Binance users withdraw over $1 billion from the exchange in 24 hours

Binance users have withdrawn over $1 billion from the exchange in 24 hours.

 

Newsonline Nigeria reports that since founder and CEO Changpeng Zhao resigned and pled guilty in a settlement with the Department of Justice, outflows from Binance have exceeded $1 billion in the preceding twenty-four hours, excluding bitcoin, according to data from blockchain analysis firm Nansen.

 

This Nigeria news platform understands that in a report by CNBC on Wednesday, it was noted that within 24 hours, the native token of the exchange, BNB, has declined by over 8%. 

 

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The report was based on data from Nansen, which showed that Binance possesses BNB tokens valued at approximately $2.8 billion.

 

Furthermore, the exchange experienced a decline in its market share of spot trading in March subsequent to the elimination of zero-fee trading for crypto asset pairs, including bitcoin, which was a significant customer incentive. 

 

Years of inquiry into the cryptocurrency exchange has been concluded with a plea deal and the United States government also received $4.3 billion in penalties from Binance. 

 

In comparison to when the exchange and its founder were charged with thirteen securities violations by the SEC, the current outflows are substantial. 

 

With an annual trading volume of billions of dollars, Binance continues to be the largest cryptocurrency exchange in the world. 

 

Binance is presumably sufficiently capitalised to withstand an abrupt exodus of investors, as more than $65 billion in assets continue to be held on the platform, as reported by Nansen. A “mass exodus” of funds from the exchange has not yet occurred, despite the fact that withdrawals are increasing. 

 

Analysts views

A market analyst at investment firm Conotoxia Ltd Grzegorz Drozdz, told CNBC that: 

• “After the momentary shock of the agreement with the announcement, there is no significant impact on most assets.
• “The cryptocurrency that seems to have suffered the most, losing more than 9%, is the BNB token from Binance. Of the top 100 cryptocurrencies, as many as 98 have seen a noticeable rebound over the past 24 hours. Bitcoin, meanwhile, fell 4% before rebounding and remaining with a loss of 1.3%.”

 

Despite the turbulent situation, experts with whom CNBC spoke predicted that Binance would likely survive the ordeal, citing the company’s compliance with the DOJ process, implementation of a three-year strategy to bring its operations into compliance, and the value of assets held in the company’s reserves. 

 

Newsonline Nigeria earlier reported that the naira maintained its stability in the cryptocurrency market despite the $4.3 billion settlement with U.S. authorities, trading against the dollar on Binance within the range of N1120 to N1150.