The current Bitcoin (BTC) outflow of over 39K tokens comes in the wake of the prevailing FUD surrounding the exchange.
Binance, the world’s largest exchange by 24-hour trade volume, has just witnessed its largest bitcoin (BTC) outflow in 24 hours, as customers withdrew up to 39,637 BTC from the centralized exchange in the past 24 hours. The massive outflow has been triggered by the recently-engineered FUD surrounding Binance, which certain market watchers think is unfounded.
Dylan LeClair, notable bitcoin proponent and senior analyst at digital asset fund UTXO Management, highlighted the development today as he shared a Glassnode chart to corroborate his claim. “Largest 24h flow of BTC out of Binance ever: -39,637 BTC,” LeClair disclosed in a recent tweet.
Largest 24h flow of $BTC out of Binance ever:
-39,637 BTC pic.twitter.com/nraXyco6Ai
— Dylan LeClair 🟠 (@DylanLeClair_) December 13, 2022
The outflow of 39,637 BTC translates to a whopping $705M+ in bitcoin withdrawn from the exchange in the past 24 hours. However, the exchange has witnessed outflows in assets other than BTC, as highlighted by co-founder and CEO Changpeng “CZ” Zhao. According to CZ, Binance has seen net withdrawals to $1.14B today alone.
We saw some withdrawals today (net $1.14b ish). We have seen this before. Some days we have net withdrawals; some days we have net deposits. Business as usual for us.
I actually think it is a good idea to “stress test withdrawals” on each CEX on a rotating basis. 💪
— CZ 🔶 Binance (@cz_binance) December 13, 2022
CZ noted that they have witnessed such mass withdrawals in the past, and there is nothing to be concerned about, assuring investors that the trend is business as usual for the platform. Recall that the FTX saga began with mass withdrawals from the platform triggered by growing FUD surrounding the exchange as investors looked to get their funds out in the event of insolvency.
‘I actually think it is a good idea to “stress test withdrawals” on each CEX on a rotating basis. It costs some network fees to run these “tests.” But keeps the industry healthy,’ CZ added, referring to a tweet he made last month on exchanges making sure they hold customers’ assets as they are on the platform in the wake of the FTX collapse.
CZ’s comments came as a response to remarks made by the crypto investor and founder of Boxmining, Michael Gu. Gu had revealed that he carried out approximately ten transactions in withdrawals on Binance, which were all handled within an hour. Gu commended the exchange for handling the mass withdrawals well. Others have also disclosed that withdrawals are running smoothly.
The Binance FUD picked up amid growing concerns of centralized exchanges being at risk of insolvency. Concerns surrounding Binance particularly emerged following certain reports on the exchange. Yesterday, a Reuters report disclosed that the U.S. Department of Justice is considering charging Binance execs for possible money laundering cases. CZ responded by debunking some of the claims made in the Reuters report.