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GM crypto fam.

Since I'm pretty busy and can't keep track of everything, even though I'd like to, this is something that I don't understand very well and would like to get your opinion on.

So, Binance recently halted USDC withdrawals because outflows reached $2B, which indicates to me that many investors are worried about their state, even tho they resumed withdrawals shortly after that.


What is all the fuss surrounding Binance? Do you believe the recent difficulties could cause another crypto market downturn?

source:

https://app.getresponse.com/view.html?x=a62b&m=BVKQj2&mc=9I&s=BtgXWnG&u=QcLhh&z=EGCLwcu&

So you're a person who leave coins on centralized exchange? you're really stupid since exchange isn't a place to hold your coins, you must withdraw it to your hardware wallet. You can use ledger, trezor, bitbox etc depends on the hardware wallet you're interested. If you don't have money to buy hardware wallet, you can use non custodial wallet like Electrum, Bluewallet (Bitcoin). If you hold altcoins, maybe Metamask is a good option.

Others' say that it is completely not true and this is just FUD. Regardless though, with the event like FTX, I don't think we need to keep our crypto, let alone a stable coin in any exchanges.

And probably the outflow was due to this FUD though that's why crypto market is again affected after we have seen a rise of above $18k to bitcoin. Now it goes down again below $17k because of this negative news from one of the top exchanges that we have.

Even the firm that posted this outflow, Mazars has deleted their tweet about this one.

The outflows reached $2B because many people were victims of FTX saga, others learnt from it that safety is never really assured when using or depending on an exchange for the safety of your cryptocurrency. The many withdrawals may have been triggered by a recent news that some have heard  about binance, while some others just heard that people were making withdrawals and contributed to the numbers by withdrawing as well. Anyhow, this all still advises for self custody, so you don't get too worried to start making emergency withdrawals whenever you hear a news about an exchange where you kept your cryptocurrency.

Hey Binance is in real trouble now.

Binance native coin BNB has fallen by 11.5% in 24 hours and 19.5% in the past week. BNB Proof of reserve audit has failed, resulting in withdrawal on the exchange crossed over $3 billion creating a possible Binance FUD.


You can be updated with all the current crypto news by just following Coinpedia and Coingape Sites. They are one stop destination for all crypto news.

Is another exchange collapse on its way?

Lol what? Just because the price has dropped 11.5% in last 24 h you are worried about BNB coin or binance will collapse? Let me tell you, binance is too big to fail. Just look at all markets, almost all of them got dumped as well because btc dumped too. Even i happier with this FUD so i can buy more BNB and added it on my bag. Just tell me if you want to sell your BNB.

Not really no. Afaik it should be just people pulling their funds out and putting them in their hardware wallets, which should've been something that has been done already in the past, but with the FTX drama I guess people got the wake-up call they needed. I don't believe it'd cause an effect similar to FTX, unless, maybe, Binance closes down or something, but even then it should be a temporary thing, just like with the FTX thing. There might be more though since afaik there's also some news about Binance being investigated iirc? Most likely just speculation though and nothing is guaranteed as of yet.

I don’t think it will be a problem, and it is just FUD. A lot of people are probably scrambling and finding ways to consider what to do in times like this, and I think being calm and making sure that the assets that you are holding are on the amount that you could lose.

I think they are just adding more fuel to the fire to get crypto into a perfect place and buy a lot of it 

@OP try to listen to the binance recent AMA with CZ then you can decide if these FUDs are enough for you to be concerned or not. This decision should be made by you only. And as for me, am not bothered or concerned because I know binance is very solid and doing great despite what those shameless paid FUDers are trying to display.
According to CZ, Binance has 15 licenses to operate in different countries, and they will keep pushing to acquire more licenses, haters will always hate because that is their job. How many other exchanges can say they have such access? SBF and his little mouses will get tired eventually, binance and CZ can not come to the rescue anytime a project screwed up.

After some hacked exchanges it looks like Binance will be targeted by them as well. Even if they can't drop it in a code hacking attack, but they can intelligently make psychic investors and the community become doubtful with Binance so with this situation we question whether Binance is okay.

What I've heard is just a FUD.

Whatever is happening on the withdrawals and there's an influx of it on Binance, they can't blame the people and they have to be ready for any turn around.

But it seems that Binance is just allowing it lightly which should be and there's no sign that anyone has to worry about it although, everyone should only keep an amount that they're using to trade and can afford to lose.

Even if they wanna bring down Binance through the BNB price drop, they may not really be successful since CZ already saw this coming and must have prepared for it already. His pawns probably have sold thier own BNB tokens on Binance causing this plunge which is any auditor soon wants to verify thier holdings, they may only see a few BNB tokens.

I think CZ wants his users to withdraw something else and not USDC.  Sneaky.
But If OP believes all these fud, he can withdraw his funds out of Binance, nothing can stop you even CZ.

Nah! I don't think these huge withdrawals can bring Binance down. Ever since its decision to cancel the purchase of FTX and made it open to the public, CZ already knows possible attacks of any sort. I believe Binance can weather the storm, it's too prepared for this.

About the market, it is down already. Of course, it is affected since Binance is the biggest crypto exchange. Many are scared and didn't just withdraw their coins but sold them into fiat. For me, this is just FUD. My BTC buy order of $17.5k was hit. Now I need to cash in some funds so I won't miss this opportunity to buy at a lower price. The same scenario with ETH and BNB.

US wants to regulate the crypto market but they are not the ones to decide where this market will go, not even us users of BTC. the free market will decide and there will be people who will be using Binance as their storage just as the people do before 2022.

the FTX scam may teach the millions of users not to store their coins on exchanges but later when this market gain back the momentum, another incoming investors will do the same.

they wanna find faults to Binance. but because of the lack of regulations in US, Binance will also push back to what they want which causes all these fuss. It already cause a downturn so were all in it.

There is no reason for all these concerns.  Binance will not fall so easily, and some normal news may be interpreted and presented to create panic in the market, or released by Binance competitors to undermine its credibility.  In the past two days, news has been circulating about a $19 billion withdrawal by Binance, and that this is like an escape.  Of course, the matter was exaggerated, and there is no certain information about the platform transferring this imaginary amount from its wallets.

 The fall of Binance would be disastrous if it happened, and I think the authorities have taken a lesson from what happened with the FTX platform and also the Luna network.  Binance has so far been able to secure itself and follow prudent management policies, but no guarantees can be given that the situation will continue in this case.  Unfortunately, we are all affected by what may happen with Binance, even if we are not using it.

 There is great hope for the rise of other platforms and the participation of Binance in its share of the market, which is currently the largest.

Binance is probably the wealthiest and most healthy crypto exchange out there. They made that clear when they published the data about their exchange reserve funds which were at around 70 Billion $ if i remember correctly. That being said, i think there is no company out there in the world that is absolutely 100% bullet proof against a possible bankruptcy, so of course it is also possible hat Binance gets in trouble. The bad thing about such rumors and news is, that they are triggering a chain reaction. First a few big players start to withdraw their funds from an exchange and then as soon as this gets noticed more and more other investors are doing the same.

Investor and trader confidence on exchanges isn't that high so I wouldn't too sure about that "too big to fail". One wrong move and CZ's empire could crumble. It's not a secret that Binance has been a target of regulators all over the world despite the exchange's effort to cooperate. There's a recent news report that they could be a subject of a US lawsuit for money laundering and then you have the FUD on their involvement with the FTX collapse.

I am not worried but in case you are it doesn't cost anything for you (except the withdrawal fees) to get your money out. Just be aware that when you hold your private key in the piece of paper that you can't lost in any circumstances. Or if you keep your money in hot wallet, when you are more exposed to phishing and scammers. My advice is, if you withdraw, don't tell anyone how much you withdrawed. Because it might not be much now, it can be 100x later and people who find their marks know this.

Everyone who holds their crypto in the Binance platform should be concerned because the bankruptcy and collapse of the FTX platform is not the last, so we can expect anything, so we have to take precautions and not hold our wealth except in a cold wallet and stay away from exchange platforms, although what happened to Binance differs about FTX only what Binance witnessed is a huge number of withdrawals within a week, which is the largest number of June, in addition to that there are many prominent figures in the crypto arena who spoke against Binance that Binance does not have enough Bitcoin to cover customers deposits, also, some parties are considering filing criminal charges against Binance and its owners for failing to comply with anti-money laundering penalties, so I do not know what fate hides for Binance after this violent attack against this top platform, but we must take precautions.

https://paxos.com/wp-content/uploads/2022/12/BUSD-Monthly-Stablecoin-Reporting-November-2022.pdf
All the money of the Binance exchange is invested in the U.S. Treasury Bills.
Maybe I'm a stupid investor, but have the exchange leaders heard anything about diversification?
Practice has shown that with the help of sanctions it is possible to freeze any investment, and then the Binance exchange has big problems.

That’s just ridiculous assumptions. I mean could be binance business, they might be moving funds for security reasons or there could be conversions, swaps, internet rate payments and what not. It could be combined income of all the assets. Or it might be that Binance is tightening the security of their funds because of the recent events that moved the market to extreme levels. I think we should be hoping for the positive side only. After all the mess that has occurred due to FTX, we should keep the tracks on!

Now this is surprising, after FTX, many are speculating what Binance would be doing in a situation where majority of the users started to withdraw their funds and all the media were focusing on how Binance runs their business and even Kevin O'Leary who is a paid spokesperson for FTX testified before congress that Binance was the reason for FTX bankruptcy and now they have halted withdrawal which is really worrying as you never know what is going on behind the scenes. I would move all my coins from the exchange when you hear news like these.

They were tagged as the cause of FTX collapse when Kevin Oleary pointed fingers at Binance being the reason why FTX lost a lot of funding and eventually lead to bankruptcy.  So the authority is all eyes on Binance treasury now  ;D.



It can possibly cause another crypto market downturn if Binance is unable to solve this issue.  But I believe CZ will find a way to solve the problem.  Even though I don't like CZ but I admit he is cunning and smart.  He will be able to solve the problem even before we know it.

Not sure why Binance has to be blame of the FTX collapse, if there is one person it should be SBF and now he is in jail. And if I'm not wrong, SBF try to reach out to CZ to help him but CZ bail out in the last minute because the damage has been done already and it will cost billions of money from CZ to salvage or take over FTX.

As for the outflows, it's not only Binance that could have seen billions of dollars going out in the last month or so.

For sure even top exchange has reported it but there is no FUD surrounding the outflows, just Binance. So obviously they have targeted CZ.

Reminder: do not keep your money in online accounts  (https://bitcointalk.org/index.php?topic=5421039.0)

I don't keep any funds on Binance, why should I be concerned? To be affected by the whole contagion if in case it has a similar fate as FTX? Well, I don't concern about it.

The market might be having a shock, but the point is I'm in control of my own assets without any assistance or dependence on any intermediaries and any third party. It is essential as the reminder suggest, to have as much coin in the environment we fully control. The market downturn might be temporary, but it will strengthen the resilience of the cryptocurrency market and as a lesson for anyone who deals with cryptocurrency to utilize its full potency, as an example, the importance of self-custody.

You can store coins on the exchange only if you trade every day. If you only buy coins, then send a small part of the stablecoins to the exchange and withdraw the purchased coins to your cold or hardware wallet. Right now is a bad market for short-term trading.

IMO, binance will not collapse like ftx. However, Still we should not hold our funds there. Keep your funds in a personal wallet.

Thats actully true. CZ was behind the FTX exchange's bank run his tweets created panic.

Basically, saving coins on an exchange is indeed something that is not quite right in this case, so when something like this happens, many people will really be interested, even though they actually think more from the start.
I think even exchanges can still store coins there but in other cases it is better to store them in a wallet like a trust wallet for altcoins because in this case it is of course safer.
FTX should set an example but there seems to be a lot of naive people still holding their assets on exchanges.

This is what everyone should be doing, it is hard to believe that it is taking such a massive crisis for people to realize that letting anyone other than yourself to hold your coins is a bad idea and yet that is precisely the scenario that is playing out, and while it seems unlikely that binance could collapse in the same way the FTX exchange collapsed, if it were to happen I will be mostly unaffected by it, as I do not hold any amount of money in any centralized exchange and I do not hold their centralized coin either, at worst the price of bitcoin could go down but this instead benefits me as I would be able to buy bitcoin for an even lower price.

For the most part, such news is FUD, which generates panic and rash actions. People withdraw their funds because of the development of various speculations, which are not even close to the truth. In the news for some reason they focus on blocking USDC, but for some reason they do not specify that the blocking was in several networks, and other networks worked fine and there USDC could be withdrawn.

I am feeling that CZ will have a revenge but in another way and that's through making their service better and FUD proof. I guess that's what he is going to prove to anyone and with his competitors. There's the recent news that he'll acquire the Voyager assets and bidded for it.
But let's see where it goes as the market has been filled with so much FUD one after another. Literally, just before the FUD the collapse of FTX and so on. If someone's concerned with most withdrawals, you can do what the flock is doing.

No, this outflow is not a consequence of the FTX collapse, it is related to the Reuters message, which states that the US Department of Justice may charge the Binance crypto exchange and its executives with money laundering and sanctions violations. I think this Fud will dissipate soon.

It's not yet on the way to be collapse. I meant the price was bumping again as statement that was coming from binance exchange site itself. The main problem is there are so many FUDs in the market to attack binance after FTX incident. Even some garbage press was using old news to repeat the same scenario again. I do believe if now binance is quite stable. I think that you shall not try to think impact from FUD will be stay for long term.
The impact from FUD will be gone as long as binance has proven what they have been saying on the statement. It seems like that whole of crypto market was going down agian.

I also think that it will just die out unless the prosecutor had found traces of evidence that can pinpoint Binance of money laundering.  I think this is the way FTX going back at Binance of abandoning the deal that was supposed to save FTX from collapse.  But then, the decision of Binance is just because of the misappropriation of funds by FTX CEO and Binance doesn't want to be a part of it or catch a falling knife.

You can get rid of concerns about centralized exchanges including Binance exchange by withdraw your cryptocurrency from all accounts on centralized exchanges to your non custodial wallets.

When you finish your capital reallocation from exchange accounts to your wallets, you will be able to watch their drama, see fud and have no headache, no worry about your capital.

Only send your coins to your accounts on CEX if you want to sell your coins and after its completion, withdraw your fund instantly when you can.

these are all just assumptions at the end of the day, these kinds of fuds are worst because it could only trigger massive rush of withdrawals in binance therefore making things getting worser, we've had so much bad events already no need to add one more I guess, therefore I think binance will be fine and it shouldn't be a concern, I think eventually things will resolve it self, after all binance is among the ones that disclose their reserve to the masses.

I am interested in the question of what will happen to the funds stored on the custodial wallet in the Binance Smart Chain network if the Fud of the Binance exchange continues. Will they be safe, because we know that the BSC network was created by Binance, and therefore dependent on it.

At this point in time no one is going to take any risk, most likely binance is fine and it should be able to survive this crypto winter, but if there is a negative news regarding binance, even if it is just FUD, it should be more than enough for people to get their coins out of that exchange as soon as possible, because if the suspected FUD ends up being true then you will suffer the same fate as those that believed in FTX and SBF, and we know those people will never recover the money they left at that exchange.

And suddenly, the FUD has stop already, unfortunately, if did damage to the price. From as high as $18,200 and everyone is very happy that at least at the end of the year, we have reach that price, t o $16,700, huge difference because of the FUD on Binance out flows.

But the market subsided already, CZ already shows that his Binance and BNB is here to stay and no matter what the FUD are, he is going to fight it.

Just weeks from the end of the year, and hopefully altcoin market will show some uptick next year.

Interesting reading: With Binance, Everything Is Not Fine (https://www.coindesk.com/consensus-magazine/2022/12/19/cz-binance-crypto-exchange-red-flags-cnbc-ftx/)

Like Genevieve, I am not sure that everything is fine with Binance. This fiasco with FTX and FTT can backfire on Binance:

And there's that thing about the "proof of reserves", it's a bit shady what happened:

I guess they could choose some other accounting firm... we can wonder why are they running away from that.


Genevieve presented some nice arguments, and I can't say I don't agree with her. Don't get me wrong, I am using BNB and I like it but not everything is clear, FTX downfall raised some questions. I guess it's far from over, we can expect some turbulent days in crypto.

^^ And I guess we have to take the word of CZ that everything is fine with Binance, otherwise, it's better for us to withdraw our funds not just on Binance but on every exchanges if this is a big issue for us.

But it seems that the Binance outflows negative scenario is quiet now, and those who spread FUD around it maybe bought when the price of crypto goes down because the market reacted negatively. Everyone really has it's own objective creating this scenario that as big as Binance is, it might be the next one to fall.

Yes, there are arguments, but as crypto enthusiast, we should learn how to read between the lines as well.

This is the result of many FUD against Binance especially if the US government are so serious about sanctioning Binance for laundering. We might see more of this as we are still on a bear market and many are taking advantage of this to stay in a bear trend so they can get more cheaper coins, after this Fud I’m sure Binance will still be here and will become more powerful, watch out for their back up plans and their recovery.

They've taken down FTX and it's due to Binance's CEO hint. That's why those that have been included to that collapse made FUD against Binance.
I don't see any reason why people should be worried with withdrawals. It's just another thing that they've got into their exchange and if that's the money of people, they have no choice of stopping them. So far, I haven't seen any issue or complain about them being delayed for the withdrawal request.

It should be withdrawn to a personal wallet and that's really a huge recommendation since what has happened to FTX and the other exchanges is currently the main problem in today's era of the crypto industry. Since it became one of the biggest downsides to keeping your crypto in a centralized exchange, everyone should practice not relying on those exchanges when keeping their crypto rather they need to consider studying and learning how to keep their assets safe in their personal wallets of their choice and when that happened, I'm sure all of this doubts are cleared and we will return back again to normal with the crypto market increasing the cryptocurrencies price again.

At a time like this there is a lot of negativity towards the central exchange since FTX is attracting attention now there are lots of accusations or suspicions against the central exchange including Binance being the largest exchange. Therefore withdrawing assets into the wallet early is an option for crypto investors and traders to avoid issues that are interrelated with one another. From the start, Binance has clearly shown ownership of its assets to the public in order to reduce accusations out there, but since Binance itself declared war on FTX, inevitably there will be parties who will take advantage of this issue to erode Binance assets. I wouldn't be surprised because holding assets without trading them on a centralized exchange is quite risky.

I don't object to us withdrawing our assets to cold or non-custodial wallets, but people need to know that the FTX crash doesn't mean Binance will. Let's take a look at coinbase, founded in 2012 and still exists today despite the demise of Mt.gox in 2014. So far, Binance and coinbase are safe, and we still need to use them, we can't stop using them until we stop investing in crypto. I'm not too surprised that Fuds is targeting binance because FTX supporters won't give up on Binance easily.

It was just a great scare tactic by the media and the timing couldn't be better. As soon as FTX thing happened there were a lot of chatter about Binance because that would really hurt bitcoin price and the market a lot and someone wanted to hurt it.

I wouldn't be able to figure out if it was FTX people or people behind FTX that wanted to get revenge, or was it some whale who had a lot of fiat and wanted bitcoin even lower, or governments who hate bitcoin because they can't control it. I cannot possibly know the main reason but it is obvious that we are not going to end up seeing anything that would be remotely close to what the reality is, we would just assume.

This is the downside of a centralized exchange. Once your funds are on a centralized exchange, it means they are not your money anymore, it's already theirs.
And what I always hear from the CEOs of centralized exchanges is "Funds are safe." "We don't use customers' funds", etc.
Those sentences are easy to say. FTX Exchange already proved this.

About Binance outflows, if you really not using Binance, no need to put funds there, but if you are doing trading there, just put the amount how much you are willing to lose just incase or how much you are really using when you are trading.

We don't know anything for sure anymore about the legitimacy of these exchanges. They may be in serious conditions due to a high volume of simultaneous withdrawals or they may be fine. However, it's not the first time we hear an exchange is going bankrupt, and nothing happened next. Some weeks ago it was Crypto.com to be pointed as a potential next bankupted company and they are still fine by now. The CEO said they had all users' funds stored and under control. The problem is that we never know when the CEO is being honest and when they are lying.

In every cases, if you can withdraw your funds from exchanges, do this. At least until all the rumours cease.

Personally I think it's hard for Binance to commit a big mistake like this, especially after pointing fingers to their competitors.

Indeed, all assets should be placed in cold wallets. Hot wallets and exchanges will have problems at any time and will be attacked. I think everyone should have a cold wallet.

Indeed, FUD about Binance has appeared a lot and the impact of this FUD is that several large investors on Binance have begun to withdraw or take their money on a large scale.
But the CEO of binance CZ is a smart person in a business so there's no need to worry, in a short period of time binance will regain its trust and wealth back.
Some people are also not surprised that after the FTX crash someone will spread FUD about binance, after all the business competition is very cutthroat and can bring each other down even in subtle ways.

I would not put hot wallets and exchanges on the same side, since there is a significant difference between them. And this difference lies in the presence of a private key by you, and not from the exchange where you store your funds.

I guess its a temporary suspension only which mean exchange needs time to refill their hot wallets then the withdrawal will resume and that the story nothing we need to speculate about USDC with Binance cause its not owned by Binance but to my best knowledge its from coinbase. So you are saying coinbase is going down due to the FTX drama?