While the data suggests that crypto assets have been leaving centralized exchanges at a rapid pace over the past week, Binance CEO Changpeng Zhao argues that it may not be as bad as it seems.
Major analytics platforms such as Nansen and DeFiLlama have measured the rise in Binance's exchange outflows over the past seven days after news of the SEC's lawsuit against the company hit the airwaves.
According nansenthere has been a net outflow of $2.36 billion from Binance in the last seven days along with $123.7 million from Binance.US.
DeFillama reported an even higher figure of $3.35 billion in outflows from Binance, while Glassnode data shows the exchange BTC the balance decreased 5.7% or about $1 billion in the last seven days.
However, in a June 10 Twitter post, CZ argued that some exchange output data may be skewed, as some third-party analytics measure the change in assets under management as "output," which would include times when that the prices of cryptocurrencies decrease.
According to our data, last 24 hours, @Binance the net outflow is about $392 million.
Our wallet addresses are public. Some third-party analytics measure the change in AUM (assets under management) in USD equivalent to output. This would include crypto price drops (decreasing AUM) as "exit"....
โCZ Binance (@cz_binance) June 10, 2023
Instead, CZ claimed that the company's output in the last 24 hours on June 9 was around $392 million, which pales in comparison to the $7 billion in one-day output that was recorded last year. last in November, at the time of the FTX collapse.
CZ went on to explain that large entries and exits are perfectly normal in times of volatility.
โSome even only measure the outputs, not the inputs. On a strong price day like today, many arbitrage traders move a large amount of funds between exchanges, typically exponentially more than on normal days."
Related: Binance Says It's 'Different' From Other Exchanges Amid SEC Lawsuit
Since June 6 when the SEC he unleashed his attacks On both Coinbase and Binance, crypto market capitalization has declined by 7%, or more than $80 billion, according to CoinGecko.
On June 9, Cointelegraph reported that decentralized finance (DeFi) volumes arose over 400% following twin lawsuits targeting centralized exchanges.
Magazine: Binance, Coinbase Head to Courts, and SEC Labels 67 Crypto Securities: Hodler's Digest, June 4-10
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