Binance Loses $12 Billion in Assets Due to User Withdrawals

Binance Loses $12 Billion in Assets Due to User Withdrawals


Despite the recovery of the cryptocurrency markets after the collapse of the FTX exchange, the situation with the withdrawal of funds on Binance has not yet returned to normal. According to a recent Forbes report, Binance has lost $12 billion in assets as users continue to withdraw money from the exchange.

Binance, the leading crypto exchange, is currently struggling to hold on to its holdings. Investors have been selling their cryptocurrency since competitor FTX collapsed, and despite CEO Changpeng Zhao’s claims that the situation has calmed down, the outflow is now only accelerating.

Defillama, a cryptocurrency data company, said that Binance customers withdrew a net amount of $360 million on Friday. In addition, another cryptocurrency statistics company, Nansen, said in December that the platform had lost $3 billion in assets in the previous week, which at the time equaled 4% of the company’s total assets. According to a Forbes study, Binance lost 15% of its assets. However, in less than two months, roughly 25% of Binance’s assets left the exchange.

The performance of Binance Coin (BNB) and Binance USD (BUSD), the exchange’s native tokens, is the best indicator of investor distrust. According to Forbes, BNB has lost 29% of its value in the past two months, leaving 29 million tokens on Binance, a 51% decrease from what the exchange announced on Nov. 10.

The trading platform has been hit by a nearly year-long drop in digital assets, although it is still the largest cryptocurrency exchange by volume. According to Nomics, their BNB token has dropped over 37% year-over-year. What’s more, Forbes estimates that the exchange lost about $3 billion annually as a result of ending spot trading fees for bitcoin (BTC) when its price plummeted.

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