World’s largest crypto exchange platform Binance is currently experiencing a massive outflow of cash from its platform.
As the FTX contagion continues to spread through the crypto market, investors on the platform are pulling out funds in droves as reports reveal that assets worth $12 Billion have gone in less than 60 Days.
Also, data from a crypto firm disclosed that the sum of $360 million was withdrawn from the platform in November 2022.
Concerns from investors on the platform have also been indicated by the performance of its native tokens of Binance USD (BUSD) and Binance Coin (BNB). Research by Forbes disclosed that the Binance stock of BUSD stablecoins has fallen by 40% since November, while the BNB has fallen by 29%.
Meanwhile, the CEO of Binance Chanpeng Zhao commonly known as CZ has continued to assert that the situation has normalized, while stating that the massive withdrawal of funds was normal market behavior, however, the data tells a different story.
In December 2022, he disclosed that about $14 billion of withdrawals happened on the platform while stating that it was not the highest withdrawal the firm has witnessed, giving investors the assurance that deposits are coming back.
Investors King understands that Binance current crisis is attributed to the collapse of top crypto exchange platform FTX. After the firm filed for chapter 11 bankruptcy on November 11, it sent shocking waves to other crypto platforms as investors expressed concerns.
It also negatively impacted the price of cryptocurrencies which massively declined, with Bitcoin currently trading at an all-time low of $17,429, while the price of Ethereum is currently trading at $1,333.
While the FTX collapse has had a severe effect on the price of cryptocurrencies, it has also dealt a big blow to the broader crypto market, as some companies are currently bearing the brunt.
Companies such as Genesis, Sequoia Capital, BlockFi, Wintermute, and Coinshares, have all suffered losses following their exposure to FTX.
The FTX collapse also saw some other companies lay off part of their workforce, which include, Nestcoin, Coinbase, etc.
