Binance HEMORRHAGES USDT, FUD Intensifies
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November 26, 2023 10:48 pm
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Binance is seeing increased USDT withdrawals as FUD spreads and consumer confidence drops.
Investors and customers are spooked that the exchange, recently fined $4 billion by U.S. regulators, might not have the funds to adequately function or service customer withdrawals. As a consequence, roughly $100 million in USDT has been withdrawn from the exchange at the time of this writing.
However, a cursory glance at Binance’s reported balance sheet and assets shows that the company is in strong financial condition and should be able to handle the hefty fine and still function as a proper exchange.
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That being said, this is not financial advice and we have seen many crypto exchanges go under after being seemingly ‘fine.’ Here are some of the latest figures regarding Binance:
Yesterday USDT recorded the highest level of withdrawals from Binance in the past three months. pic.twitter.com/Xoyb7hrrAh
— IntoTheBlock (@intotheblock) November 24, 2023
– 💰 Binance saw USDT withdrawals worth over $100 million, raising suspicions due to recent developments.
– 📉 BNB's price declined by more than 10% and struggled to regain the $250 range.
– 📊 BNB's trade volume peaked at over $2 billion, stabilizing the trend.
– 📈 Binance…— BlockVoyager (@BlockVoyagerAIO) November 26, 2023
I backed out Binance Corporate's crypto holdings from their Proof of Reserves: $6.35B total assets, $3.19B in stablecoins
Doesn't include off-chain cash balances or funds held in wallets not in PoR
Most likely able to pay full $4.3B DoJ fine with 0 crypto asset sales pic.twitter.com/GK45EwRSPO
— Conor (@jconorgrogan) November 21, 2023
Coin Paprika provided positive figures on behalf of Binance:
Despite recent challenges, Binance remains the leading exchange in terms of daily transactions. Its 24-hour trading volume exceeds $11.7 billion, significantly more than its closest competitor, Coinbase.
Binance Smart Chain’s Total Value Locked (TVL) has remained stable despite fluctuations, currently at about $3 billion. This suggests resilience in BNB’s value and exchange activity despite market uncertainties.
Binance’s new CEO Richard Teng reassured customers and clients: “The fundamentals of our business are VERY strong. Binance continues to operate the world’s largest crypto exchange by volume, our capital structure is debt-free, expenses are modest, and, despite the low fees we charge our users, we have robust revenues and profits.”
The fundamentals of our business are VERY strong.
Binance continues to operate the world's largest crypto exchange by volume, our capital structure is debt-free, expenses are modest, and, despite the low fees we charge our users, we have robust revenues and profits. https://t.co/PHq2YS0CP5
— Richard Teng (@_RichardTeng) November 22, 2023
CoinDesk reached a similar conclusion and argued that Binance is sound:
Customers rushing to yank their money out of FTX ruined that exchange because its operators fraudulently embezzled the money. On the other hand, at this point, Binance appears to be sound.
Its latest “proof of reserves” report, an imperfect but voluntary attestation of an exchange’s holdings, shows the exchange holds $65 billion worth of crypto assets alone. DefiLlama counts it at $68.4 billion.
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