Huge Binance outflows - should we be concerned?

[Flexystar]

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!

[eaLiTy]

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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.

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.

[serjent05]

What is all the fuss surrounding Binance?

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  .

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&

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.

[cryptomaniac_xxx]

What is all the fuss surrounding Binance?

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  .

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&

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.

[vv181]

Huge Binance outflows - should we be concerned?

Reminder: do not keep your money in online accounts

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.

[zasad@]

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.

[CryptoYar]

Huge Binance outflows - should we be concerned?

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

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.

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

[Raflesia]

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.

[Silberman]

Huge Binance outflows - should we be concerned?

Reminder: do not keep your money in online accounts

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.

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.

[Xal0lex]

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.

[tabas]

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.

[tvplus006]

The outflows reached $2B because many people were victims of FTX saga...

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.

[poodle63]

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?

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.

[serjent05]

The outflows reached $2B because many people were victims of FTX saga...

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.

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.

[SquirrelJulietGarden]

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.

[lobo13hf]

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.

[tvplus006]

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...

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.

[Silberman]

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.

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.

[Kemarit]

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.

[iv4n]

Interesting reading: With Binance, Everything Is Not Fine

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

You see, in the eyes of the bankruptcy proceedings, transactions made by FTX to outside entities (like the $2.1 billion payment to Binance) may be considered fraudulent conveyances.

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

And remember when Binance released proof of reserves last month to calm the market in the fresh wake of FTX’s collapse?
It turns out the accounting firm that was assisting with that, Mazars Group, quite literally pulled the plug on the endeavor, effectively terminating the partnership by deleting the website containing the exchange’s proof of liabilities (or lack thereof, as it were).

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

This is a classic scenario for crypto exchanges, everything is fine … until it’s not.
If the stablecoins in Binance’s reserves hold to their peg, everything will be fine.
If it can provide true proof of reserves, everything will be fine.
If there’s no run on the bank, everything will be fine.
If it can deliver fully audited financials, everything will be fine.
If the U.S. Department of Justice decides not to strike with criminal charges (something we didn’t even get to in this essay), everything will be fine.
For each day that passes without specific and verifiable evidence to address all its issues, these “ifs” grow bigger for Binance.

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.