Investors who panicked after the CFTC's lawsuit against Binance withdrew their money from Binance.
According to the news of The Block, analysts said that these money outflows seen on Binance are still at relatively normal levels and there is no clear evidence that investors exit the stock market and return to the bank.
According to data from The Block Research, in approximately 45 hours after the CFTC case news, $ 2.2 billion in crypto money flowed from Binance, while $ 1.3 billion in crypto money flowed into the stock market in the same period.
This means that there is only $900 million net outflow from Binance.
Evaluating these outflows, Nansen Data Rapporteur Martin Lee said:
“There is no real sign yet of investors switching to banks.
Fears now appear to be much lower than solvency fears at the end of last year, following FTX's bankruptcy."
Apart from Lee, Tom Dunleavy, founder of Dunleavy Investment Research and Messari's former senior research analyst, also evaluated Binance exits.
“I've seen a lot of exaggerated headlines about the exits that Binance has experienced. However, these exits are actually less than usual.
No sign of a bank run. With these numbers, this would be extremely unlikely.”
A similar comment came from CryptoQuant CEO Ki Young Ju. Binance CEO CZ also retweeted the post.
Processing deposits and withdrawals for billions of dollars of crypto assets every day
Traders are pulling billions of dollars from @binance
— Ki Young Ju (@ki_young_ju) March 29, 2023