Data from on-chain monitoring resource Coinglass shows that Binance’s BTC balance dropped by more than 30,000 BTC on December 13.

Czechoslovakia: FUD is ‘totally annoying’
The latest hotspot of fallout from the FTX debacle, Binance has joined exchanges that have seen a mass exodus of user funds.

According to Coinglass, users have withdrawn 30,300 BTC ($515 million) in the 24 hours to time of writing, and that’s the majority of the week’s total of 40,150 BTC.

The abnormal behavior comes as Binance grapples with what its CEO, Changpeng Zhao (aka CZ) has covered with “FUD” on social media.

As Cointelegraph reported, nerves initially frayed after a report in Reuters suggested that the exchange would become the target of a money laundering lawsuit in the United States.

Zhao denied this and shared a statement from Binance refuting the report’s allegations.

Then, however, reports of major token withdrawals by Justin Sun, CEO and founder of TRON, exacerbated tensions.

Even though Zhao similarly took critics to task and Sun deposited $100 million to Binance, users quickly removed their own funds from their accounts. The temporary suspension of some withdrawals for Binance’s stablecoin, BUSD, was in effect at the time of writing.

“FUD helps us grow, even though they are just as annoying,” Zhao wrote in his latest Twitter thread on the subject:

“You can FUD about someone without explicitly saying their name, which spreads awareness. It also helps unite their supporters because it forms a common defense alliance.”
The events mimic those of the earlier FTX debacle, when exchange users collectively took custody of their funds. At that time, the BTC balance on Binance had already increased.

Binance BTC Balance vs BTC/USD Chart. Source: Coinglass
BTC rebound relief targets $17,500
BTC price action continued unaffected by the Binance panic, with BTC/USD rising to near $17,500 on the day, data from Cointelegraph Markets Pro and TradingView showed.

Related: “The Biggest Week of the Year” – 5 Things to Know in Bitcoin This Week

BTC/USD 1-hour candlestick chart (Bitstamp). Source: TradingView
Binance’s internal BNB token
BNB

pointers down
$246

, similarly recovered from a short drop to near $250 – its lowest since November 22nd.

On social media, the old hands looked adorable in the ring.

“If you are looking to minimize market impact on your BNB sales, I would happily buy one from you at $22!” Famous trader Pentoshi joked as FUD precipitated BNB/USD weakness.

LEAVE A REPLY