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Binance CEO Unveils Dubai’s Crypto Rise & Lightning Network Ambitions

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Binance CEO Changpeng Zhao, commonly known as CZ, recently participated in an hour-long Twitter Spaces session where he addressed various topics and provided insights into the exchange’s operations and future plans.

Among the highlights of the session was CZ’s discussion on Dubai’s emergence as a global hub for crypto innovation and the exchange’s growing presence in the city.

CZ expressed his enthusiasm for Dubai, noting the significant growth in the number of crypto companies and the vibrant crypto events taking place there. 

He emphasized the city’s international appeal and its business-friendly environment, which has contributed to Binance’s rapid expansion. In just a year and a half, the exchange has gone from a few employees to over 700 in Dubai alone. CZ confidently stated that Dubai is already a crypto innovation hub and will continue to thrive.

During the session, CZ also advised caution to crypto newcomers when seeking advice from social media platforms. He stressed the importance of conducting thorough research and considering individual circumstances before making investment decisions.

CZ urged newcomers not to blindly follow advice from famous individuals on the internet, as personal factors and risk management play a crucial role in determining investment strategies.

Binance’s Non-Involvement In Mining

Regarding Binance’s involvement in the mining sector, CZ clarified that Binance does not engage in mining activities itself. However, the exchange operates one of the largest mining pools, offering miners access to low fees and utilizing Binance’s liquidity to cover operational costs. 

While mining is acknowledged as an important aspect of the industry, CZ stated that it is not the exchange’s core expertise, citing the complexities associated with hardware and other factors.

One topic of interest was Binance’s potential support for the Lightning Network, a layer-two scaling solution for Bitcoin. CZ explained that implementing the Lightning Network is not a simple process and requires careful security considerations. 

The Binance team is currently exploring solutions and may enable Lightning Network transactions for small amounts initially. CZ expressed the belief that every exchange will eventually need to support the Lightning Network due to its cost-saving benefits and faster transaction speeds.

However, CZ’s Twitter Spaces session provided valuable insights into the exchange’s growth, its stance on mining, and its plans for implementing the Lightning Network. 

As Binance continues to expand its presence in Dubai and explore innovative solutions, the crypto community eagerly awaits further developments from the leading exchange.

Related Reading | Coinbase Launches Institutional Bitcoin & Ether Futures On Derivatives Exchange

8.96M Tweets: FLOKI Unleashes Twitter Frenzy, Joins KuCoin In Trending Titans

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The meme coin sensation, FLOKI, has once again taken the Twitterverse by storm. The self-proclaimed “dogecoin killer” has achieved a staggering 8.96 million mentions, catapulting it into the realm of trending topics alongside the leading cryptocurrency exchange, KuCoin. 

This remarkable surge in social media buzz comes as no surprise to avid followers of the token, as the token has been steadily gaining popularity over the past few weeks.

The initial spark that ignited its upward trajectory on Twitter occurred on May 25th when the coin amassed an impressive 3.39 million mentions. Comparatively, other meme coins like SHIB lagged far behind with a paltry 45.6k mentions. 

This surge in popularity coincided with significant developments, namely its strategic partnership with DWF Labs, a prominent digital asset market maker and multi-stage web3 investment firm. 

DWF Labs invested a remarkable $5 million in the tokens, solidifying the coin’s potential and hinting at a promising future for its ecosystem.

Adding to the coin’s newfound success, Bitvavo, the largest crypto exchange in the Netherlands and a prominent player in Europe, recently announced the token’s listing. This listing further solidifies FLOKI’s position within the cryptocurrency market and opens up new avenues for its growth and adoption.

New Announcement: FLOKI’s Marketing Partnership with Binance Pay

However, the current surge in Twitter mentions can be attributed to a series of recent announcements. The first of these is its strategic marketing partnership with Binance Pay, a collaboration aimed at boosting the adoption of FLOKI by leveraging Binance Pay’s extensive reach and user base.

Commencing on June 1st, 2023, a new campaign has been rolled out to incentivize users to make purchases using the token through Binance Pay. Individuals who spend at least $1 worth of goods using the token through Binance Pay from eligible Binance Marketplace merchants will be rewarded. 

This strategic partnership highlights its determination to establish itself as a viable payment option in the cryptocurrency realm. In yet another exciting development, FLOKI users can now utilize the token on AliExpress through shopping_io. This collaboration enables users to purchase from a vast selection of over 100 million items and enjoy shipping to over 200 countries. 

This expansion of usability adds another layer of convenience and utility to FLOKI, bolstering its potential as a mainstream digital currency.

As FLOKI continues to make waves in the cryptocurrency market, it is evident that the token’s journey is far from over. 

With its skyrocketing popularity on Twitter, strategic partnerships with industry giants, and increased usability, FLOKI is positioning itself as a force to be reckoned with in the ever-evolving world of cryptocurrencies. 

The Resilient Rise: Tether USD₮ Breaks Records With $83.2 Billion Market Cap

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Tether USD₮, the pioneering stablecoin, has achieved a new milestone by surpassing its previous all-time high market capitalization of $83.2 billion, according to a recent blog post by Tether. This achievement highlights the growing demand for financial freedom and the trust users have in Tether’s stablecoin.

Paolo Ardoino, the Chief Technology Officer of Tether, expressed his enthusiasm about the achievement, stating, “Today’s numbers demonstrate that people want access to financial freedom, and when given that access, they will make use of it.” 

Ardoino emphasized the importance of Tether tokens in providing a secure haven for unbanked individuals in emerging markets, allowing them to retain their purchasing power even in the face of devaluing national currencies. He further stressed the company’s commitment to expanding global access to financial freedom.

Since its inception in 2014, Tether’s USD₮ stablecoin has become the most traded cryptocurrency, surpassing all competitors combined. By combining the advantages of digital currency, such as instant global transactions, with the stability of the traditional currency, the company offers a fast and cost-effective method of transacting with money.

Impressive Q1 Performance Bolsters Tether’s Reserves

The company’s recent attestation highlights its dedication to transparency and its focus on emerging markets as a safe haven from volatile conditions. Additionally, the company reported an impressive net profit of $1.48 billion in Q1 of this year, further strengthening its reserves. 

With approximately 85% of its cash and cash equivalents investments and a 20% increase in token supply quarter over quarter, the company has firmly established itself as a trustworthy entity with a promising future.

In response to the news, Binance CEO Changpeng Zhao (CZ) tweeted about the growth of USDT and mentioned that another stablecoin, BUSD, had been capped by NYDFS at $23 billion. CZ highlighted the remarkable growth of USDT since then.

In other related news, Binance recently announced the integration of Tether (USDT) on the Arbitrum One and Optimism networks, opening up new user possibilities. Tether (USDT) deposits are now available on both networks, with withdrawals to be enabled once sufficient deposits are made.

However, as the company continues to make strides in the crypto world, its dedication to providing a secure and accessible financial ecosystem remains unwavering.

Related Reading | Ethereum’s Gas Fees And Supply On Exchanges Hit Historic Low 

Binance’s Fight Against North Korean Crime: $4.4M Seized

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Binance, the world’s largest crypto exchange, has aided US law enforcement in seizing and freezing millions of dollars from accounts associated with North Korean organized crime. 

A recent press release announced that the exchange’s investigations team had collaborated with US authorities to take action against individuals linked to criminal activities in North Korea.

The exchange proudly declared its contribution in a tweet, stating:

We are proud to have assisted US law enforcement in seizing $4.4M and freezing accounts linked to North Korean organized crime.” 

Binance applauded its law enforcement partners and investigations team for their unwavering dedication to combating crime globally. It emphasized that it had proactively acted against these accounts over a year ago, following legally served warrants and in close coordination with authorities.

According to the US Department of the Treasury, the Office of Foreign Assets Control (OFAC) has sanctioned several entities and one individual involved in criminal cyber activities that support the Democratic People’s Republic of Korea (DPRK) government’s goals. 

The Treasury highlighted the DPRK’s extensive illicit cyber operations, which generate funds for unlawful weapons development, including ballistic missiles.

Additionally, Under Secretary of the Treasury for Terrorism and Financial Intelligence, Brian Nelson underscored the importance of curbing the DPRK’s illicit revenue generation activities. 

He emphasized the United States’ commitment, along with its partners, to combat the regime’s ongoing efforts to steal money from financial institutions, virtual currency exchanges, companies, and individuals worldwide.

Binance: Blockchain’s Role in Exposing Illicit Financial Operations

Moreover, Binance’s head of Financial Crimes Compliance, Tigran Gambaryan, also expressed his motivation for joining the cryptocurrency industry, citing the technology’s transparency as a tool for catching criminals.

Gambaryan, who had a background in law enforcement and IRS criminal investigations, recognized the opportunities presented by the crypto world. 

Throughout his career, he has contributed to catching criminals involved in various illegal activities, such as child abuse, drug trafficking, and public corruption, thanks to cryptocurrency’s transparency.

Matt Price, Binance’s global head of intelligence and investigations, debunked the misconception that cryptocurrencies are anonymous. He explained that the public record of blockchain transactions makes it easier for investigators to identify individuals involved in illicit activities. 

Price emphasized that investigators utilizing their lawful powers and investigative tools find tracking and tracing crypto-related crimes more convenient than traditional financial investigations.

Nevertheless, Binance’s collaboration with US law enforcement demonstrates the potential for the cryptocurrency industry to combat illicit activities actively.

However, as regulatory measures continue to strengthen, exchanges like Binance are working closely with authorities worldwide to prevent crimes and take action against bad actors. 

Related Reading | Litecoin Price Surges Before Halving as AltSignals Raises $876k During Presale

Floki & Binance Pay Join Forces In Revolutionary Crypto Campaign

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In an exciting development for the crypto community, Floki has launched a strategic marketing partnership with Binance Pay, according to a recent Medium blog post. The collaboration aims to boost the adoption of Floki by leveraging Binance Pay’s extensive reach and user base.

Starting today, June 1, 2023, a new campaign will be rolled out, designed to incentivize users to make purchases using Floki through Binance Pay. The campaign rewards individuals who spend at least $1 worth of goods using the token through Binance Pay from any eligible Binance Marketplace merchants.

Binance Pay, renowned as the leading crypto payment service provider, will play a pivotal role in facilitating Floki’s merchandise store transactions. As part of the strategic partnership, Binance Pay has crafted a special campaign that will run throughout the month, from June 1 to June 30, 2023.

To maximize the campaign’s impact, Binance Pay will promote it across multiple channels, including the Pay homepage, social media platforms, and other strategic outlets. 

Both intend to amplify the partnership’s significance by announcing and featuring the campaign on their respective social media platforms. Additionally, Floki will showcase the campaign on its official website, ensuring maximum visibility for this exciting collaboration.

FLOKI’s Enhanced Utility as a Payment Token

This strategic marketing partnership not only bolsters its utility as a payment token but also provides it with targeted exposure through the joint efforts of Binance Pay’s marketing team. 

Binance App, the most popular crypto app globally, has amassed over 50 million downloads on the Google Play Store and a significant number of downloads on the Apple Store, further enhancing this collaboration’s potential reach and impact.

However, by aligning forces with a reputable and influential platform like Binance Pay, it aims to solidify its position and expand its user base. As the campaign gains momentum, it is expected to foster greater awareness, adoption, and usage of the token, ultimately driving its growth and market value.

The crypto community eagerly anticipates the outcomes of this groundbreaking partnership as Floki and Binance Pay set the stage for a new era of crypto adoption and utility.

Related Reading | XRPL Pioneer Reveals Groundbreaking Trading Approach

Binance’s Exit Boosts Kraken’s Popularity Among Canadian Crypto Traders

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Kraken has experienced significant benefits from its decision to remain operational in Canada, especially in light of the withdrawal announcements by competitors like Binance and OKX.

Following Binance’s announcement in early May, Kraken witnessed a 25% growth in customer deposits within the country. Additionally, when OKX revealed its plans to leave in March, Kraken observed a fivefold surge in downloads of its two mobile apps among Canadian clients within a week.

Earlier this year, Canada implemented stricter regulations for digital asset trading, prompting several major cryptocurrency exchanges to exit the market. In addition to Binance, OKX, Paxos, Blockchain.com, and Deribit also announced their departures. The most recent departure occurred earlier this week when Bybit made its exit.

Similar to Kraken, Coinbase (COIN), an exchange listed on Nasdaq, expressed its willingness to comply with Canada’s enhanced Pre-Registration Undertaking (PRU). In contrast to the regulatory ambiguity in the United States, Coinbase even expressed its appreciation for collaborating with a regulator that the company could actively engage with.

Kraken, on the other hand, has established a presence in Canada for over a decade. With a team of over 250 employees in the country, Kraken has been operating as a money services business since 2019. Mark Greenberg, the firm’s managing director for Canada, highlighted these facts.

Kraken’s adeptness in adapting to the changing regulatory landscape and offering a compliant platform has made it a compelling choice for Canadian traders. The notable increase in customer deposits and the rising number of app downloads among Canadian users signify a growing confidence and preference for Kraken as a trustworthy and regulated cryptocurrency exchange.

Greenberg expressed his positive view of the Canadian regulatory approach, stating, “I think the Canadian regulatory approach works for us.” He highlighted the aspects that Kraken appreciates, such as the emphasis on security of customer assets, which aligns with their longstanding practices. However, he also acknowledged certain aspects that are less favorable, such as trading and margin limitations.

One of the recently introduced and demanding provisions by the Canadian Securities Administrators (CSA) for crypto exchanges is the mandatory requirement for firms to hold a significant portion of client assets with a third-party custodian.

Kraken’s Review

PRO’s :

  • Good Option For Staking: Stake up to 14 cryptocurrencies on one the most secure crypto exchanges in the industry
  • Low Spreads & High Liquidity: 0.05% spread for Bitcoin which was 4th place when tested on Mar 2, 2022
  • Great Place to Cash Out CAD: Kraken scored 2nd best overall for selling BTC to CAD
  • Pro Trading: Powerful trading platform with many trading pairs, different order types, live order books margin and more
  • Best Reputation: Kraken has never had any hacks or incidents and it’s also one of the oldest platforms founded in 2011. They take security very seriously

CON’s :

  • Deposit Fees: Has e-transfer and wire transfer but it is not free like many other Canadian platforms
  • Total BTC Purchase Fee: 1.60% total fee when tested which was 7th overall. If you want to buy crypto with CAD, there are cheaper options out there like NDAX and Newton
  • Geo Restrictions: Some features and coins are restricted for Canadian residents (eg. Futures trading)
  • Not the Most Beginner Friendly: Much easier platforms are available in Canada like Newton or Shakepay

Binance’s Strategic Talent Reallocation Amidst Layoffs & Regulatory Challenges

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Binance, the world’s largest cryptocurrency exchange by trading volume, has reportedly initiated a series of layoffs, according to a recent report.

While the exact proportion of the affected workforce remains uncertain, sources familiar with the matter have suggested that the number could be significant. 

With approximately 8,000 employees, market rumors indicate that the layoffs in June could account for around 20% of Binance’s workforce.

Compensation plans for the affected employees will be formulated based on various factors, including geographical location. Interestingly, despite the ongoing layoffs, certain departments within Binance are continuing their recruitment efforts.

It is speculated that these layoffs could be attributed to the challenging overall market conditions and the company’s rapid expansion in the past.

Binance Clarifies: Not Rightsizing, But Strategic Talent Reallocation

Binance responded to the news, clarifying that this was not a case of “rightsizing” but rather a strategic reallocation of talent. The company emphasized that it would still be actively seeking to fill hundreds of open positions, highlighting its commitment to growth.

The exchange stated that they periodically review their talent allocation and resources to ensure the right fit for their teams, which sometimes necessitates parting ways with underperforming employees or those who do not align with the organization’s culture.

The declining market share of the exchange over the past few months has raised concerns within the industry. This downward trend has coincided with a decrease in overall trading volumes, signaling potential challenges for the exchange. 

Furthermore, Binance’s market share decline may have been influenced by recent regulatory actions taken against the company and its CEO, Changpeng Zhao, by U.S. authorities in March.

Despite these setbacks, the exchange remains optimistic about the future. The company spokesperson reaffirmed their unwavering commitment to their users, asserting that user satisfaction remains their top priority. 

Additionally, the exchange expressed enthusiasm for the ongoing growth within their organization, citing strong new user registrations and a promising pipeline of innovation across the Binance ecosystem.

However, as the crypto landscape continues to evolve, Binance faces the task of navigating regulatory challenges while maintaining its position as a leading exchange. 

The impact of these layoffs, coupled with the company’s strategic reallocation of resources, will likely play a significant role in shaping Binance’s future trajectory.

Related Reading | Powering The Future: Tether Ventures Into Sustainable Bitcoin Mining In Uruguay

Bybit Bids Farewell To Canada Amid Regulatory Challenges

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Bybit, one of the leading crypto exchanges, has decided to halt operations in Canada due to regulatory challenges. The move comes after the Canadian Securities Administrators (CSA) issued new guidelines in February, requiring crypto asset trading platforms to obtain approval and undergo due diligence checks.

Bybit Outlines Products Affected by Closure

In a recent blog post, Bybit stated that its top priority has always been to comply with relevant rules and regulations in Canada. However, in light of the recent regulatory developments, the exchange has made the difficult but necessary decision to pause its services and products in the country.

Effective May 31, 2023, Bybit will cease accepting new account opening applications from Canadian residents or existing Canadian customers. Additionally, starting from July 31, 2023, existing customers will encounter certain limitations.

Users will lose the ability to initiate fresh deposits, engage in new contractual agreements, or augment their current holdings. Nevertheless, they will retain the option to withdraw funds or decrease their positions.

To ensure a smooth transition, Canadian customers affected by these measures are advised to wind down and manage their positions by September 30, 2023. 

Failure to do so will result in liquidating their open positions in margin products and derivative contracts, including spot trading, leverage tokens, and future contracts, among others.

Bybit’s decision to exit the Canadian market reflects the challenges crypto exchanges face in navigating the evolving regulatory landscape. The regulatory requirements set by the CSA aim to enhance investor protection and ensure compliance within the crypto industry. 

However, these guidelines have led to operational adjustments for several exchanges, including Binance, which recently suspended its services in Canada.

Bybit emphasizes its commitment to providing crypto enthusiasts with a safe and sustainable trading experience amid the growing adoption of cryptocurrencies. The exchange acknowledges the inconvenience caused by the decision but expresses gratitude for the continued support of its users.

As the regulatory environment continues to evolve globally, crypto exchanges face the ongoing challenge of balancing compliance with innovation and user experience. 

The actions taken by Bybit and other exchanges highlight the importance of adapting to regulatory changes while striving to maintain a secure and user-friendly trading environment.

Related Reading | Dogecoin and SHIB: Examining the Fundamental Contrasts Between Them

Bitcoin Trading At Steep Discount On Binance Australia As Traders Rush To Cash Out

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Bitcoin is experiencing a substantial price drop on the Australian branch of the Binance crypto exchange. Reports indicate that the leading cryptocurrency has plummeted by as much as 21% when traded against the Australian dollar. 

This sudden decline has prompted traders to scramble and cash out their crypto holdings into Australian dollars before the imminent closure of local bank withdrawals.

The trouble began on May 18 when Binance Australia announced the suspension of its Australian dollar services following a decision made by its third-party payments provider. 

Immediate repercussions were seen as deposits via bank transfer came to a halt. However, PayID service withdrawals are still permitted until June 1 at 5 pm local time. 

Concerns are mounting among Australian clients as the exchange has warned that any remaining Australian dollars on the platform after May 31 will be automatically converted into USDT, further fueling the rush to cash out.

Reduced Liquidity In Australian Dollar Pairs Cited As Cause By Binance

Binance has attributed the trading discounts of Bitcoin and other digital assets on its Australian platform to reduced liquidity in Australian dollar pairs. 

In a statement, a spokesperson for the exchange explained that the anticipation of the platform’s AUD withdrawal services suspension, referred to as the “off-ramp closure,” has prompted users to withdraw their AUD holdings, resulting in reduced liquidity and impacting prices.

As a consequence of the impending closure, Binance Australia will be delisting the remaining AUD pairs. However, the exchange remains committed to securing additional fiat relationships to serve its users better.

Australian crypto traders are currently seizing the opportunity presented by the massive arbitrage available from the price discount. 

Data from CryptoCompare reveals that Bitcoin is trading at AUD 34,250 (USD $22,345) on Binance Australia, significantly lower than its counterparts on IndependentReserve, Luno, and Kraken, where it is being exchanged for over AUD 42,000 (USD $27,401). 

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This pattern is also evident with other digital assets like Ethereum, which is trading at AUD 2,375 on Binance Australia, compared to over AUD 2,900 on rival exchanges.

However, the discount in prices has created a frenzy within the Australian crypto community, as traders scramble to take advantage of the unique opportunity before it disappears. 

While Binance Australia’s decision has caused temporary disruptions, the future remains uncertain as the crypto industry continually adapts to new challenges and opportunities.

Related Reading | Bitcoin Whales Pivot to DigiToads (TOADS) Amid Growing Confidence 

72% Dominance: Kaiko’s Ethereum Liquidity Report Unveils Exchange Concentration

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Kaiko, a leading cryptocurrency market data provider, has released its latest research report, shedding light on the liquidity landscape of Ethereum (ETH) and highlighting the dominance of a few key exchanges. 

The report indicates that 72% of ETH liquidity is concentrated on just five exchanges, marking a significant shift since the collapse of FTX last year.

Following the demise of FTX, the crypto market has faced challenges in maintaining adequate liquidity for assets. The shutdown of the Signet and SEN fiat settlement networks in the US severely impacted the operational efficiency of market makers. 

It has been reflected in Ethereum’s 2% market depth, which experienced a decline in March and has struggled to recover to pre-FTX levels. 

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However, the .1% depth, which measures liquidity around the mid-price, has rebounded to surpass pre-FTX levels as market makers regain confidence in offering liquidity within a tight range.

The study highlights the concentration of order book liquidity on a handful of exchanges since FTX collapsed. 

Ethereum: Shift in Liquidity from US-available Exchanges

Binance, Bitfinex, OKX, Coinbase, and Kraken collectively account for 72% of Ethereum’s market depth, while the remaining 41 exchanges represent only 28%. Before FTX’s collapse, the exchange and its US counterpart accounted for nearly 40% of the market depth.

Interestingly, the research also reveals a shift in liquidity away from US-available exchanges over the past year. The share of market depth on US exchanges has decreased to around 40%, down from a high of 54% before the collapse of Terra last May. 

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Global exchanges have benefited from regulatory crackdowns, attracting market makers seeking to avoid uncertainty.

Looking ahead, the report suggests that liquidity consolidation on a limited number of exchanges may continue for all assets, not just Ethereum, as the exchange space grapples with attracting market makers during an ongoing bear market.

In addition to the liquidity analysis, the report covers other notable trends in the crypto market. It discusses the stability of stablecoins amid the US debt ceiling drama, the outperformance of Curve DAO (CRV) and Synthetix Network (SNX) in the DeFi sector, the decline in MakerDAO’s liquidity following a large transfer to Binance, and the potential opportunities for OKX in Hong Kong’s upcoming virtual asset licensing regime.

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The insights provided by Kaiko’s research offer valuable information for investors, traders, and industry participants seeking to navigate the ever-evolving crypto market.

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