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Commenting on the near-collapse of cryptocurrency exchange FTX Ganesh Viswanath Natraj is Assistant Professor of Finance, Warwick Business School, said: "Binance and FTX are two of the three largest centralised exchanges, the other one being Coinbase. One implication of the near-collapse of FTX is that as Binance increases its market share of crypto trading, additional liquidity on Binance means centralised exchanges continue to dominate decentralised exchanges like Uniswap. These exchanges rely on different models, with Binance having a limit order book, and Uniswap having algorithms to execute transactions."
"Which exchange dominates depends a lot on investor preferences, but as liquidity increases on Binance from absorbing FTX, Binance will offer more favorable liquidity and pricing for traders.
"FTX made a lot of loans to failing crypto companies and have agreed to be absorbed by Binance as part of a bail-out."
