The CEO of Binance, the world's largest cryptocurrency exchange by trading volume, dismissed reports of large outflows of funds from his platform, along with the sharp drop in crypto prices.
CZ: "$392 Million Net Fund Outflow from Binance in the Last 24 Hours"
Changpeng Zhao, also known as CZ, stated in a tweet on Saturday that Binance's net exit in the last 24 hours was approximately $392 million.
He also explained that some third-party analytics tools may have misinterpreted the change in the value of assets under management (AUM) on Binance as an exit without taking into account price fluctuations or inflows.
He added that in days like today when the crypto market is undergoing a major correction, many arbitrage traders will move funds between exchanges to take advantage of price differences, which will lead to higher volume transfers.
CZ's announcement comes after some crypto analysts and media outlets reported that Binance has seen billions of dollars worth of outflows over the past few days.
CZ also reminded that in November, when the FTX collapse occurred, the stock market processed $ 7 billion in funds outflows in one day.
In addition, the cryptocurrency analyst platform Spot On Chain also stated that the information about fund outflows through Binance may be wrong:
“As another thing, some are only based on a short time frame like a few days or a week and come to the definitive conclusion that there is a sharp increase in Binance exits.
However, in the big picture this is not entirely true.
From the chart below, we can see that Binance's currency balance is on an upward trend and is significantly higher compared to December 2022.”
*Not investment advice.
