Is Binance Doing OK?!

According to reports, Binance has lost nearly 25% of its assets in less than 60 days as CEO Changpeng “CZ” Zhao manages the exchange alone without a chief financial officer (CFO).

Over $12 billion in assets have been removed from Binance in the last two months, according to a recent Forbes analysis, with the Paxos stablecoin BUSD and Binance's own BNB coin leading the way.

Forbes reports that the value of Binance's BNB coin has decreased by about 30% over the last two months and that there are now only 29 billion of the coin left on the exchange, which is 51% less than what the exchange reported on November 10, 2022.

In contrast to the lower percentage Binance reported in November 2022, data retrieved from Binance-owned CoinMarketCap on January 9, 2022, shows that 31% of Binance's asset holdings are made up of BNB.

Outflows of BNB were not the only thing that hit Binance; on November 25 and December 14, 2022, a number of whales switched their BUSD holdings for USDC and Tether. According to Forbes, on December 14, 2022, the BUSD held decreased by $3.5 billion, reducing the exchange's asset holdings by 15%. Stocks of USDT and USDC increased.

Around December 12–13 last year, Wintermute, market maker Jump Crypto, and Justin Sun of Huobi Global withdrew sizable sums of BUSD. Sun had previously made a $100 million asset deposit on the platform.

CZ stated in a tweet that Sun's $200 million deposit increased Binance's activity on the Tron blockchain. Later, he removed the tweet.

Binance is also suspected of having allegedly sent $232 million in BUSD to Binance.US to boost its financial clout in the eyes of the U.S. Securities Exchange Commission (SEC). The SEC recently halted Binance.US's takeover plans as it believes there is insufficient transparency about its financial condition.

Customers have decreased their MATIC, APE, and GALA crypto assets by 40–50% since November 2022, further compounding Binance's problems.

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