On February 12, Binance co-CEO Richard Teng stated at the Consensus Hong Kong conference that the crypto market liquidation event on October 10 (1011) was not caused by Binance, but after China implemented rare earth metal controls and the United States announced new tariffs, every trading platform (whether centralized or decentralized) experienced a large-scale liquidation that day.
Richard Teng stated that approximately 75% of the liquidations that day occurred around 9:00 PM Eastern Time, accompanied by two unrelated and isolated technical issues: the de-pegging of the stablecoin USEE, and "some delays in asset transfers."
"The U.S. stock market lost $1.5 trillion in market capitalization that day," Richard Teng said. "The U.S. stock market alone saw a liquidation of $150 billion. The crypto market is much smaller, at about $19 billion."
"At the macro level, I think people remain uncertain about the future direction of interest rates," said Richard Teng. "Geopolitical trends and tensions persist. These factors do put pressure on assets like crypto. I think we should focus on the underlying developments. At this point, retail demand has indeed weakened compared to the past year, but institutional and corporate deployments remain strong."
Richard Teng added that even with unfavorable market conditions, institutions continue to enter this sector – “which means smart money is coming in.”
