Customize Consent Preferences

We use cookies to help you navigate efficiently and perform certain functions. You will find detailed information about all cookies under each consent category below.

The cookies that are categorized as "Necessary" are stored on your browser as they are essential for enabling the basic functionalities of the site. ... 

Always Active

Necessary cookies are required to enable the basic features of this site, such as providing secure log-in or adjusting your consent preferences. These cookies do not store any personally identifiable data.

No cookies to display.

Functional cookies help perform certain functionalities like sharing the content of the website on social media platforms, collecting feedback, and other third-party features.

No cookies to display.

Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics such as the number of visitors, bounce rate, traffic source, etc.

No cookies to display.

Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.

No cookies to display.

Advertisement cookies are used to provide visitors with customized advertisements based on the pages you visited previously and to analyze the effectiveness of the ad campaigns.

No cookies to display.

Connect with us

Hi, what are you looking for?

slide 3 of 2
THE BIZNOB – Global Business & Financial News – A Business Journal – Focus On Business Leaders, Technology – Enterpeneurship – Finance – Economy – Politics & LifestyleTHE BIZNOB – Global Business & Financial News – A Business Journal – Focus On Business Leaders, Technology – Enterpeneurship – Finance – Economy – Politics & Lifestyle

Cryptocurrencies

Cryptocurrencies

After last year’s meltdowns, crypto investors limit risk.

Representations of cryptocurrencies are seen in front of displayed words "Cryptocurrency market" and decreasing stock graph in this illustration
Representations of cryptocurrencies are seen in front of displayed words "Cryptocurrency market... Representations of cryptocurrencies are seen in front of displayed words "Cryptocurrency market" and decreasing stock graph in this illustration taken November 10, 2022. REUTERS/Dado Ruvic/Illustration/File Photo
Representations of cryptocurrencies are seen in front of displayed words "Cryptocurrency market" and decreasing stock graph in this illustration
Representations of cryptocurrencies are seen in front of displayed words "Cryptocurrency market... Representations of cryptocurrencies are seen in front of displayed words "Cryptocurrency market" and decreasing stock graph in this illustration taken November 10, 2022. REUTERS/Dado Ruvic/Illustration/File Photo

Listen to the article now

After last year’s meltdowns, crypto investors limit risk. After the abrupt bankruptcies of Celsius Network, Voyager Digital, FTX, and others last year, cryptocurrency investors are wary of who they do business with, fearing a governmental crackdown may put more pressure on existing enterprises.

According to Xclaim, which trades creditor claims, the latest crypto platform bankruptcy froze $34 billion in client assets.
According to executives and industry data, institutional crypto investors are switching to exchanges with tighter asset protection, increasing trading partner due diligence, and conducting trades in smaller chunks to reduce risk.

“Investors in this asset class have learned their lessons the hard way and now are much much more picky about who to deal with,” said Samed Bouaynaya, digital asset portfolio manager at London-based hedge fund Altana Wealth.

Industry officials expect more enforcement proceedings after the SEC sued Binance.US and Coinbase Global (COIN.O). Binance and Coinbase refute regulator claims.
Altana currently prefers exchanges that allow it to settle and hold its assets with independent third-party custodians like UK-based Copper and U.S.-based Fireblocks. According to Bouaynaya, Altana rarely leaves balances at Binance overnight.

Binance stated last week that “customer funds are always safe.”

Coinbase claims its assets are safe and the SEC litigation will not harm its operations.

Anatoly Crachilov, CEO of London-based Nickel Digital Asset Management, said nearly all its trading now takes place on exchanges that allow off-exchange settlement, meaning the assets are finalized and kept separately from the exchange, compared to 5% before FTX collapsed.

Martin Lee, a data journalist at blockchain tracker Nansen, said declining stablecoin and ether exchange balances indicate that customers are abandoning their assets from exchanges.

“We have seen quite a significant increase in trading companies that are looking for a model to still be able to trade on exchanges, whilst being able to safeguard their capital,” said Stephen Richardson, Fireblocks’ managing director.

Copper claimed that off-exchange settlement demand was rising.


Comment Template

You May Also Like

Technology

On Friday, three sources said Apple and Meta Platforms will likely face prosecution for violating historic EU laws meant to limit their dominance before...

Finance

Here are a few million-dollar rare coins for coin collectors and individuals with small riches. Flowing Hair Silver Dollar, 1794. This rare 1794–1795 coin...

Business

Tesla shareholders approved Elon Musk’s $56 billion remuneration proposal, a vote of confidence in his leadership and an incentive to focus on the electric...

Technology

During a San Francisco event on Thursday, Republican presidential candidate Donald Trump positioned himself as a cryptocurrency champion while slamming Democrats’ attempts to regulate...

Notice: The Biznob uses cookies to provide necessary website functionality, improve your experience and analyze our traffic. By using our website, you agree to our Privacy Policy and our Cookie Policy.

Ok