The largest cryptocurrency exchange's CEO, Changpeng Zhao, mocked US critics on Twitter while two important US banks went bankrupt and were unable to process customer withdrawals.
Zhao tweeted, "They FUD us, and banks fail," alluding to the fact that Binance survived despite relentless negative messaging from US organizations who wanted the exchange to fail. The failure, though, was on the part of US-based companies.
Silicon Valley Bank, which had total assets of $209 billion, and Silvergate, a bank that specialized in cryptocurrencies, are the two American banks that recently failed. Binance struggled with persistently unfavorable stories after the FTX cryptocurrency exchange went under in November, stories that suggested that the most well-known crypto asset manager would also be experiencing a liquidity problem.
Crypto fans hurried to withdraw their funds from Binance out of fear, uncertainty, and skepticism. Contrary to the intense FUD at the time, Binance made it through what some have called one of the most thorough stress testing a financial institution has ever experienced. On-chain data shows that the exchange cleared more than $14 billion in withdrawals in a matter of weeks.
Data surprisingly reveals that Binance's reserves have kept growing. A recent survey claims that for the past four months, Binance has maintained an advantage over its rivals in terms of the crypto spot market share.
Despite regulatory snags and public unease, Binance's spot volumes surged by 13.7% to an all-time high of $504 billion, outpacing other top-tier crypto exchanges like Coinbase and Kraken by a significant margin.