The Binance cryptocurrency exchange platform, the most important in the world, affirms that user deposits are recovering after recognizing the net outflow of 1,140 million dollars -1,080 million euros- this Tuesday, which set off all the alarms for the possible turbulence in another firm in the sector.
After the fall of FTX, which Binance tried to rescue, the focus of mistrust has been placed on it. The founder and CEO, Changpeng “CZ” Zhao, has come out to calm the doubts that are raging about the sector, arguing that people “generalize” and that there will be no contagion effect. “Things seem to have stabilized,” he commented on Twitter. “Some days we have net withdrawals, other days we have net deposits. Normal for us. It is not among the 5 days with the most processed withdrawals that we have seen,” he insisted to downplay the matter. As an example, with the fall of Luna or FTX they managed more transactions.
Figures in hand, in the last 24 hours the net flow shows investment inflows for 256 million, but the balance of the last week is an outflow of 1,200 million, according to data from the blockchain analysis firm Nansen. “There is no number of withdrawals that puts us under pressure,” Zhao puffed out his chest in a meeting on Twitter.
The words come after restricting withdrawals in USDC, its stablecoin linked to the dollar, for about eight hours this Tuesday, coinciding with the increase in withdrawals. In a memo sent to Binance staff seen by Bloomberg, the founder anticipated that the next few months “will be difficult,” though he stressed that the platform will get through this difficult period.
According to data revealed in November, the platform has 69,000 million in digital assets in portfolios. Zhao says that the reserves cover the deposits. “User assets are backed (at a ratio) 1:1 and Binance’s capital structure is debt free,” a company spokesperson responded to Bloomberg. The company has wanted to increase transparency with the publication of its figures -by not listing it does not make them public-, with a report of the accounts signed by the Mazars auditor, but it has not provided a complete picture.
Binance was founded in China in 2017 and later moved its headquarters to the Cayman Islands shortly before the Beijing government launched strict regulations for the cryptocurrency market.
