Bernstein said that over $6 billion in user cash were removed from the app on December 13.
Bernstein said in a Monday research study that Binance is solvent, liquid, and steady, as shown by the exchange’s more over $55 billion in verified cold wallet addresses.
The exchange may also “pass the withdrawals test,” as it did on December 13 when $6 billion in client cash were withdrawn.
“Binance’s unchallenged market leadership is no coincidence – it has a long history of putting the client first,” the research said, stressing that the exchange has made consumers whole despite hackers and regulatory hurdles. The exchange now controls over 75% of the worldwide cryptocurrency trading industry.
Bernstein states that Binance has two obstacles. First, it has a Cayman Islands-based offshore holding company, which necessitates “progressive measures moving towards an on-shore structure” even at the expense of short-term revenue.
Second, as a result of FTX’s fall, it is now a “virtual monopoly in worldwide crypto trading.” Decentralized exchanges may now pose a threat to their monopolistic position, as traders may broaden their operations to include self-custody and decentralized trading platforms, despite their inability to do anything about their dominant position.
Binance will continue to apply for licenses in several countries. It holds licences from 14 countries, including France, Italy, Spain, and Canada, according to the statement.
Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.