Binance Outflows See 25% of Assets Removed in Under Two Months, Says Analysis

2023-1-10 23:31

Binance has reportedly lost almost 25% of its assets in less than 60 days as CEO Changpeng ‘CZ’ Zhao runs the exchange without a chief financial officer.

A recent Forbes analysis reveals over $12 billion in asset outflows from Binance in the last two months, led by Paxos-issued stablecoin BUSD and Binance’s own BNB coin.

Binance’s Reliance on BNB Renders Outflows Concerning

According to Forbes, the value of Binance’s BNB coin dropped about 30% in the past two months, 51% lower than reported by the exchange on Nov. 10, 2022, with only 29 billion of the coin remaining on the exchange.  

Data retrieved from Binance-owned CoinMarketCap on Jan. 9, 2022, reveals that 31% of Binance’s asset holdings are made up of BNB, in conflict with the lower percentage Binance reported in Nov. 2022.

Source: CoinMarketCap

This 31% estimation is also lower than estimates by CoinMarketCap’s other data providers, Nansen and Defillama. If the upper estimate is correct, Binance stands to lose a substantial amount of its asset base through future BNB outflows.

The report also found a wild discrepancy in the reporting of Binance’s Bitcoin holdings with cybersecurity firm CER.LIVE reporting more than double CoinMarketCap’s $4.3 billion estimate.

Source: CER.live Source: CoinMarketCap BUSD’s $3 Billion Outflows Made up 15% of Assets

In addition to BNB outflows, Binance’s BUSD holdings fell sharply on Nov. 25, and Dec. 14, 2022, as several whales swapped the token for USDC and Tether. The BUSD held fell by $3.5 billion on Dec. 14, 2022, cutting down the exchange’s asset holdings by 15%, Forbes reports. USDT and USDC holdings rose. 

Wintermute, market maker Jump Crypto, and Huobi Global’s Justin Sun withdrew notable amounts of BUSD around Dec.12-Dec. 13, 2022. Sun had earlier deposited $100 million worth of assets on the platform.

CZ tweeted that Sun’s $200 million deposit helped bolster activity on the Tron blockchain for Binance. He later deleted the tweet.

Binance also allegedly sent $232 million in BUSD to Binance.US to possibly boost its financial clout in the eyes of the U.S. Securities and Exchange Commission, ahead of Binance.US’s proposed bid for the assets of collapsed crypto broker Voyager Digital. The SEC recently blocked Binance.US’s takeover plans, citing insufficient visibility into the American exchange’s financials.

Adding to Binance’s woes, customers have reduced their MATIC, APE, and GALA crypto assets by 40-50% since Nov. 2022.

Will CZ Remain Crypto’s White Knight Amid Outflows?

The ability of crypto exchanges to honor mass withdrawals became a key selling point after the collapse of the Bahamian exchange FTX.

FTX didn’t have enough liquid assets to honor withdrawals in early Nov. 2022, which led to its demise on Nov. 11, 2022. Its former CEO, Sam Bankman-Fried, who faces eight criminal counts in the U.S., allegedly drained FTX’s liquidity through unethical lending and other misuses.

On Dec. 13, 2022, Binance customers successfully withdrew roughly $1 billion from the exchange after it paused withdrawals of the USDC stablecoin. CZ dismissed the outflows as “business as usual,” adding that crypto exchanges should conduct regular “stress tests” to determine their resilience.

After the FTX collapse, CZ launched a recovery fund to help crypto firms affected by the crypto winter stay afloat. These actions and a few others earned him the reputation of crypto savior in some circles.

However, the absence of a CFO after the departure of Zhou Whei in June 2021 raises unsettling questions about CZ’s power to spend money that may not be his to restock Binance and prevent the dreaded bank run scenario.

For Be[In]Crypto’s latest Bitcoin (BTC) analysis, click here.

The post Binance Outflows See 25% of Assets Removed in Under Two Months, Says Analysis appeared first on BeInCrypto.

Similar to Notcoin - Blum - Airdrops In 2024

origin »

Decentralize Currency Assets (DCA) на Currencies.ru

$ 0 (+0.00%)
Объем 24H $0
Изменеия 24h: 0.00 %, 7d: 0.00 %
Cегодня L: $0 - H: $0
Капитализация $0 Rank 99999
Доступно / Всего 0 DCA

assets binance months analysis two says under

assets binance → Результатов: 126


Фото:

Binance Launches Venus – A Decentralized Stablecoin And Digital Assets Lending System

Binance has unveiled a new DeFi protocol Venus on its rapidly growing blockchain ecosystem Binance Smart Chain to generate decentralized stablecoin assets and allow digital assets lending. Venus (XVS) is a Money Market and Stablecoin DeFi platform on Binance’s blockchain ecosystem that will enable lending/borrowing of digital assets, and generation of synthetic assets based on […]

2020-9-29 19:07


Binance Research: биткоин, золото и другие защитные активы подскочили в цене после твита Трампа

Согласно наблюдениям аналитиков Binance Research, биткоин, золото, японская иена, швейцарский франк и 10-летние казначейские облигации США сразу после твита Дональда Трампа почти синхронно выросли в цене.

2019-8-3 20:35


Binance Coin has Binance’s LaunchPad to thank for its successful lift-off

Binance, the world’s largest and arguably, the most trusted cryptocurrency exchange in the world, has made a name for itself since its launch in mid-2017. Led by Changpeng Zhao, a man who made a name for himself as the ‘good boy’ of the digital assets realm, the exchange has heralded a slew of innovations out […] The post Binance Coin has Binance’s LaunchPad to thank for its successful lift-off appeared first on AMBCrypto.

2019-7-27 19:00


Binance’s Trust Wallet Releases Multi-Dex Support Powered By Kyber Network

Trust Wallet, the official crypto wallet app of the Binance Exchange, will now feature a “Multi-Dex” cryptocurrency exchange option through the integration with Kyber Network Protocol. In addition to native access to Binance DEX, Trust Wallet users will have access to a variety of decentralized exchanges and be able to swap their digital assets directly […] The post Binance’s Trust Wallet Releases Multi-Dex Support Powered By Kyber Network appeared first on Crypto Briefing.

2019-7-25 03:00


Binance активировала маржинальную торговлю для EOS и Chainlink (LINK)

Криптовалютная биржа Binance сообщила в четверг, 18 июля, о расширении списка активов, доступных для маржинальной торговли на платформе. В частности, торговля с плечом стала доступна для EOS и Chainlink.

2019-7-18 12:54


В сети Binance Chain успешно проведен запланированный хардфорк Galileo

В основной сети Binance Chain состоялось анонсированное ранее обновление Galileo. Теперь на бирже Binance DEX появилась возможность делистинга торговых пар, а также реализованы понятия мейкера и тейкера.

2019-7-16 10:05


Users should be comfortable with owning & using digital assets, says Pundi X CEO on release of XWallet 2.0

With crypto-adoption rates rising across the globe, major exchanges such as Binance have started integrating a number of features onto their platform to improve user experience. The principal aim of most of these industry heavyweights is to make cryptocurrency transactions straightforward, so that usage of digital assets is effortless.

2019-7-11 22:30


New Binance Report Says Bitcoin Has Decorrelated with Other Crypto Assets During Q2 of 2019

Over the course of Q2 2019, Bitcoin is finding itself in a unique predicament, as a new study from Binance indicates that it is now less correlated with other cryptocurrencies. Binance’s Research report was released on July 5th, crediting this decorrelation to a possible “flight-to-quality” from the bull run that the market has been experiencing […]

2019-7-6 03:17


Raging Bitcoin Price Propels Crypto Market to Spike $25 Billion in 2 Days

By CCN Markets: In the past two days, the valuation of the crypto market has increased from $300 billion to $325 billion, supplemented by the strong upside movement of bitcoin. As the bitcoin price quickly moved from $8,000 to $11,000, major crypto assets in the likes of Ethereum, XRP, Bitcoin Cash, EOS, and Binance Coin recorded fairly large gains against the U.

2019-6-23 13:06


Chinese Bitcoin Investors And Entrepreneurs Consider Regulations as Highly Important for Market Involvement

Everyone is talking about Facebook’s new crypto project Libra and the influence that it can have on the market. Pony Ma (Ma Huateng), the CEO of the multinational investment holding conglomerate Tencent, said that regulations are important for companies to release their own digital assets such as Facebook did. Changpeng Zhao, the CEO of Binance […]

2019-6-20 00:17


If Bitcoin Ban Bill in India Passes, Privacy Crypto Assets Could Boom: Binance CEO

Yesterday, the Bitcoin (BTC) and crypto asset community woke up to a harrowing tidbit of news from Bloomberg Quint. An article, which cited a “draft bill”, revealed that regulators in India, from multiple financial and judiciary agencies, revealed that those who involve themselves in the “sale, purchase and issuance of all types” of crypto assets,.

2019-6-9 00:00