Every crypto exchange faced liquidations during the liquidation event on October 10, Richard Teng reported at the Consensus Hong Kong conference organized by CoinDesk.
Binance was not the cause of the liquidation event in the cryptocurrency market on October 10, but all exchanges — both centralized and decentralized — faced massive liquidations that day after China imposed controls on rare earth metals and the U.S. announced new tariffs, said Binance co-head Richard Teng.
About 75% of liquidations occurred around 9:00 PM Eastern Time, against the backdrop of two unrelated, isolated issues: the devaluation of the stablecoin and "some delay in the asset transfer plan," Teng said Thursday at the CoinDesk Consensus Hong Kong Conference.
"The US stock market lost 1.5 trillion dollars in value that day," he said. "Only the US stock market recorded liquidations totaling 150 billion dollars. The crypto market is significantly smaller. Its volume was about 19 billion dollars. And liquidations in the crypto market occurred on all exchanges."
Some users were affected by this, and Binance provided them with support, as he noted, which other exchanges did not.
Binance provided a trading volume of 34 trillion dollars last year, he stated, with 300 million users. Trading data does not indicate massive withdrawals from the platform.
"The data speaks for itself," he said.
Speaking more broadly, Teng noted that the crypto market follows general geopolitical tensions, however, institutional investors continue to actively invest in this sector.
At the macro level, in my opinion, people still feel uncertainty regarding future changes in interest rates," he said. "Additionally, there is always a tendency of geopolitical tensions and other factors. All of this affects assets such as cryptocurrency.
However, pointing to changes in the sector over the last four to six years, Teng noted that long-term participants in the industry have noticed the cyclicality of cryptocurrency price movements.
"I believe we need to pay attention to fundamental developments," he said. "At this stage, retail demand has somewhat decreased compared to last year, however, institutional investments and corporate investments remain high.
Institutional investors continue to enter the sector, despite the state of the market, he noted, "which means that smart money is actively investing."
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