• Binance has experienced a significant outflow of assets in the past two months, a recent report from Forbes found.
• Forbes analysts dove deep into Binance’s wallets and found that the exchange saw around $12 billion of outflows since November.
• A lack of consensus among analytics platforms led Forbes to worry about foul play within the exchange, as some reports showed gaps of several billion dollars in Binance’s wallets.
Binance, one of the world’s largest cryptocurrency exchanges, has experienced a massive outflow of assets in the past two months, according to a recent report from Forbes. Analysts dove deep into Binance’s wallets and found that the exchange saw around $12 billion of outflows since November. This outflow has been described as a soft bank run, with many users withdrawing their crypto assets from the exchange.
The report goes on to note that there is a lack of consensus among analytics platforms in terms of Binance’s actual holdings. Some reports show gaps of several billion dollars in Binance’s wallets, leading Forbes to worry about foul play within the exchange. However, the report only briefly addresses the state of the broad crypto market and underestimates its effect on Binance’s holdings.
In December, Binance made headlines when on-chain data showed that the exchange had lost $3 billion of assets in a single week. This was followed by a 15% decrease in the exchange’s total asset balance since November. The number of BUSD stablecoins, which is Binance’s native token, was slashed in half since then.
The massive outflow of assets from Binance has been attributed to the bearish market sentiment. Many investors are pulling their funds from the exchange as the crypto market shows signs of a downward trend. This trend is further exacerbated by the lack of clarity around the exchange’s actual holdings, which has led to mistrust among investors.
Binance’s CEO Changpeng Zhao has assured customers that the withdrawal amount wasn’t even among the exchange’s five largest and that there is no cause for concern. However, many are still skeptical of the exchange’s position and are taking their money out of the exchange.
Overall, the massive outflow of assets from Binance is a sign of the current bearish sentiment in the crypto market. Investors are increasingly wary of the exchange’s actual holdings, leading to mistrust and outflows. It remains to be seen how Binance will address this situation in the coming months.