Crypto Markets Bounce Back, No Mass Exodus From Binance
Crypto markets are showing solid recovery just a day after the news broke regarding the resignation of one of the industry’s most enigmatic and influential characters. Moreover, there has been no panic or mass exodus from Binance which is ticking along as usual.
There was no surge in Binance exchange withdrawals following the settlement of charges against Binance and CEO Changpeng “CZ” Zhao in the United States.
No Binance Exodus
Binance is the world’s largest crypto exchange by volume. The charging and resignation of its CEO, a highly influential industry leader, should have crashed crypto markets.
But it didn’t.
According to on-chain analytics provider Nansen, there was no mass exodus of funds from the exchange in the 24 hours that followed the news breaking.
On Nov. 22, Nansen reported that “withdrawals are continuing, and we’re not seeing a mass exodus of funds.”
There was a slightly elevated outflow with a $956 million negative net flow in the day that followed the news, but nothing alarming.
In fact, Binance’s total holdings value increased to $65.2 billion as crypto asset prices rose.
Nansen noted that there were two much larger outflows from Binance over the past year. One was in December 2022 after insolvency rumors and the immediate aftermath of FTX. The second was in June after the SEC sued the company.
On Nov. 22, BeInCrypto reported that Binance would likely be able to pay the full $4.3 billion fine without selling any crypto. This is because it holds more than $6 billion in corporate assets.
In response to this revelation, the new CEO Richard Teng said, “The fundamentals of our business are VERY strong,” before adding.
“Binance continues to operate the world’s largest crypto exchange by volume, our capital structure is debt-free, expenses are modest, and, despite the low fees we charge our users, we have robust revenues and profits.”
Crypto Markets Bounce Back
Crypto markets have fully recovered from the minor blip caused by the Binance news.
As a result, total capitalization is up 4.8% on the day to reach $1.48 trillion with $70 billion entering the space over the past 24 hours.
Bitcoin is up 3.8% on the day at $37,430 during the Thursday morning Asian trading session. Meanwhile, Ethereum has made 5.4% to reach $2,068 at the time of writing.
Other altcoins posting solid gains at the moment include Solana (SOL), Avalanche (AVAX), and Uniswap (UNI).