The Wall Street Journal has reported that Binance is facing pressure from US regulators, leading to its vulnerability.
While at one point the platform processed 70% of all transactions in the crypto market after the collapse of FTX, it has now decreased to 50%, according to Kaiko.
In order to prepare for a potential downturn in business, Binance has dismissed over a dozen top managers and 1,500 employees.
Co-founder He Yi stated that they have been successful before and need to stay strong to continue their success.
The consequences of Binance’s struggles will have a significant impact on the crypto industry due to its large market share, according to journalists.
Other players are ready to step in and take over the platform’s market share, but in the short term, there may be less liquidity and lower prices in the market.