Binance, the world’s largest cryptocurrency exchange by volume, sent shockwaves throughout the cryptocurrency industry when it was revealed that the Changpeng Zhao-led company will stop accepting U.S users from September 12. After the news broke out, several analysts and proponents of the cryptoverse speculated as to what would happen to Binance, once the US geo-block takes shape.
Larry Cermak, Director of Research at The Block, stated that the launch of a speculated ‘Binance America’ would not have the same impact as the current version of the exchange. Cermak’s tweet read,
“This is nice and all but http://Binance.com trades 150+ cryptocurrencies and has all the liquidity. http://Binance. US will likely only trade BTC and ETH to start – just like fiat-to-crypto exchanges that Binance already launched (Uganda, Jersey and Singapore).”
Cermak is of the opinion that over the last six months, US customers made up 30 million of the total 185 million on Binance. His analysis further showed that the US market was miles ahead of any of its compatriots, in terms of traffic generated this year. Next in line was India, a country where the usage of cryptocurrencies is illegal and where the Finance ministry is still en route to drafting a bill to decide the fate of digital assets.
According to Cermak, even Binance’s latest developments like the Binance DEX would be insufficient to grab market share. In his words,
“The only solution for customers from the U.S. will be to use a VPN. Similarly to what people already do with Bitfinex and BitMEX. But of course, there is a bottleneck – Binance allows withdrawals of up to 2 BTC ($16,500) without verification. Above that, you are out of luck.”
Alex Kruger, another popular cryptocurrency analyst, agreed with Cermak’s statements by claiming that the Binance situation would result in an altcoin winter. Kruger added that it would also be good for Bitcoin and other ‘major cryptocurrencies.’
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