Image source: Kaiko
The report pointed out that the transaction fees of major centralized exchanges are the lowest among OKX, Binance and Bybit. Bybit has mastered market share in recent years, which may be the basic condition, but it is not the main reason.
Image source: Kaiko
The report analyzed that Bybit’s transaction volume growth was driven by Bitcoin and Ethereum, whose market share increased from 17% to 53% since last year. In contrast, Binance’s trading volume in altcoins (altcoins) has grown significantly. As you can see in the figure below, Bybit’s transactions in major currencies have increased significantly.
Image source: Kaiko
In the derivatives market, where Bybit already has an advantage, it continues to maintain its second place. The report also believes that Bybit’s growth may benefit from Binance’s regulatory attention, thus gaining more market share. Just in June of this year, Bybit changed the strict style of mainstream exchanges against China's ban and opened up overseas Chinese to register and use it, which shocked many people.
Image source: Kaiko
Insider: Opening up Chinese users is a gamble, and four senior executives have resigned recently
According to people familiar with the matter, Bybit chose to expand its Chinese user base based on business growth. There are still risks under Chinese supervision (due to China’s strict ban on cryptocurrency). In addition, four senior executives have resigned recently.
People familiar with the matter said that Bybit currently has about 300 employees centered in Dubai, about 300 people in Singapore, and fewer in Hong Kong. It has more than 600 employees in mainland China. Due to Bybit's China policy, some departures may also occur, and the company has gradually transferred its mainland Chinese employees to Kuala Lumpur, the capital of Malaysia. He believes that if the Chinese government enforces laws on the mainland, relevant employees may be affected; Bybit's reopening of Chinese users can be said to be very bold.
A few days ago, Bybit CEO said that some media misreported layoffs, but in fact, they are still recruiting a large number of talents.
Source: X.com
New choices for currency industry players to survive: closer to regulation or actively going offshore
At present, many countries have clearer regulatory standards for VASPs (virtual asset service providers) such as exchanges and currency merchants. In the early days, Binance actively strived for compliance in various places, but was still traced by the United States.
In recent years, regulatory regulations in the European Union, the United Kingdom, Canada, Hong Kong, Southeast Asia and other places have become increasingly strict. Many well-known exchanges operating derivatives business have chosen to withdraw from the market and become business entities as offshore as possible. Bybit has withdrawn from Canada and the United Kingdom in the past, stopped cooperation with brokers due to KYC, and recently withdrew from the Hong Kong market. We can see the choices made by the industry.
Rather than working hard to comply with well-known brands like Coinbase and Binance, which are under strong Western supervision, it is better to go deep offshore, put the main body in Dubai, which is weakly regulated at the junction of the East and the West, and serve the public through the network that reaches far away. . For example, Telegram and TON, which originated from Russia, also settled in Dubai. Such a wealthy and regulatory-free place has instead become a new world under the oppression of strong Western regulation.
[Disclaimer] There are risks in the market, so investment needs to be cautious. This article does not constitute investment advice, and users should consider whether any opinions, views or conclusions contained in this article are appropriate for their particular circumstances. Invest accordingly and do so at your own risk.
This article is reprinted with permission from: Lian News