Considered as the “behind” manipulating FTX’s collapse, Binance was also affected by a sudden spike in BTC, ETH, stablecoin withdrawals,…
According to data from CryptoQuant, 81,712 Bitcoins (approximately $1.35 billion), or more than 15% of the 500,000 Bitcoins currently on the Binance exchange, have been withdrawn from the platform in the past 6 days. Additionally, 125,026 Ethereum ($155 million) and $1.14 billion stablecoin were also withdrawn from Binance during this time period.
The spike in user withdrawals is a common situation of the entire industry and exchanges in particular. Data from Coinglass shows that nearly 200,000 Bitcoins were withdrawn from exchanges in the past seven days, bringing the level of Bitcoin held on exchanges down to 1.88 million. Other crypto exchanges such as Coinbase (COIN), Gemini and Kraken also showed similar deficits as Binance.
Binance CEO Changpeng Zhao has reassured users and said that this amount is “nothing” compared to the number of assets that the exchange is holding. This is completely normal with a high volume exchange.
The massive withdrawal of money by users is said to be the result of the collapse of FTX, one of the top exchanges in the market. The crisis even spread to other platforms such as Gate.io, Crypto.com and Huobi after these exchanges were all found to have “shady” moves with accusations of “beautifying the books”. This happened when CZ Binance initiated the announcement of the trend of “statement” of existing assets to make information transparent to users.
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