Users are withdrawing funds from Binance in large amounts

Binance in trouble with $3 billion in withdrawals in a week

Ivan Rodriguez Gelfenstein

Users have been withdrawing funds from Binance in large amounts, including USD (CRYPTO:USDC) and other stablecoins. Binance has already recorded a net outflow of more than $3 billion in cryptocurrencies in the last seven days, according to Nansen data.

It all started on Monday when Binance saw an unprecedented rise in withdrawals due to concerns raised by your test report of reservation. According to blockchain intelligence platform Nansen, the outputs net reached $902 million in a single day. This marked a Dramatic rise in sentiment as investors moved away from stock market, which raised serious doubts about their holdings.

Although Binance provides its public wallet addresses for reasons of transparency, many investors continue to question the transparency of the interchange. In particular, the wallet balance offers no idea of the possible responsibilities of Binance.

On Monday, Reuters reported that U.S. prosecutors are investigating. a possible money laundering case against Binance. Changpeng Zhao, CEO of Binance, told Twitter users to "ignore FUD" (the word that It is used in the world of cryptocurrencies for "fear, uncertainty, and doubt").

A deep sense of concern for Binance's health swept the market on Tuesday. This apprehension was probably reinforced by the reports that Justin Sun of Tron withdrew $50 million from Binance. The Anxiety in the market was palpable and the news of the pullback only fueled the concerns.

Binance tweeted that it will temporarily suspend USDC withdrawals while participates in a token exchange between USDC and BUSD (managed by Paxos).

In an effort to allay market concerns, Sun tweeted a link to Etherscan showing that he had re-deposited $100 million in USDC on the exchange.

According to Zhao, the exchange has seen this before and thinks "it's a good idea." run 'stress test rollbacks' on every CEX [exchange centralized] continuously."

Bitcoin enthusiast Layah Heilpern noted that "if Binance fails, everything the rest fails." He further explained that while Bitcoin can stand on its own Even the entire scene of cryptocurrencies, such as stablecoins, is not. Will.

Post a Comment