Crypto giant Binance is said to be bleeding and has lost about $12 billion in assets. According to Forbes, investors have been pulling their crypto in recent weeks in the wake of recent collapse of rival FTX in November 2022. Data from crypto data firm Defillama reveals that customers withdrew a net $360 million on Friday.
Outflows are accelerating despite assurance from CEO Changpeng Zhao that the situation had stabilized.
On the 13th of December 2022, Nansen, a crypto data form tweeted that Binance had lost about $3.6 billion of assets over the previous week, representing 4% of the firm’s total at the time.
Forbes however stated that it carried out its own investigation which revealed that Binance lost 15% of its assets since a Twitter posting by Zhao (widely known as CZ) on the same day as he downplayed the Nansen report withdrawals. Still nearly a quarter of Binance assets left the exchange in less than two months.
Forbes opines that investors are losing trust in the largest exchange in the world and this can be seen in the performances of the exchange’s tokens – Binance Coin (BNB) and Binance USD (BUSD).
“BNB lost 29% of its value in the past two months, and Forbes estimates that leaves about 29 million of the tokens at Binance, 51% less than disclosed by the exchange on November 10. Meanwhile the number of BUSD stablecoins at the firm sank by 40%.”
The overall crypto market has not fared well in the last couple of months. According to CoinMarketCap data, the overall value of cryptocurrencies has shown big decline, dropping 56% over the past year, to $848.7 billion.
Binance has not made any official statement on this story yet.
