Binance CEO Changpeng Zhao has responded to a torrent of fear, uncertainty, and doubt (FUD) following increased withdrawals from the exchange.
On Dec. 14, Changpeng Zhao stated that the recent spate of exchange withdrawals was “not even in the top five.” We processed more withdrawals during the Luna crash and FTX collapse, he said.
In an effort to quell investor jitters, the Binance boss added that things had stabilized now. “Deposits are coming back in,” he said, quashing all concerns of a run on the exchange.
Binance Crypto Exodus
Ever since the FTX collapse in early November, crypto investors have been moving assets off centralized exchanges.
There was a spike in Binance withdrawals on Dec. 13, instigating a wave of FUD over whether the exchange was next to fall.
Even Bloomberg reported that $2 billion had been taken off the exchange. However, figures could be more than $5 billion. Either way, Binance appears to have shrugged off the exodus, with Changpeng Zhao claiming it is “business as usual.”
Concerns have been mounting over the firm’s recent proof of reserves statements. Although Binance has a massive stash of BTC in its reserves, the report was only a snapshot and not a full audit. Furthermore, their publically disclosed wallets contain more than $60 billion in reserves, according to Nansen.
In the true spirit of crypto tribalism, Coinbase chief Brian Armstrong was quick to defend his company. “Lots of fear out there in the markets. It’s important people remember how different Coinbase is in moments like this,” he tweeted on Dec. 14.
However, Binance remains the market leader due to much lower transaction fees, more asset pairs, and a wider array of earning opportunities.
BNB Weathers the Storm
Many had expected (or even hoped) that the Binance native asset, BNB, would flash crash yesterday. However, it has weathered the brief storm and is trading up 2.3% on the day.
BNB was changing hands for $275 at the time of press. The exchange coin dipped to $262 during the peak fear moment but has recovered most of those losses.
BNB has performed better than most during this bear market after losing ‘only’ 60% since its all-time high. It has been trending downwards, however, losing 7% in the past two weeks.
BeInCrypto has reached out to company or individual involved in the story to get an official statement about the recent developments, but it has yet to hear back.