Binance outflows surpass $1.0 billion ‘countdown to insolvency has begun’

Binance remains in focus today after data from Nansen confirmed that its users have already pulled more than $1.0 billion from the crypto exchange in the past 24 hours.

Binance hit with a $4.3 billion fine

Note that the said data doesn’t even include Bitcoin related outflows.

The news follows Changpeng Zhao pleading guilty to charges of money laundering and stepping down as the Chief Executive of Binance that itself agreed to pay a record-breaking $4.3 billion in fines to settle with the DOJ.

BNB – the native token that Binance holds about $2.8 billion worth of is also down over 8.0% on Wednesday.

The world’s largest crypto exchange has already named Richard Teng its new lead as Invezz reported here. Teng was most recently the global head of regional markets at Binance.

Is Binance headed for a collapse?

Binance still has assets worth over $65 billion on its platform, as per the blockchain analysis firm which suggests it has the capital to hold out against the outflows.

Still, Nathan Anderson of Hindenburg Research – an investment firm that focuses on activist short-selling says Binance is heading towards an eventual collapse.

On the flip side, though, Grzegorz Drozdz of Conotoxia Ltd sees it as potentially a net positive as Binance is now past the regulatory dispute and has committed to enhanced security.