Dramatic Deposit Bleeding on Binance: Lost About $12 Billion in Last Two Months

Binance CEO Changpeng Zhao (Reuters)
Binance CEO Changpeng Zhao (Reuters)

The withdrawal of deposits from Binance, the largest cryptocurrency platform in the world, “is worse than what the CEO indicated Changpeng Zhao last month, and it has gotten considerably more severe since then,” according to a Forbes analysis.

In the last 60 days, the drain was 12,000 million dollars, according to Forbes.

“Binance is struggling to hold the assets. In the wake of the collapse of rival FTX, investors have been withdrawing their cryptocurrencies in recent weeks, and despite CEO Changpeng Zhao’s assurances that the situation has stabilized, the outflows are accelerating.” “Clients withdrew $360 million net on Friday,” according to data from crypto data firm Defillama reproduced by Forbes.

Meanwhile, in December, Nansen, a crypto data firm, reported that Binance “had lost $3 billion in assets over the previous week, representing 4% of the firm’s total at the time.”

In this regard, “an investigation by Forbes revealed that, in fact, Binance lost 15% of its assets since a Twitter post by Zhao (widely known as CZ) the same day he downplayed the withdrawals from the Nansen report.”

Strong drop in Binance funds (Reuters)
Strong drop in Binance funds (Reuters)

“Even so, almost a quarter of Binance’s assets left the platform in less than two months,” he explained.

“The lack of investor confidence is best seen in the performance of Binance Coin (BNB) and Binance USD (BUSD), the two tokens that bear the name of the platform. BNB lost 29% of its value in the past two months, and Forbes estimated that that leaves around 29 million tokens on Binance, down 51% from what the platform revealed on November 10. Meanwhile, the number of BUSD stablecoins in the company plunged by 40 percent.”

But in addition, Forbes noted that “there are more subtle ways in which Binance seems to be losing trust and influence. While net assets are down 24% since November, investors in tokens known as matic, ape, and gala have reduced their assets on the exchange by 40-50 percent.”

In this regard, Forbes noted that “although it remains the largest cryptocurrency exchange by volume, Binance is not free from the nearly year-long decline in digital assets.”

“Its BNB token is down nearly 37% from 12 months ago, according to Nomics, and the exchange’s decision to stop charging fees for spot bitcoin trading as the market faltered cost it around $3 billion a year in lost revenue,” Forbes calculated.

The overall value of cryptocurrencies has shown an even greater decline, falling 56% over the past year to $848.7 billion, CoinMarketCap data shows.

According to Forbes, “CZ himself contributed to the demise of FTX in November when he announced on Twitter that he planned to sell his holdings of rival exchange FTX tokens, then worth around $580 million, citing recent revelations that have come to light.” .

“He followed that decision with a quickly rescinded ransom offer, alleging that the issues are beyond our control or FTX’s ability to help, implying that an initial look at the company’s books showed a more dire situation than we first realized. it was previously thought,” Forbes recalled in reference to the scandalous fraud of the firm of Sam Bankman Fried.

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