Investing.com – Binance, the world’s largest cryptocurrency exchange, is struggling to hold on to assets. Since the collapse of rival exchange FTX, investors have been withdrawing their cryptocurrencies in recent weeks, and despite CEO Changpeng Zhao’s assurances that the situation has stabilized, the outflow of funds is accelerating. Clients withdrew $360 million on Jan. 6, according to crypto data company Defillama. writes Forbes.
On Dec. 13, Nansen, a cryptocurrency data collection firm, reported that Binance had lost $3 billion in assets over the previous week, which was 4% of the company’s total assets at the time. A Forbes USA investigation found that, in fact, Binance lost 15% of its assets almost immediately after Zhao (commonly known as CZ) posted on Twitter (NYSE:) in which he understated the withdrawal amount from the Nansen report. However, almost a quarter of Binance’s assets were withdrawn from the exchange in less than two months.
Investor distrust is best seen in (BNB) and (BUSD), two tokens that bear the name of the exchange. Over the past two months, BNB has lost 29% of its value, and Forbes USA estimates that there are about 29 million tokens left on Binance, which is 51% less than what was announced by the exchange on November 10. Meanwhile, the number of BUSD stablecoins on the exchange has dropped by 40%.
There are also more subtle events that cause Binance to lose credibility and influence. While net assets have fallen by 24% since November, investors in well-known tokens such as matic, ape and gala have reduced their holdings on the exchange by 40-50%.
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Text prepared by Timur Aliev
