On December 13th, daily withdrawals on the platform of the global cryptocurrency exchange Binance reached approximately $8 billion. This was a tremendous increase from the previous day. After the unexpected withdrawals, widespread panic set in and began to spread.
Binance CEO CZ tweeted “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.”
Binance even temporarily halted withdrawals of the major USDC stablecoin, citing a token swap. CZ later tweeted that this FUD brought a “stress test”, which in turn helps to build credibility for exchanges that pass the test.
CZ added “If you want to hold your own coins, feel free to use @TrustWallet. Please keep your private keys safe. Otherwise, we are here @binance.”
A study that was distributed by Mazars the week before last said that Binance’s bitcoin assets were overcollateralized. As a consequence of multiple disturbing tales that were published about Binance and as investors were increasingly hesitant to deposit their money on controlled exchanges, there was a rise in the number of withdrawals.
Compiled by Coinbold