Billion-Dollar Exits from Binance: CEO CZ Breaks the Silence
Binance sees accelerated crypto outflows; CEO Changpeng Zhao argues it's not alarming.
Recent data shows crypto assets leaving centralized exchanges at an accelerated rate, particularly from Binance, following the SEC lawsuit against the firm. However, Binance CEO Changpeng Zhao (CZ) asserts the situation might not be as severe as it appears.
Analytics platforms, including Nansen and DeFiLlama, noted increased outflows from Binance in the past week. According to Nansen, Binance experienced a net outflow of $2.36 billion, with an additional $123.7 million leaving Binance US. DeFiLlama reported an even higher outflow of $3.35 billion, while Glassnode data reveals a balance drop of around 5.7% or $1 billion over the same period.
In a June 10 tweet, CZ argued that outflow data can be misleading, as some analytics platforms categorize a decrease in assets under management as "outflow," including when crypto prices drop. He maintained that the actual outflow on June 9 was around $392 million, significantly less than the $7 billion recorded in a single day last November.
CZ further noted that large inflows and outflows are common during volatile periods, with arbitrage traders often moving substantial funds between exchanges.
Following the SEC's actions against Binance and Coinbase since June 6, the crypto market capitalization has shrunk by 7%, losing over $80 billion, as per Coinpaprika. As a result, the decentralized finance (DeFi) sector saw a surge in volumes, rising over 400% after the lawsuits against centralized exchanges.
