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.

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• Derivatives: Bitget, in particular, has experienced notable growth in derivatives volume over the past year. Both Binance BNB/USD and OKX have managed to sustain robust derivatives businesses.
• FTX FTT/USD Aftermath: Tokens such as MEXC Global MX/USD, Bitget Token BGB/USD and OKX Token OKB/USD 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.

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