According to data from CEX Transparency by Defillama, Binance leads in terms of negative net inflow volume in the past 24 hours. (Note: Negative net inflow volume means that investors are withdrawing more than depositing). Despite this trend, Binance remains one of the top holders of assets in the market.
Specifically, the negative net inflow amounts to nearly $1.2 billion USD since the negative news about Binance and CZ surfaced. This figure appears to be increasing hourly. In the early morning hours, as observed by BeInCrypto, the net inflow was slightly over $700 million USD, but by the time of this writing, it had reached $1.19 billion USD.
Meanwhile, Binance’s net inflow over the past month has been positive, with more than $1 billion USD in inflows. This means that the amount withdrawn in the past 24 hours has equaled the amount the exchange received in an entire month.
It is likely that users will continue to withdraw funds from Binance. It remains unclear where the majority of these funds will flow to or which exchange they will choose. However, recently, the USDT/VND price on Binance’s P2P platform has dropped from 24,800 VND to 24,500 VND, suggesting that many Vietnamese investors have decided to convert their assets to fiat.
In general, other exchanges that have disclosed reserve data, such as Huobi, Gate.io, and Bitfinex, have all reported negative net inflows in the recent 7 days. However, the trend of capital withdrawal has shown signs of strengthening even as the total market capitalization of the crypto market remains above $1.3 trillion USD.
A recent report on Binance’s reserve data suggested that the exchange’s ability to pay the Department of Justice’s (DoJ) fine in the future is feasible. According to the DoJ’s announcement, Binance is required to pay a $4.3 billion USD fine, with $1.8 billion USD due within 15 months after the sentence and approximately $2.5 billion USD to be paid at other specified times after the sentence.
The reserve report, shared by @jconorgrogan and confirmed by Binance’s new CEO, @_RichardTeng, implies that Binance’s current financial strength is robust. According to this report, Binance’s total assets (after deducting customer holdings) are over $6.45 billion USD, including $3.19 billion USD worth of stablecoins. Therefore, Binance can fully pay the $4.3 billion USD DoJ fine without affecting user assets.
Richard Teng, the new CEO of Binance, also affirmed today that: “Our underlying platform in our business is VERY strong. Binance continues to operate the world’s largest cryptocurrency exchange by volume, our capital structure is debt-free, our costs are low, and despite the low fees we charge users, we still have high revenue and profitability.”
These actions may have somewhat reassured users. While a large amount of money has been withdrawn from Binance in the past 24 hours, it has not reached a level that would create a serious “bank run” situation.