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.
Jump reported net outflows to Binance of more than $146 million per week. There were no inflows.
Binance books that look completely dry of liquidity may be a sign of a major MM exit.
Source: https://t.co/aasol67vsX https://t.co/GbeXfXqwce pic.twitter.com/yLYXgBEsSW
— Andrew T (@Blockanalia) December 12, 2022
The report shows that Jump addresses have withdrawn approximately $146 million in cryptocurrency in the past week.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.
FUD is a myth. Keep building!
— CZ binance (@cz_binance), December 12, 2022
Coin Insider’s first article, Binance records withdrawals following uncertainty reports, appeared first on Coin Insider.
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