Crypto Exchange MEXC witnesses increase in Trading volumes, admits to the crypto crash
Recently, the liquidity crisis of the trading platform FTX caused panic in the entire cryptocurrency market, with BTC and ETH falling 37% and 56% respectively for five consecutive days.
Violent market volatility is a wake-up call for the crypto industry, and the transparency of user assets in centralized exchanges has once again become the focus of attention. Exchanges such as MEXC and Binance have announced that they will disclose the certificate of reserves soon. Recently, the liquidity crisis of FTX exchange has caused panic in the entire cryptocurrency market, with BTC and ETH falling 37% and 56% respectively for five consecutive days.
Binance CEO CZ recently tweeted: “All crypto exchanges should do merkle-tree proof-of-reserves. Banks run on fractional reserves. Crypto exchanges should not. Binance will start to do proof-of-reserves soon. Full transparency.”
MEXC said: “Ensuring the safety of user funds and 100% redemption is the most basic bottom line of the industry. We have always adhered to the service tenet of “Customer First” and have established a strict user reserve system at the beginning. We will never misappropriate user assets to conduct risky businesses such as wealth management, DeFi mining, and pledge loans on other platforms. We will also support large amounts of withdrawals and quick transfers to ensure 100% safe payment of user assets.”
According to the data of Nasen on November 10, MEXC is the only centralized exchange that has recently achieved a net inflow of funds. MEXC tweeted: “The user’s choice is the best vote of confidence. MEXC has already started to prepare the Merkle tree reserve certificate, and will publish the relevant data soon. MEXC keeps insisting on providing more secure and transparent transaction services for the 10 million registered users worldwide.”
Data source: Nasen
In terms of transaction volume, affected by unfavorable market factors, the transaction volume of major Exchanges has shrunk to a certain extent recently while MEXC has performed quite well recently, with its contract and spot trading volumes rising significantly. According to CoinMarketCap data, MEXC’s spot 24-hour trading volume was $20.468 billion, second only to Binance’s $40.422 billion. MEXC’s contract 24-hour trading volume was $67.184 billion, and Binance was $134.215 billion. Both MEXC contract and spot trading volumes ranked second in the entire network.
Data shows that funds in the crypto market are migrating to MEXC, and some users are looking for a more secure trading platform to store and trade funds.
There is no need to panic about the occurrence of a “Black Swan” event. Whether it is the liquidity crisis of FTX, the explosion of 3AC, or the 312 Black Swan Event in 2020, they are all inevitable events under the law of the market cycle. We can only see the real bottom during the emergence of these “black swans”, and only after the bubble bursts, cryptocurrency can gradually move from a reasonable value to a new bull market cycle.
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