The CEO of Binance said this about the crypto markets these days. Here’s what Changpeng Zhao has to say about all this.
Binance’s CZ drops important news about the crypto markets
Changpeng Zhao, the chief executive of top crypto exchange Binance, made sure to recently say that dividing up crypto markets by country will likely spell volatility for digital assets.
Zhao suggests countries asking for “segregated order books,” meaning separate liquidity within their borders, risk boosting the volatility of crypto markets.
“Large liquidity is one of the best consumer protection mechanisms. It protects against market manipulation, volatility, and reduces liquidations.”
He continued and said this:
“Imagine if we divided the liquidity by 180 countries. It will make it 180x easier for large traders to swing the markets, and significantly increase the volatility.”
He also said the following:
“There will be arbitrage traders trying to bring the prices to balance, but they are not nearly as efficient as one orderbook. And they make money in between (which is paid by the consumers).”
The CEO also made sure to explain the fact that large liquidity provides better prices, tighter spread and lower slippage for customers.
“Another misunderstanding people sometimes have: on an exchange, users don’t choose a counterparty. They just trade with the order book. You can think of the order book as a broker.”
Check out the original article posted by the online publication the Daily Hodl in order to learn more details about all this.
The crypto market is struggling to recover following the latest corrections.
Despite the massive market volatility, there are all kinds of optimistic prediciotns popping up in the crypto space, and most of them involve Bitcoin.
At the moment of writing this article, BTC is trading in the green, and the king coin is priced at $23,343. Stay tuned for more news.