Binance appears to be suffering from a decline in liquidity. A report from crypto analytics firm Nansen, indicates that Binance had net withdrawals of more than $3.6 billion from Dec. 7 to Dec. 13.
Binance gross outflows have been approximately $8.8 billion, while gross inflows have been around $5.1 billion.
Binance Netflow 7D ($) -3,660,311,347
8,783,380,428 - លំហូរចេញ
5,123,069,081 - លំហូរចូលផ្ទាំងគ្រប់គ្រងលំហូរផ្លាស់ប្តូរ ⤵️https://t.co/CYrBQLryQ0 pic.twitter.com/vV6vcqoWKK
— Nansen (@nansen_ai) ខែធ្នូ 13, 2022
In addition, while Binance saw more than $2 billion in daily net inflows of Ethereum ERC-20 tokens back in November, that’s reversed into outflows of over $1 billion from Dec. 12-13.
According to Nansen technician Andrew Thurman, the drop in liquidity may have been partially caused by large market makers exiting the exchange. Thurman’s research suggested that Wintermute ដក over $300 million on Dec. 11-12 and Jump Finance បានលោះ over $30 million in Binance USD (BUSD) from Dec. 12-13.
Binance is the world’s largest cryptocurrency exchange by volume, but it បានស្ថិតនៅក្រោមសម្ពាធ on Dec. 12 when a report បានអះអាង that the U.S. Department of Justice is considering charging its executives with financial crimes. The Department of Justice has not released an official statement about the matter, but Binance has claimed that the report is “wrong.”
រ៉យទ័រ ធ្វើខុសទៀតហើយ។
ឥឡូវនេះពួកគេកំពុងវាយប្រហារក្រុមអនុវត្តច្បាប់ដែលមិនគួរឱ្យជឿរបស់យើង។ ក្រុមដែលយើងមានមោទនភាពមិនគួរឱ្យជឿ - ពួកគេបានធ្វើឱ្យគ្រីបតូកាន់តែមានសុវត្ថិភាពសម្រាប់យើងទាំងអស់គ្នា។
នេះជាសេចក្តីថ្លែងការណ៍ពេញលេញដែលយើងបានផ្ញើអ្នកយកព័ត៌មាន និងប្លក់អំពីក្រុមអនុវត្តច្បាប់ដ៏អស្ចារ្យរបស់យើង។
- Binance (@binance) ខែធ្នូ 12, 2022
In response to the outflows, Binance CEO ឆាងផេង“ ស៊ីហ្ស” ហ្សូ មាន បានអះអាង that the event may be good for the exchange, as it will serve as a “stress test” that will prove Binance is solvent:
យើងបានឃើញការដកប្រាក់មួយចំនួននៅថ្ងៃនេះ (សុទ្ធ $1.14b ish)។ យើងបានឃើញរឿងនេះពីមុនមក។ ថ្ងៃខ្លះយើងមានការដកប្រាក់សុទ្ធ; ថ្ងៃខ្លះយើងមានប្រាក់បញ្ញើសុទ្ធ។ អាជីវកម្មដូចធម្មតាសម្រាប់យើង។
I actually think it is a good idea to “stress test withdrawals” on each CEX on a rotating basis.
- CZ Binance (@cz_binance) ខែធ្នូ 13, 2022
Despite this positive attitude, Binance’s own educational resources state that low liquidity can នាំ to widening bid-ask spreads and greater slippage, both of which can be negative for customers.
Source: https://cointelegraph.com/news/binance-net-withdrawals-topped-3-6b-over-the-last-7-days-report