Crypto KOL: Binance being hacked may affect market makers, SOL and altcoin volatility is more severe

The cryptocurrency KOL Seven research stated that currently, the majority of the major funds and main margin accounts of market makers and quantitative institutions in the cryptocurrency market are on Binance. Many institutions are engaged in cross-exchange arbitrage or hedging, and the suspension of withdrawals by Binance could lead to a sudden halt in their capital chain.

Seven research mentioned that if the market continues to fluctuate violently, relevant institutions will be unable to withdraw funds from Binance to supplement margins elsewhere. To prevent liquidation, they will be forced to close positions on other exchanges and on-chain, forcibly pulling cash back. They also indicated that this is why the stolen assets were Ethereum-based, resulting in Solana and a bunch of altcoins dropping on the same day.