Huge Binance outflows - should we be concerned?

[ChillyMatthew]

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.

The world’s top crypto exchange Binance paused USDC withdrawals Tuesday due to a “token swap.” Binance saw a significant surge in withdrawals yesterday after a recent proof of reserves audit and rumors of legal issues raised concerns among investors using the world’s largest cryptocurrency exchange by volume.

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&

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[Jawhead999]

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.

[Dave1]

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.

[Bananington]

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.

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.

[Pam beasely]

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.

BinanceCoin slumps hard as the Binance FUD intensifies with more platforms displaying their concerns over the reserves of the platform

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?

[janggernaut]

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.

BinanceCoin slumps hard as the Binance FUD intensifies with more platforms displaying their concerns over the reserves of the platform

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.

[Wexnident]

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.

[crwth]

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 

[Bitstar_coin]

@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.

[kojektea]

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.

[jossiel]

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.

[cabron]

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.

[inthelongrun]

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.

[electronicash]

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.

[Kavelj22]

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.

[Jackl87]

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.

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.

[Yogee]

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.

BinanceCoin slumps hard as the Binance FUD intensifies with more platforms displaying their concerns over the reserves of the platform

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.

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.

[o48o]

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.

[albon]

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.

[zasad@]

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.