Connect with us


Binance Recorded Massive Outflow of over $1.14Bn as Crypto Community Reacts



Binance Recorded Massive Outflow of over $1.14Bn as Crypto Community Reacts

Amid the lingering bear market, one of the world’s leading cryptocurrency exchanges Binance recorded a daily outflow of more than $1.14 billion on Dec. 13 according to a tweet by its CEO Changpeng Zhao (CZ).

Within the same period, the exchange recorded Bitcoin (BTC) withdrawals to the tune of more than $500 million due to rising FUD- fear of uncertainty and doubt.

According to data from on-chain monitoring resource Coinglass, Binance’s BTC balance declined by over 30,000 BTC on Dec. 13 following the massive outflow on the exchange.

In the course of the events, CEO and founder of TRON, Justin Sun, made a withdrawal of over $50m from Binance, which also propelled others to follow suit. Meanwhile, Binance was able to process all withdrawals and stayed strong.

Reacting to the development, CZ maintained that FUD of that nature makes the exchange grow further even though it could be very annoying. He harped that it helps to build a common defense alliance.

It was gathered that the FUD began when news spread about Binance being investigated by the U.S. government for money laundering; a claim that has subsequently been dispelled by Binance.

Reactions Trail Massive Outflow from Binance

The unexpected bank run on Binance has generated a series of reactions from several individuals within the crypto community. Bitcoin millionaire Carl Runefelt asserted that the crypto community is ruined if Binance collapses.

In the same vein, Author and Bitcoin enthusiast Layah Heilpern remarked that the entire crypto community might crumble if Binance goes down. She further argued that only Bitcoin will survive.

Twitter user Crypto Cognac also shared similar thoughts saying that Binance’s demise won’t bring anything good to the crypto ecosystem as it might send the entire crypto industry back to the stone age.

Meanwhile, crypto analyst and government adviser Del Crxpto contended that crypto media outlets are trying to destroy Binance by pushing out wrong narratives.

It would be recalled that CZ’s remark about FTX led to the eventual collapse of the exchange following his disclosure that the exchange was battling a liquidity crisis.