Binance CEO Changpeng Zhao Confirms They Had Their First Margin Liquidation
- Changpeng Zhao confirms the first Bitcoin short got liquidated after trading with margin
- Bitcoin price skyrocketed to over $11,300 during the last few days
Changpeng Zhao, the CEO of Binance confirmed that they had their first margin liquidation on June 23. This comes after the exchange decided to launch the margin trading feature a few weeks ago. Binance is one of the largest and most popular exchanges in the market.
Binance CEO Confirms Their First Margin Liquidation
According to the CEO of Binance, a short margin position on Bitcoin was liquidated on June 23. This comes after the meteoric price increase that Bitcoin experienced a few days ago. The digital currency surpassed $11,000 and it could continue growing in the future.
At the same time, Mr. Zhao issued a warning to bears in the market. He said that users should not bet against Bitcoin and against Binance Coin (BNB). Selected users did have access to margin trading since May, allowing them to trade digital assets with margin.
We had our first Margin liquidation today. Guess what, it was on a #BTC short.
Don't bet against bitcoin, and don't bet again b…
— CZ Binance (@cz_binance) June 24, 2019
With margin trading, investors can earn much more on their investments, but they can also get liquidated if the market does not behave as they expected. When the price of the most popular digital asset skyrocketed by 20 percent, over $500 million short positions on the BitMEX exchange got liquidated.
Binance is working in order to offer new services to users in the market. Investors would now be able to enjoy a decentralized exchange (DEX) and a renewed Binance platform. This is expected to attract a larger number of users to its platform and help investors place their funds in the space.
However, there are regulatory agencies that are trying to regulate exchanges and that are doing everything that is possible in order to keep their oversight in the space.