The largest cryptocurrency exchange in the world, Binance, is experiencing significant withdrawals despite a general market recovery. According to information provided by Nansen, in the previous day, investors withdrew about $3 billion from the exchange. In the midst of this uncertainty, Binance Chief, CZ has distributed a memo to the office workers.
Binance as a Crypto Winter Survivor?
According to reports, the Binance CZ warned his team that the exchange would face challenging months in the future. Meanwhile, he continued, the businesses will overcome the difficulties they are currently facing. It is said to have been the CZ's collected effort to brief his colleagues on the state of the company's finances.
According to the document, Binance CZ claimed that this is a historic time for the cryptocurrency industry. However, he argued that Binance has a solid financial foundation and will survive any crypto winter.
The following several months may be challenging, but Binance will overcome them, he continued. However, Binance CZ noted that FTX's recent, appalling drop is the primary cause of these circumstances. However, this has also increased attention and raised some difficult concerns about the cryptocurrency trade. CZ concluded in the end:
“Rest assured, this organization was built to last.”
Is SBF's Arrest the Primary Cause?
The crypto market has completely collapsed as a result of the FTX crash. The whole market value has fallen below the critical $1 trillion threshold.
Since the former CEO of FTX was detained, SBF Binance has seen a net outflow of about $3 billion per day. This demonstrates how users are becoming more uneasy.