The CEO of Binance, Changpeng Zhao, said that the exchange experienced a net outflow of $392 million on Saturday, June 10, 2023. This is days after the US Securities and Exchange Commission filed a lawsuit against the American subsidiary of the company, Binance US. Apparently, there has been speculation that the exchange’s customers are in panic mode. This seems to have been highlighted by third-party analytics companies.
Two different things
To clear the air, Zhao said,
“According to our data, Binance’s net outflow in the last 24 hours was approximately $392 million.” Our wallet addresses are public. Some 3rd-party analytics measure changes in AUM (asset under management) in USD equivalent as outflow. This would include crypto price drops (which decrease AUM) as “outflow”. They are two different things.”
Changpeng Zhao added that some analytics companies even go to the extent of recording and publishing only the outflows from Binance, overlooking the inflow.
“On a sharp price movement day like today, many arbitrage traders move a lot of funds between exchanges, usually exponentially more than on normal days,” he said.
According to our data, last 24hrs, @Binance net outflow is about $392m.
Our wallet addresses are public. Some 3rd party analytics measure Change in AUM (asset under management) in USD equivalent as outflow. This would include crypto price drops (which decrease AUM) as “outflow”.…
— CZ 🔶 Binance (@cz_binance) June 10, 2023
Just another day in crypto
The Binance CEO said that there is nothing unusual about the day’s outflow from the exchange, adding that last November, the exchange actually experienced an outflow of $7 billion in one day.
BSC News corroborated what the Binance CEO said, insisting that the outflow was nothing out of the ordinary. According to them, it is just another day in crypto.
Spot On Chain, an on-chain data platform, is explained with a chart.
“One more thing, some only capture a short time frame, like a few days or a week, and give a quick conclusion that there is a sharp increase in Binance outflow. However, it is totally not true in the bigger picture. From the below graph, we can see that the exchange balance of Binance is on an increasing trend and significantly high compared with December 2022,” they said.