Global cryptocurrency exchange Binance experiences a massive surge in daily withdrawals on the platform reaching almost $8 billion on December 13th. Mass FUD started spreading following the sudden withdrawals.
Binance CEO CZ tweeted “We saw some withdrawals today (net $1.14b ish). We have seen this before. Some days we have net withdrawals; some days we have net deposits. Business as usual for us.”
Binance even temporarily halted withdrawals of the major USDC stablecoin, citing a token swap. CZ later tweeted that this FUD brought a “stress test”, which in turn helps to build credibility for exchanges that pass the test.
CZ added “If you want to hold your own coins, feel free to use @TrustWallet. Please keep your private keys safe. Otherwise, we are here @binance.”
According to a report last week from Mazars, Binance’s bitcoin holdings were overcollateralized. Withdrawals increased as a result of several alarming stories about Binance and as investors grew more wary of putting their money on a centralized exchange.
Also Read: CZ says Binance gets 90% of its Revenue from Transaction Fees
