The founder of Binance, Changpeng Zhao, has assured users that the exchange will survive any crypto winter after FUD — or fear, uncertainty, and doubt — within the crypto ecosystem caused outflows to spike over $3 billion.
CZ Says Binance Will Survive any Winter as Outflows Spike
In a memo sent to his staff, Changpeng Zhao highlighted that with the recent wave of bankruptcies, the crypto industry is going through a historic moment. Still, he maintains that Binance is in a good financial position and “will survive any crypto winter.”
The Binance boss expects “the next several months to be bumpy, we will get past this challenging period – and we’ll be stronger for having been through it.” The memo comes amidst a sustained wave of withdrawals on Binance.
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According to data from the crypto analysis platform Nansen, Binance recorded over $3 billion in net outflows. According to Nansen, the jitters on Binance were worsened by the huge sums withdrawn by Jump, a large market maker.
Binance Experiences FUD
The massive outflow of crypto, which is the highest recorded in the last six months, on Binance was sponsored by FUD — or fear, uncertainty, and doubt — within the crypto ecosystem.
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The withdrawals came amidst discussions of a possible bank run on Binance sponsored by concerns regarding the trading platform’s reserves. The large withdrawals also forced Binance to halt withdrawals on USD Coin (USDC) pairs.
On the Flipside
- Although Binance has restored USDC withdrawals, the initial halt has raised concerns about the exchange’s liquidity. Andrew Thurman, Content Lead for Nansen tweeted:
Jump has net outflows from Binance in excess of $146 million on the week, and no inflows
— Andrew T (@Blockanalia) December 12, 2022
If Binance books look like they're completely drained of all liquidity, the exit of possibly the largest MM is probably a good reason why
Source: https://t.co/aasol67vsX https://t.co/GbeXfXqwce pic.twitter.com/yLYXgBEsSW
Why You Should Care
As Binance is the largest crypto exchange, CZ is doing all he can to reassure customers that it will not go through an FTX-like incident.
Get more details about the USDC halt in:
Binance Halts USDC Withdrawals Amid Massive Outflows
Read about the recent allegations against Binance in:
Binance Responds to Allegations that the US DOJ May Charge the Company with Money Laundering
