Binance exchange recently faced rumors regarding insolvency due to which hefty amounts of funds were withdrawn from the platform. This impacted the BNB price as well which dropped heavily by nearly 24%. This drop ignited ripple effects within the crypto space as most of the cryptos including the Bitcoin price dropped heavily marking a double-digit loss.
However, it was largely considered as a FUD as Binance is a very strong exchange and BNB token is a little more diverse than FTT. While Binance Coin is the native token of both the Binance Smart chain and Binance exchange, FTT is the native token of the FTX exchange only. Besides, there are some more features that keep Binance away from the crowd.
Accoding to nansen data BNB, the native token holds the 4th largest share within the reserves with 10.2%, while BUSD tops with 26.38%, followed by USDT with 21.61% and BTC with 14.94%
Besides, FTX exchange had a lot of loans which were taken with FTT as a collateral. This further coupled with the lack of strong organic demand for FTT and revelations about FTX’s misconducts intensified its downfall. Conversely, Binance has no loans with BNB as collateral and the strong fundamentals of the token isn’t anyway similar to FTT.
Overall, the Binance platform has been proved as the largest and the preferred platform and also has maintained trnasperency with the Proof-of-Reserves. Therefore, the platform may not experience the same fate as FTX and BNB price may rebound finely in the coming days.
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