It emerged earlier this week that cryptocurrency investors are massively withdrawing their money Binanza collected. Rumors circulated that the company was handling clients’ money reliably, which could lead to it suffering the same fate as the current bankrupt competitor FTX. Fortunately, the situation now appears to be somewhat under control. The’outflows‘ are starting to decline.
Much fear Binance customers
To reassure customers, Binance audits let do the bitcoins which manages for customers. But at the end of last week It was discovered that Binance uses some of these funds to provide leverage to other traders so they can trade debt. That would effectively leave him with a gap in the balance of around 4%. Users’ money may not be safe at all for this reason.
Customers have outgrown it massively withdraw their money from Binance, fearing that a possible Binance bankruptcy would create even more problems than that of FTX. Within 24 hours, the company saw $902 million evaporate. Not long after that it was even about $1.6 billion, and that was purely outflows on the Ethereum-Net. Outflows to other networks and current accounts are then added.
Binance had around $64 billion under its belt at the time, and is also the largest cryptocurrency exchange in the world in terms of volume. So the company is very important.
Panic on Binance is already easing
But now the fear is starting to subside, according to On-Chain Data Bloomberg he viewed. Data from blockchain analytics firm Nansen shows $239 million left over the past 24 hours, according to Bloomberg. That’s less than last week’s average, which was $272 million. Sure, it’s still a contraction for Binance, but it’s a tapering decline. This is a positive sign.
Even the American economic daily repeats something on-chain information from CryptoQuant also underlined. The amount that has left the cryptocurrency exchange in various ways is still tiny in relative terms. In total, there are a lot more resources around and not as many unexplainable things happen as with FTX. Perhaps the end of the chaos is in sight.
