The Curious Case of CZ’s Binance – Crypto Giant Loses $12 Billion! Unfolding The Truth
Forbes has reported that despite the recovery in the cryptocurrency markets following the collapse of the FTX exchange, the situation with Binance withdrawals has not yet stabilized. The report shed light on the current situation of Binance and revealed that the crypto giant lost $12 billion in assets as a result of users continuing to withdraw money from the exchange. In the past, Binance has asserted that it has no debt and that user assets were always fully supported.
The market value of Binance’s stablecoin, BUSD, dropped from its November highs near the $23 billion mark to its current level of $16.4 billion.
Defillama data also revealed that BUSD holdings have been declining steadily, with significant losses (at least $1 billion) on November 25 and December 14. This second big decline in the BUSD resulted in a startling net loss of $3.46 billion in just one day. On January 4, the combined value of USDT and USDC coins on the centralized exchange doubled to $6.27 billion.
Nansen said on December 13 that Binance had lost $3 billion in assets over the previous week, which was equal to 4% of the firm’s total assets at the time. Binance has lost a total of 15% of its assets (or $12 billion) in the most recent weeks. Outflows have only increased despite CEO Changpeng Zhao’s continuous attempts to reassure the public that the situation has settled.
“While net assets dropped by 24% since November, the investors in well-known tokens like matic, ape, and gala pared their assets at the exchange by 40-50%.”
According to Forbes, among Binance’s 23 competitors, only one other cryptocurrency exchange, MaskEX, has suffered worse percentage losses over the past 30 days. Whether withdrawals from the Binance exchange will exert any drastic impact on the cryptocurrency market in the near future remains to be seen.