Binance HEMORRHAGES USDT, FUD Intensifies

November 26, 2023 10:48 pm Comments

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 As a consequence, roughly $100 million in USDT has been withdrawn from the exchange at the time of this writing.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.

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:

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.”

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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