world’s largest cryptocurrency exchange Binance hits record high after rival exchange FTX collapse Bitcoin, Ethereum and stablecoin withdrawal.
15% of Bitcoins Owned by Binance Withdrawn from the Exchange
According to data from CryptoQuant, Binance noted that over the past six days, a net 81,712 bitcoins ($1.35 billion), or more than 15% of the roughly 500,000 bitcoins on its exchange, have been withdrawn from the platform.
In addition, a net 125,026 Ethereum ($155 million) and $1.14 billion stablecoins were withdrawn from Binance in the same period.
In a statement on Twitter Monday morning, Binance CEO Changpeng Zhao called for calm and said that a “slight” increase in withdrawal speed is normal when prices of cryptocurrencies fall.
With Coinglass showing the amount of cryptocurrencies withdrawn from exchanges as approximately 200,000 Bitcoins in the last seven days and the amount of BTC held on exchanges falling to 1.88 million, withdrawals are an industry-wide problem.
Coinbase, Gemini, and Kraken are among the crypto brokers that have seen similar percentage drops to Binance.
The rapid exits were triggered by the collapse of one of the largest exchanges, FTX, before filing for bankruptcy last week.
Speculation about the company’s finances has risen after a CoinDesk report found deficits in the balance sheet of FTX’s sister company, Alameda Research. Customers moved to quickly withdraw funds from FTX, which caused a liquidity crunch.
In a matter of days, FTX’s Bitcoin balance dropped from about 20,000 to just 1.
Binance made an attempt to buy FTX earlier last week and signed a non-binding letter of intent, but abandoned the deal after 24 hours.
*Not investment advice.
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