Binance Net Withdrawals May Have Reached $12 Billion

Key Insights

• Forbes has recently released a report claiming Binance continued to lose assets several months after the collapse of FTX. 
• The market capitalization of Binance’s stablecoin declined, but the native token BNB is moving higher together with the whole crypto market. 
• Crypto traders ignored Forbes’ report, and it looks that they do not believe that Binance has serious problems. 

Forbes Claims That Binance Is Losing Assets At A Robust Pace

According to Forbes, the situation with Binance withdrawals has not stabilized despite the rebound in crypto markets after the collapse of the FTX exchange.

Forbes claims that Binance lost $12 billion in assets as users kept moving funds out of the exchange. Interestingly, Binance’s native token, BNB, enjoyed a strong rebound in recent days, together with other coins. The market capitalization of Binance’s stablecoin, BUSD, declined from the highs near the $23 billion level in November towards the $16.4 billion level.

Forbes’ calculations indicated that investors were reducing their exposure to Binance. This is important for the whole crypto market as Binance is the undisputed leader among centralized exchanges. In case crypto investors stay nervous about the safety of their funds, the industry may face problems attracting new money.

Crypto Markets Keep Moving Higher At The Start Of The Week

At this point, it looks that crypto traders got accustomed to the constant flow of negative news. The market did not react to Forbes’ report on Binance, and cryptocurrencies continued to rebound.

Bitcoin settled above the $17,300 level, while Ethereum moved towards $1350. Solana, which suffered after the collapse of FTX but enjoyed strong support in recent days, moved above the $16.00 level.

It remains to be seen whether withdrawals from the Binance exchange will put any material pressure on the crypto market in the near term. Binance has previously claimed that it had no debt and that user’s assets were always backed 1:1.

It looks that the market believes that the exchange has no serious problems. If Binance shows any serious signs of weakness, crypto markets may find themselves under huge pressure due to Binance’s dominant position in crypto trading.

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