HOW #SAFU IS YOUR EXCHANGE? 🤔 Here Is The Answer 👇
Liquidity becomes significant because it shows if the exchange has enough assets to cover its liabilities, including customer funds. Better avoid another FTX scenario right? As we can see from the image (source: nansen), Binance is the exchange more liquid, followed by OKX, Bybit, crypto.com and Kukoin. Common guidelines recommend that exchanges must maintain liquidity reserves equivalent to a certain percentage against their total assets value. This percentage can range from 10% to 30%. That could differ according to factors like: regulatory requirements, risk management practices and type of the assets. According to this range of percentage, crypto.com lacks on liquidity and thus investors could opt for another one. Traders also could opt for another one; so they will be able to execute their trades efficiently with more liquidity and consequently avoid significant price slippage.
Note that liquidity has been calculated considering all the stablecoins in their portfolios!
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