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Crypto Markets Bounce Back, No Mass Exodus From Binance

2 mins
Updated by Ciaran Lyons
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In Brief

  • Crypto markets recovered swiftly after Binance CEO's resignation; no mass exodus or panic ensued on the platform.
  • Despite a $956 million outflow post-news, Binance's total holdings value increased to $65.2 billion as crypto prices rose.
  • Binance is capable of paying the full $4.3 billion fine without selling any crypto, holding more than $6 billion in corporate assets.
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Crypto markets are showing solid recovery just a day after the news broke regarding the resignation of one of the industry’s most enigmatic and influential characters. Moreover, there has been no panic or mass exodus from Binance which is ticking along as usual. 

There was no surge in Binance exchange withdrawals following the settlement of charges against Binance and CEO Changpeng “CZ” Zhao in the United States. 

No Binance Exodus 

Binance is the world’s largest crypto exchange by volume. The charging and resignation of its CEO, a highly influential industry leader, should have crashed crypto markets.

But it didn’t. 

According to on-chain analytics provider Nansen, there was no mass exodus of funds from the exchange in the 24 hours that followed the news breaking

On Nov. 22, Nansen reported that “withdrawals are continuing, and we’re not seeing a mass exodus of funds.”

There was a slightly elevated outflow with a $956 million negative net flow in the day that followed the news, but nothing alarming.

Binance net flows on Nov. 22. Source: X/@nansen_ai
Binance net flows on Nov. 22. Source: X/@nansen_ai

In fact, Binance’s total holdings value increased to $65.2 billion as crypto asset prices rose.

Nansen noted that there were two much larger outflows from Binance over the past year. One was in December 2022 after insolvency rumors and the immediate aftermath of FTX. The second was in June after the SEC sued the company.

Learn more: Binance Review 2023: Is It the Right Crypto Exchange for You?

On Nov. 22, BeInCrypto reported that Binance would likely be able to pay the full $4.3 billion fine without selling any crypto. This is because it holds more than $6 billion in corporate assets.

In response to this revelation, the new CEO Richard Teng said, “The fundamentals of our business are VERY strong,” before adding. 

“Binance continues to operate the world’s largest crypto exchange by volume, our capital structure is debt-free, expenses are modest, and, despite the low fees we charge our users, we have robust revenues and profits.”

Crypto Markets Bounce Back 

Crypto markets have fully recovered from the minor blip caused by the Binance news. 

As a result, total capitalization is up 4.8% on the day to reach $1.48 trillion with $70 billion entering the space over the past 24 hours. 

Bitcoin is up 3.8% on the day at $37,430 during the Thursday morning Asian trading session. Meanwhile, Ethereum has made 5.4% to reach $2,068 at the time of writing.

Other altcoins posting solid gains at the moment include Solana (SOL), Avalanche (AVAX), and Uniswap (UNI). 

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Martin Young
Martin Young is a seasoned cryptocurrency journalist and editor with over 7 years of experience covering the latest news and trends in the digital asset space. He is passionate about making complex blockchain, fintech, and macroeconomics concepts understandable for mainstream audiences.   Martin has been featured in top finance, technology, and crypto publications including BeInCrypto, CoinTelegraph, NewsBTC, FX Empire, and Asia Times. His articles provide an in-depth analysis of...
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