From our interactions, some countries want a segregated orderbook (liquidity). This is a BAD IDEA for a number of reasons.
Large liquidity is one of the best Consumer Protection mechanisms. It protects against market manipulation, volatility, and reduces liquidations.
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Large liquidity is one of the best Consumer Protection mechanisms. It protects against market manipulation, volatility, and reduces liquidations.
1/5
2/ Imagine if we divided the liquidity by 180 countries. It will make it 180x easier for large traders to swing the markets, and significantly increase the volatility.
3/ There will be arbitrage traders trying to bring the prices to balance, but they are not nearly as efficient as one orderbook. And they make money in between (which is paid by the consumers).
4/ Another misunderstanding people sometimes have: on an exchange, users donβt choose a counterparty. They just trade with the orderbook. You can think of the orderbook as a broker.
Large liquidity also offers better prices for users. Tighter spread. Lower slippage. This is also a very important form of Consumer Protection. Real financial impact for users.
#Binance has the largest liquidity by far, globally. The best user protection mechanism.
5/5
#Binance has the largest liquidity by far, globally. The best user protection mechanism.
5/5
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