Binance sees record withdrawals after uncertainty reports

Binance sees record withdrawals after uncertainty reports 1

Last Updated on 1 hour by John Piper

Binance witnessed a large number of withdrawals earlier this week after the release of uncertainty reports about its proof of reserve system.

Nansen data shows that the top crypto exchange saw $902 million in outflows within 24 hours. The amount of assets left the exchange was much greater than the money coming in. Other exchanges have experienced withdrawals due to the FTX crash, and users are looking for self-custody. However, Binance’s outflow volume is almost nine times greater than the second largest withdrawal amount.

Binance’s previous record withdrawal rate was set just two days before FTX filed bankruptcy protection. There have been numerous reports about the exchange, which has increased investor uncertainty. Binance is now examining news reports about centralised exchanges and the loss of trust by the industry, keeping in mind that the market is still recovering from the bear market crash last year.

Jump Trading, one of the major market players, is just one of many accoutns to have moved funds from Binance over the past week. Andrew Thurman, Nansen analyst, mentioned that Jump Trading is among the biggest institutional investors who are withdrawing funds from Binance.

The report shows that Jump addresses have withdrawn approximately $146 million in cryptocurrency in the past week. This includes $102 million in Binance USD, and $14 million Tether.

Despite the news, Binance CEO Changing Zhao “CZZ” Zhao has asked his followers not to believe the “FUD”, and continue building the industry.

Coin Insider’s first article, Binance records withdrawals following uncertainty reports, appeared first on Coin Insider.

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