a low 24h-median-price-impact, which rose only insignificantly, during the bull run. This is an indication of robustness and liquidity, the firm stated.

Other exchanges such as Gdax (Coinbase Pro) and Huobi had low price impacts as well. However, these rose significantly when the bull run began. Here, the order book thinned out quickly and “it was likely many market makers temporarily left the exchange without hesitation”.



SophonEX also measured the ratio of fake trading volumes in each crypto exchange, by comparing the peak trading volume against the 24-hour median volume ratio. The firm’s analysis in this respect was prejudiced on the fact that whenever there was a bull run or a “crisis,” real trade volumes rose, while fake trading volumes didn’t. The research found that over half of Huobi, Hitbtc, and Okex’s trade volumes were fake.

The aforementioned research is good news for noted crypto exchanges, Binance and Gdax (Coinbase Pro), both of whom have been deemed to be sufficiently robust and liquid in times of crisis. On the other hand, it also points a finger at exchanges like Huobi and Okex at a time when cryptos’ fake trading volumes are still making the news. Finally, the report concluded by stating that the “BTC price surge incidence has long-lasting repercussions towards market makers, who are very reluctant to place orders back near the top of the order books”.





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Bitcoin

Bitcoin’s [BTC] biggest threat is its users, not governments, says Bitcoin.org’s Cobra

Febin Jose

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Bitcoin’s [BTC] biggest threat is its users, not governments, says Bitcoin.org’s Cobra
Source: Pixabay

Bitcoin [BTC], the world’s largest cryptocurrency, saw a significant surge earlier this month, helping the coin break strong resistance at $5,000 and $5,200. Following the great fall of the king coin in early 2018, the Bitcoin ecosystem was struggling with scalability and technological issues, eventually leading to the hard fork.

Bitcoin.org’s Cobra, who is also the co-owner of Bitcointalk.org, has always maintained that Bitcoin was the cryptocurrency to look out for through his various Twitter bouts with prominent personalities in the cryptoverse. Due to his strong, unbridled support for Bitcoin, he has often trashed altcoins for their low market dominance.

In a new Twitter thread, Cobra spoke about the “biggest threat” to the Bitcoin ecosystem. Even though many crypto-enthusiasts believe that governments and technological issues were the biggest threats to the king coin, Cobra had a completely different opinion.

According to the Bitcoin maximalist, users have the potential to signal Bitcoin’s doom. His tweet read,

Source: Twitter

Source: Twitter

Though most Bitcoin supporters usually support his opinions, this tweet was met with a lot of resistance. Twitterati swarmed the thread in an attempt to prove him wrong. A user named @MrHodl alleged that this could not be true as Bitcoin had “no community.” He added that this, in turn, prevented toxicity in the ecosystem.

Cobra replied to the tweet stating,



“I think there is a community, it’s just not fully representative of everyone with a stake in Bitcoin. Most holders are quiet and not too familiar with what’s going on. There’s people with 1000+ BTC and they don’t engage at all with discussion platforms, just lurk.”

Some Twitter users took it as an attack on Bitcoin investors and opposed Cobra’s stance. A user @CarstenBKK commented,

“Maybe I am lost in translation. What do you wanna tell us? That you are part of Bitcoin network of people owning/using it, but you are just disgusted by the idea, that the network is called community in the sense of direct human collaboration and affection to the groups ideals?”

Previously, Cobra had accused Twitter’s Jack Dorsey and Square Crypto of pandering to Bitcoin users, while also suggesting that the crypto project was merely a way to bring in more users for Dorsey’s CashApp. His tweet read,

“Gotta respect how hard @sqcrypto is pandering to Bitcoiners. Very clever how @Jack has embedded himself in the community; in return the community promotes @CashApp, which gives that service a small but dedicated and activist group of early users.”





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