Topic: Huge Binance outflows - should we be concerned? (Read 445 times)
I guess its a temporary suspension only which mean exchange needs time to refill their hot wallets then the withdrawal will resume and that the story nothing we need to speculate about USDC with Binance cause its not owned by Binance but to my best knowledge its from coinbase. So you are saying coinbase is going down due to the FTX drama?
Indeed, all assets should be placed in cold wallets. Hot wallets and exchanges will have problems at any time and will be attacked. I think everyone should have a cold wallet.
I would not put hot wallets and exchanges on the same side, since there is a significant difference between them. And this difference lies in the presence of a private key by you, and not from the exchange where you store your funds.
^^ And I guess we have to take the word of CZ that everything is fine with Binance, otherwise, it's better for us to withdraw our funds not just on Binance but on every exchanges if this is a big issue for us.
But it seems that the Binance outflows negative scenario is quiet now, and those who spread FUD around it maybe bought when the price of crypto goes down because the market reacted negatively. Everyone really has it's own objective creating this scenario that as big as Binance is, it might be the next one to fall.
Yes, there are arguments, but as crypto enthusiast, we should learn how to read between the lines as well.
Indeed, FUD about Binance has appeared a lot and the impact of this FUD is that several large investors on Binance have begun to withdraw or take their money on a large scale.But it seems that the Binance outflows negative scenario is quiet now, and those who spread FUD around it maybe bought when the price of crypto goes down because the market reacted negatively. Everyone really has it's own objective creating this scenario that as big as Binance is, it might be the next one to fall.
Yes, there are arguments, but as crypto enthusiast, we should learn how to read between the lines as well.
But the CEO of binance CZ is a smart person in a business so there's no need to worry, in a short period of time binance will regain its trust and wealth back.
Some people are also not surprised that after the FTX crash someone will spread FUD about binance, after all the business competition is very cutthroat and can bring each other down even in subtle ways.
Everyone who holds their crypto in the Binance platform should be concerned because the bankruptcy and collapse of the FTX platform is not the last, so we can expect anything, so we have to take precautions and not hold our wealth except in a cold wallet and stay away from exchange platforms, although what happened to Binance differs about FTX only what Binance witnessed is a huge number of withdrawals within a week, which is the largest number of June, in addition to that there are many prominent figures in the crypto arena who spoke against Binance that Binance does not have enough Bitcoin to cover customers deposits, also, some parties are considering filing criminal charges against Binance and its owners for failing to comply with anti-money laundering penalties, so I do not know what fate hides for Binance after this violent attack against this top platform, but we must take precautions.
Indeed, all assets should be placed in cold wallets. Hot wallets and exchanges will have problems at any time and will be attacked. I think everyone should have a cold wallet. 
We don't know anything for sure anymore about the legitimacy of these exchanges. They may be in serious conditions due to a high volume of simultaneous withdrawals or they may be fine. However, it's not the first time we hear an exchange is going bankrupt, and nothing happened next. Some weeks ago it was Crypto.com to be pointed as a potential next bankupted company and they are still fine by now. The CEO said they had all users' funds stored and under control. The problem is that we never know when the CEO is being honest and when they are lying.
In every cases, if you can withdraw your funds from exchanges, do this. At least until all the rumours cease.
Personally I think it's hard for Binance to commit a big mistake like this, especially after pointing fingers to their competitors.
In every cases, if you can withdraw your funds from exchanges, do this. At least until all the rumours cease.
Personally I think it's hard for Binance to commit a big mistake like this, especially after pointing fingers to their competitors.
Everyone who holds their crypto in the Binance platform should be concerned because the bankruptcy and collapse of the FTX platform is not the last, so we can expect anything, so we have to take precautions and not hold our wealth except in a cold wallet and stay away from exchange platforms,
(....)
This is the downside of a centralized exchange. Once your funds are on a centralized exchange, it means they are not your money anymore, it's already theirs.(....)
And what I always hear from the CEOs of centralized exchanges is "Funds are safe." "We don't use customers' funds", etc.
Those sentences are easy to say. FTX Exchange already proved this.
About Binance outflows, if you really not using Binance, no need to put funds there, but if you are doing trading there, just put the amount how much you are willing to lose just incase or how much you are really using when you are trading.
I don't object to us withdrawing our assets to cold or non-custodial wallets, but people need to know that the FTX crash doesn't mean Binance will. Let's take a look at coinbase, founded in 2012 and still exists today despite the demise of Mt.gox in 2014. So far, Binance and coinbase are safe, and we still need to use them, we can't stop using them until we stop investing in crypto. I'm not too surprised that Fuds is targeting binance because FTX supporters won't give up on Binance easily.
It was just a great scare tactic by the media and the timing couldn't be better. As soon as FTX thing happened there were a lot of chatter about Binance because that would really hurt bitcoin price and the market a lot and someone wanted to hurt it.I wouldn't be able to figure out if it was FTX people or people behind FTX that wanted to get revenge, or was it some whale who had a lot of fiat and wanted bitcoin even lower, or governments who hate bitcoin because they can't control it. I cannot possibly know the main reason but it is obvious that we are not going to end up seeing anything that would be remotely close to what the reality is, we would just assume.
So you're a person who leave coins on centralized exchange? you're really stupid since exchange isn't a place to hold your coins, you must withdraw it to your hardware wallet. You can use ledger, trezor, bitbox etc depends on the hardware wallet you're interested. If you don't have money to buy hardware wallet, you can use non custodial wallet like Electrum, Bluewallet (Bitcoin). If you hold altcoins, maybe Metamask is a good option.
It should be withdrawn to a personal wallet and that's really a huge recommendation since what has happened to FTX and the other exchanges is currently the main problem in today's era of the crypto industry. Since it became one of the biggest downsides to keeping your crypto in a centralized exchange, everyone should practice not relying on those exchanges when keeping their crypto rather they need to consider studying and learning how to keep their assets safe in their personal wallets of their choice and when that happened, I'm sure all of this doubts are cleared and we will return back again to normal with the crypto market increasing the cryptocurrencies price again.
I don't object to us withdrawing our assets to cold or non-custodial wallets, but people need to know that the FTX crash doesn't mean Binance will. Let's take a look at coinbase, founded in 2012 and still exists today despite the demise of Mt.gox in 2014. So far, Binance and coinbase are safe, and we still need to use them, we can't stop using them until we stop investing in crypto. I'm not too surprised that Fuds is targeting binance because FTX supporters won't give up on Binance easily.
Since I'm pretty busy and can't keep track of everything, even though I'd like to, this is something that I don't understand very well and would like to get your opinion on.
So, Binance recently halted USDC withdrawals because outflows reached $2B, which indicates to me that many investors are worried about their state, even tho they resumed withdrawals shortly after that.
At a time like this there is a lot of negativity towards the central exchange since FTX is attracting attention now there are lots of accusations or suspicions against the central exchange including Binance being the largest exchange. Therefore withdrawing assets into the wallet early is an option for crypto investors and traders to avoid issues that are interrelated with one another. From the start, Binance has clearly shown ownership of its assets to the public in order to reduce accusations out there, but since Binance itself declared war on FTX, inevitably there will be parties who will take advantage of this issue to erode Binance assets. I wouldn't be surprised because holding assets without trading them on a centralized exchange is quite risky. So, Binance recently halted USDC withdrawals because outflows reached $2B, which indicates to me that many investors are worried about their state, even tho they resumed withdrawals shortly after that.
So you're a person who leave coins on centralized exchange? you're really stupid since exchange isn't a place to hold your coins, you must withdraw it to your hardware wallet. You can use ledger, trezor, bitbox etc depends on the hardware wallet you're interested. If you don't have money to buy hardware wallet, you can use non custodial wallet like Electrum, Bluewallet (Bitcoin). If you hold altcoins, maybe Metamask is a good option.
It should be withdrawn to a personal wallet and that's really a huge recommendation since what has happened to FTX and the other exchanges is currently the main problem in today's era of the crypto industry. Since it became one of the biggest downsides to keeping your crypto in a centralized exchange, everyone should practice not relying on those exchanges when keeping their crypto rather they need to consider studying and learning how to keep their assets safe in their personal wallets of their choice and when that happened, I'm sure all of this doubts are cleared and we will return back again to normal with the crypto market increasing the cryptocurrencies price again.
This is the result of many FUD against Binance especially if the US government are so serious about sanctioning Binance for laundering. We might see more of this as we are still on a bear market and many are taking advantage of this to stay in a bear trend so they can get more cheaper coins, after this Fud I’m sure Binance will still be here and will become more powerful, watch out for their back up plans and their recovery.
They've taken down FTX and it's due to Binance's CEO hint. That's why those that have been included to that collapse made FUD against Binance.I don't see any reason why people should be worried with withdrawals. It's just another thing that they've got into their exchange and if that's the money of people, they have no choice of stopping them. So far, I haven't seen any issue or complain about them being delayed for the withdrawal request.
these are all just assumptions at the end of the day, these kinds of fuds are worst because it could only trigger massive rush of withdrawals in binance therefore making things getting worser, we've had so much bad events already no need to add one more I guess, therefore I think binance will be fine and it shouldn't be a concern, I think eventually things will resolve it self, after all binance is among the ones that disclose their reserve to the masses.
This is the result of many FUD against Binance especially if the US government are so serious about sanctioning Binance for laundering. We might see more of this as we are still on a bear market and many are taking advantage of this to stay in a bear trend so they can get more cheaper coins, after this Fud I’m sure Binance will still be here and will become more powerful, watch out for their back up plans and their recovery. 
^^ And I guess we have to take the word of CZ that everything is fine with Binance, otherwise, it's better for us to withdraw our funds not just on Binance but on every exchanges if this is a big issue for us.
But it seems that the Binance outflows negative scenario is quiet now, and those who spread FUD around it maybe bought when the price of crypto goes down because the market reacted negatively. Everyone really has it's own objective creating this scenario that as big as Binance is, it might be the next one to fall.
Yes, there are arguments, but as crypto enthusiast, we should learn how to read between the lines as well.
But it seems that the Binance outflows negative scenario is quiet now, and those who spread FUD around it maybe bought when the price of crypto goes down because the market reacted negatively. Everyone really has it's own objective creating this scenario that as big as Binance is, it might be the next one to fall.
Yes, there are arguments, but as crypto enthusiast, we should learn how to read between the lines as well.
Interesting reading: With Binance, Everything Is Not Fine
Like Genevieve, I am not sure that everything is fine with Binance. This fiasco with FTX and FTT can backfire on Binance:
And there's that thing about the "proof of reserves", it's a bit shady what happened:
Genevieve presented some nice arguments, and I can't say I don't agree with her. Don't get me wrong, I am using BNB and I like it but not everything is clear, FTX downfall raised some questions. I guess it's far from over, we can expect some turbulent days in crypto.
Like Genevieve, I am not sure that everything is fine with Binance. This fiasco with FTX and FTT can backfire on Binance:
Quote
You see, in the eyes of the bankruptcy proceedings, transactions made by FTX to outside entities (like the $2.1 billion payment to Binance) may be considered fraudulent conveyances.
And there's that thing about the "proof of reserves", it's a bit shady what happened:
Quote
And remember when Binance released proof of reserves last month to calm the market in the fresh wake of FTX’s collapse?
It turns out the accounting firm that was assisting with that, Mazars Group, quite literally pulled the plug on the endeavor, effectively terminating the partnership by deleting the website containing the exchange’s proof of liabilities (or lack thereof, as it were).
I guess they could choose some other accounting firm... we can wonder why are they running away from that.It turns out the accounting firm that was assisting with that, Mazars Group, quite literally pulled the plug on the endeavor, effectively terminating the partnership by deleting the website containing the exchange’s proof of liabilities (or lack thereof, as it were).
Quote
This is a classic scenario for crypto exchanges, everything is fine … until it’s not.
If the stablecoins in Binance’s reserves hold to their peg, everything will be fine.
If it can provide true proof of reserves, everything will be fine.
If there’s no run on the bank, everything will be fine.
If it can deliver fully audited financials, everything will be fine.
If the U.S. Department of Justice decides not to strike with criminal charges (something we didn’t even get to in this essay), everything will be fine.
For each day that passes without specific and verifiable evidence to address all its issues, these “ifs” grow bigger for Binance.
If the stablecoins in Binance’s reserves hold to their peg, everything will be fine.
If it can provide true proof of reserves, everything will be fine.
If there’s no run on the bank, everything will be fine.
If it can deliver fully audited financials, everything will be fine.
If the U.S. Department of Justice decides not to strike with criminal charges (something we didn’t even get to in this essay), everything will be fine.
For each day that passes without specific and verifiable evidence to address all its issues, these “ifs” grow bigger for Binance.
Genevieve presented some nice arguments, and I can't say I don't agree with her. Don't get me wrong, I am using BNB and I like it but not everything is clear, FTX downfall raised some questions. I guess it's far from over, we can expect some turbulent days in crypto.
And suddenly, the FUD has stop already, unfortunately, if did damage to the price. From as high as $18,200 and everyone is very happy that at least at the end of the year, we have reach that price, t o $16,700, huge difference because of the FUD on Binance out flows.
But the market subsided already, CZ already shows that his Binance and BNB is here to stay and no matter what the FUD are, he is going to fight it.
Just weeks from the end of the year, and hopefully altcoin market will show some uptick next year.
But the market subsided already, CZ already shows that his Binance and BNB is here to stay and no matter what the FUD are, he is going to fight it.
Just weeks from the end of the year, and hopefully altcoin market will show some uptick next year.
these are all just assumptions at the end of the day, these kinds of fuds are worst because it could only trigger massive rush of withdrawals in binance therefore making things getting worser, we've had so much bad events already no need to add one more I guess, therefore I think binance will be fine and it shouldn't be a concern, I think eventually things will resolve it self, after all binance is among the ones that disclose their reserve to the masses.
At this point in time no one is going to take any risk, most likely binance is fine and it should be able to survive this crypto winter, but if there is a negative news regarding binance, even if it is just FUD, it should be more than enough for people to get their coins out of that exchange as soon as possible, because if the suspected FUD ends up being true then you will suffer the same fate as those that believed in FTX and SBF, and we know those people will never recover the money they left at that exchange. You can get rid of concerns about centralized exchanges including Binance exchange by withdraw your cryptocurrency from all accounts on centralized exchanges to your non custodial wallets.
When you finish your capital reallocation from exchange accounts to your wallets, you will be able to watch their drama, see fud and have no headache, no worry about your capital...
When you finish your capital reallocation from exchange accounts to your wallets, you will be able to watch their drama, see fud and have no headache, no worry about your capital...
I am interested in the question of what will happen to the funds stored on the custodial wallet in the Binance Smart Chain network if the Fud of the Binance exchange continues. Will they be safe, because we know that the BSC network was created by Binance, and therefore dependent on it.
these are all just assumptions at the end of the day, these kinds of fuds are worst because it could only trigger massive rush of withdrawals in binance therefore making things getting worser, we've had so much bad events already no need to add one more I guess, therefore I think binance will be fine and it shouldn't be a concern, I think eventually things will resolve it self, after all binance is among the ones that disclose their reserve to the masses.
You can get rid of concerns about centralized exchanges including Binance exchange by withdraw your cryptocurrency from all accounts on centralized exchanges to your non custodial wallets.
When you finish your capital reallocation from exchange accounts to your wallets, you will be able to watch their drama, see fud and have no headache, no worry about your capital.
Only send your coins to your accounts on CEX if you want to sell your coins and after its completion, withdraw your fund instantly when you can.
When you finish your capital reallocation from exchange accounts to your wallets, you will be able to watch their drama, see fud and have no headache, no worry about your capital.
Only send your coins to your accounts on CEX if you want to sell your coins and after its completion, withdraw your fund instantly when you can.
The outflows reached $2B because many people were victims of FTX saga...
No, this outflow is not a consequence of the FTX collapse, it is related to the Reuters message, which states that the US Department of Justice may charge the Binance crypto exchange and its executives with money laundering and sanctions violations. I think this Fud will dissipate soon.
I also think that it will just die out unless the prosecutor had found traces of evidence that can pinpoint Binance of money laundering. I think this is the way FTX going back at Binance of abandoning the deal that was supposed to save FTX from collapse. But then, the decision of Binance is just because of the misappropriation of funds by FTX CEO and Binance doesn't want to be a part of it or catch a falling knife.
Jump to: