despite being The largest cryptocurrency exchange in the world, however, Binance is struggling to maintain assets. In the wake of the collapse of rival exchange FTX, investors have pulled their cryptocurrencies in recent weeks.
Despite CEO Changping Zhao’s claim that the situation has stabilised, outflows are accelerating, with customers netting $360 million on Friday, according to data from cryptocurrency firm Defillama.
On Dec. 13, Nansen, a separate cryptocurrency data company, revealed that Binance had lost $3 billion in assets during the previous week, which at the time represented 4% of the company’s total assets.
A Forbes investigation revealed that Binance has lost 15% of its assets since Zhao posted a tweet on Twitter the same day downplaying withdrawals in the Nansen report.
In less than two months, departures have expanded, reaching about a quarter of the company’s assets, and Forbes estimated them at $12 billion, according to reviewed by Al Arabiya.net.
Investor distrust is most evident in the performance of “Binance Coin”, known as (BNB) and Binance USD (BUSD), which are the two symbols that bear the exchange’s name.
BNB has lost about 29% of its value in the last two months.
Forbes estimates that the cryptocurrency giant holds around 29 million of its coins on Binance, 51% fewer than the exchange revealed on Nov. 10.
While equity has declined 24% since November, investors in well-known tokens such as matic, bee and gala have reduced their equity on the stock exchange by 40-50%.
While it remains the largest cryptocurrency exchange by volume, Binance was not hurt by the nearly year-long decline in digital assets.
Its BNB token is down nearly 37% in the 12-month period, according to Nomics, and the exchange’s decision to stop charging fees for bitcoin spot trading has seen the company lose about $3 billion annually. year in lost earnings, according to Forbes estimates.
The total value of cryptocurrencies has shown an even bigger decline, falling 56% over the past year, to $848.7 billion, according to data from CoinMarketCap.
Zhao himself contributed to FTX’s demise in November when he announced on Twitter that he was planning to sell his rival FTX token holdings, worth around $580 million, citing “recent discoveries that have come to light.”
He followed that up with a bailout offer that was quickly reversed, arguing that “FTX’s problems are beyond our control or ability to help,” meaning that a first glance at the company’s books company has shown a more dire position than previously thought.
