- More key executives have left Binance.US following the resignation of CEO Brian Shroder.
- Recent executive departures and layoffs have sparked predictions of the exchange’s closure.
- The predictions come as the business struggles to compete with plummeting volumes.
Earlier this week, these troubles saw the exchange engage in massive layoffs as its CEO, Brian Shroder, stepped down. With reports indicating that two more key executives have abandoned ship, experts are calling lights out.
Experts Predict Shutdown
On Thursday, September 14, the Wall Street Journal reported that Binance.US legal head Krishna Juvvadi and Chief Risk Officer Sidney Majalya were leaving the company, citing anonymous sources familiar with the matter.
The latest exits come less than two days after Shroder reportedly stepped down, and the firm confirmed cutting a third of its staff. The news has intensified speculations that the exchange could soon be forced to close its doors.
Responding to the recent executive exodus at Binance.US, Bloomberg Intelligence analyst James Seyffart concluded that the exchange was likely already “dead.”
Seyffart was not the only seasoned market observer to come to this conclusion. Zero Knowledge Consulting founder Austin Campbell asserted that Binance.US’s alleged impending closure was reasonably apparent.
Accomplice’s Jonathan Geenty opined that the exchange was struggling to compete amid the strains to its business brought on by legal troubles.
Dwindling Volumes and Market Share
Not long after the SEC lawsuit in June 2023, Binance.US was forced to suspend fiat deposit and withdrawal services as banking partners pulled away. Following the switch to a crypto-only model, the exchange has witnessed a significant dive in volumes, which has led to a corresponding dive in market share.
The Block data reveals that Binance.US’ monthly trading volume in 2023 has plummeted from a March high of $17.63 billion to $290.42 million in August. In June 2023, Kaiko revealed that Binance.US’ share of the U.S. market had dropped below 1% from over 22% in April.
On the Flipside
- Binance CEO Changpeng Zhao reportedly considered shutting down the exchange earlier in 2023.
- Binance.US claimed that recent layoffs gave the exchange a seven-year runway.
- The international Binance exchange is also experiencing an exodus of executives, with about ten top executives leaving in the past two months.
Why This Matters
Binance.US remains under significant strain following recent legal troubles. The departure of executives, layoffs, and dwindling volumes raise red flags about the future of the exchange.
Read this to learn more about the latest happenings in the SEC case against Binance.US:
Binance.US Condemns SEC’s “Overboard” Deposition Request
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