Users Want Transparency From Binance, Kraken And Bitget After FTX Collapse: Nansen

According to Nansen, cryptocurrency users are demanding more transparency and enhanced protection measures from Kraken, Bybit, Bitget and other CEXs, or centralized exchanges.

Since FTX collapsed, exchanges have increased their protection efforts, or started offering so-called Proof of Reserves.

Also Read: Stablecoin Scare - Tether Experiences Temporary De-Pegging Amid DeFi Imbalance

• Derivatives: Bitget, in particular, has experienced notable growth in derivatives volume over the past year. Both Binance (CRYPTO: BNB) and OKX have managed to sustain robust derivatives businesses.
• FTX (CRYPTO: FTT) Aftermath: Tokens such as MEXC Global (CRYPTO: MX), Bitget Token (CRYPTO: BGB) and OKX Token (CRYPTO: OKB) have seen strong price gains since FTX fizzled, signaling increased investor interest. The report states that successful exchanges must prioritize security, transparency and user trust/evolving needs.
• Regulatory Challenges: The U.S. Securities and Exchange Commission (SEC) crackdown on Binance could have far-reaching implications for CEXs worldwide. Nevertheless, CEXs are embracing new developments (i.e., the Web3 space, self-custody wallets, the burgeoning NFT market). Nansen adds that geographic diversification is crucial for exchanges to thrive.

Check out Nansen’s data on exchange reserves here.

Next: Trading Bot Uses $200M Flash Loan To Conduct Deals, Ends Up With Paltry $3 Profit