Binance, the world’s largest cryptocurrency exchange, is going through a rough patch, losing almost 25% of its assets in less than 60 days as CEO Changpeng ‘CZ’ Zhao runs the exchange without a chief financial officer.
Binance Loses 25% of Its Assets
In mid-December, CZ reported that Binance had recorded over $3 billion in outflows but assured users that the exchange would survive any crypto winter. However, the outflow of cash from Binance is significantly worse than CZ indicated.
According to a recent analysis of the exchange, Binance has recorded over $12 billion in asset outflows in the last two months, with $360 million coming last Friday. The BNB coin has also lost 30% of its value within that time, leaving Binance with only 29 billion of the coin.
On December 14th, the amount of Binance USD (BUSD) held by the exchange fell by $3.5 billion as users swapped the stablecoin for USDC and USDT. The number of BUSD stablecoins held by Binance has fallen by 40%, amounting to a 25% loss in all assets.
Why is Binance Losing Assets?
The performances of BNB and BUSD reflect the growing lack of investors’ trust in the exchange. The exchange’s asset holdings fell by 15% in a single day as CZ downplayed the Nansen report withdrawals in mid-December.
Binance also allegedly sent $232 million in BUSD to Binance.US. However, the move has sparked questions about CZ’s capability to manage the exchange, which has been without a Chief Financial Official (CFO) since the departure of Zhou Wei in June 2021.
On the Flipside
- Binance’s co-founder He Yi has said that no employee of the company is allowed to conduct personal short-term crypto transactions and must hold the position for more than 90 days before trading.
Why You Should Care
Binance has not emerged unscathed by the nearly yearlong crypto decline, worsened by several top companies’ collapse.
Read about CZ’s reaction to outflows in:
Binance Outflows Tops $3 Billion, CZ Says the Exchange Will Survive Any Crypto Winter
The exchange’s recent expansion moves are covered below:
Binance Moves to Acquire South Korean Crypto Exchange GOPAX: Sources