Binance Outflows Tops $3 Billion, CZ Says the Exchange Will Survive Any Crypto Winter

CZ has sent a memo to his staff saying Binance will survive any crypto winter after outflows topped $3 billion.

Binance Outflows Tops $3 Billion, CZ Says the Exchange will Survive Any Crypto Winter

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.”

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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. 

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 According to Nansen, the jitters on Binance were worsened by the huge sums withdrawn by Jump, a large market maker.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. 

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:

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

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
Milko Trajcevski

Milko Trajcevski is a DailyCoin news reporter, mainly focused on Ethereum (ETH), Cardano (ADA), and their founders (Vitalik Buterin and Charles Hoskinson). Milko is an avid follower of crypto and blockchain technology and has written thousands of articles on the subjects. He finds joy in transforming complex issues into written content that anyone can understand. Milko has used and analyzed numerous exchanges, such as Coinbase, FTX, and Binance. He also closely follows all of the latest news around the largest decentralized exchanges (DEXs). Location: Skopje, Macedonia