The largest crypto exchange on the planet Binance has suffered a massive withdrawal from users, amounting to 831 million USD in the past 24 hours.
Binance continues to face a wave of withdrawals
By blockchain data unit Nansenthere was about 831 million USD “escape” from Binance in the last 24 hours.
Specifically, users withdrew about $2.8 billion in digital assets in the previous day, far ahead of $2 billion in deposits in the same frame of reference.
However, currently, Binance is still holding more than 70 billion USD of user assets, of which the majority are BNB (25.05%), USDT (21.28%), BUSD (18.96) %), BTC (15.06%), ETH (9.64%) and the rest are other altcoins. It can be seen that the two Binance-branded coins, BNB and BUSD, are accounting for more than 43% of the value of user assets stored by the exchange.
This is also the largest amount of money out of Binance since last November when FTX went bankrupt and the time when FUD surrounded the floor in December 2022. At that time, net flow (Netflow), the difference between the amount of assets coming in/depositing (Inflow) and going out/withdrawing (Outflow) from Binance reached 902 million USD in 24 hours.
Now, panic continues to prevail over investors after the crackdown on stablecoin Binance USD (BUSD) issued by Binance in partnership with Paxos since 2019.
As Kyptos reported, the New York Department of Financial Services has ordered Paxos to stop printing new BUSD, after the U.S. Securities and Exchange Commission (SEC) sent a notice preparing to prosecute the stablecoin as “security disguised securities”. Born under the name Binance, BUSD is currently the 3rd largest stablecoin by market capitalization and accounts for 35% of the total trading volume on the world’s largest crypto exchange.
Binance reserves are “tested on fire” again
The regulatory action is severely damaging the exchange as BUSD is the largest asset in Binance’s reserves (at around $13.4 billion) after Tether’s USDT, Nansen reflected. This holding represents 22% of the $60 billion in assets on Binance.
$3 billion worth of BNB represents nearly 5% of the exchange’s total assets, although Arkham Intelligence estimates the figure is much higher, possibly as high as $6.9 billion.
As usual, the Binance boss recently continued to post on the forum that the controversy surrounding FUD but FUD is just like “the wind blowing through the clouds”, implying that everything will soon return to the old trajectory.
FUD is temporary. pic.twitter.com/O2ntcjn2HJ
— CZ Binance (@cz_binance) February 14, 2023
In addition, there is a flow that the current crackdown is paving the way for the top stablecoins to re-establish a new order.
Since the bankruptcy of FTX, Binance has been at the forefront of providing proof of ownership of user assets and launching an industry-wide movement. Binance claims to always ensure the safety of over $70 billion in customer assets. In response to a question about the debt audit report, Binance CEO Changpeng Zhao stated that the exchange “does not owe anyone”.
However, until the end of 2022, Binance was hit with a series of bad news, when there were allegations of aiding money laundering and violating sanctions from US authorities. Before this news, many individuals to large institutions rushed to withdraw their funds, leading to the BUSD being depeg and Binance halting USDC withdrawals due to lack of liquidity. However, appearing in an AMA later, Mr. Zhao still calmly said that this is a normal market reaction, Binance is still financially strong to handle any bad developments.
Thanks to the impressive recovery of the crypto market in January 2023, the amount of money deposited on Binance has increased sharply and is back to the level of early December. Binance CEO at the time stated that the “fire test” for Binance. Binance is over and the world’s largest crypto exchange is still standing as a result.
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