CZ, Binance CEO, responds to billions in exchange outflows.
Recent data suggests that cryptocurrency assets have been leaving centralized exchanges at a faster rate over the last week. However, the CEO of Binance, Changpeng Zhao, argues that the situation may not be as dire as it appears.
Analytics platforms such as Nansen and DefiLlama have reported increased outflows from Binance over the past seven days, following news of the Securities and Exchange Commission’s lawsuit against the company.
Nansen data shows a net outflow of $2.36 billion from Binance over the past week, with $123.7 million leaving Binance.US. DefiLlama reported an even larger figure of $3.35 billion in outflows from Binance, while Glassnode data shows the exchange’s BTC balance declining by 5.7% or around $1 billion over the past seven days.
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However, CZ argued that some outflow data can be misleading as some third-party analytics measure changes in assets under management as “outflow,” which would include times when crypto prices decline.
According to our data, last 24hrs, @Binance net outflow is about $392m. Our wallet addresses are public. Some 3rd party analytics measure Change in AUM (asset under management) in USD equivalent as outflow. This would include crypto price drops (which decrease AUM) as “outflow”….
— CZ Binance (@cz_binance) June 10, 2023
CZ claimed that the outflow from Binance on June 9 was around $392 million, which is significantly less than the $7 billion in one-day outflow that was recorded last year in November, around the time of FTX’s collapse.
CZ also noted that large inflows and outflows are normal during times of market volatility.
Related: Binance says it’s ‘different’ from other exchanges amid SEC lawsuit
Since the SEC’s lawsuits against Binance and Coinbase on June 5 and 6, the total market capitalization of the cryptocurrency market has declined by 7%, or more than $80 billion, according to CoinGecko.
On June 9, it was reported that decentralized finance volumes had increased by more than 400% following the lawsuits against centralized exchanges.
Magazine: Binance, Coinbase head to court, and the SEC labels 67 crypto-securities: Hodler’s Digest, June 4-10
