TL;DR
- In October, Binance experienced net outflows exceeding $500 million, one of the biggest numbers in the industry.
- This trend comes after September saw over $840 million in net outflows. The decrease in September was partially attributed to Binance discontinuing a zero-fee trading promotion.
Binance Users Pull Out $500 Million in October
Despite a recent surge in cryptocurrency prices and favorable news regarding ETFs, users have withdrawn hundreds of millions from Binance this month.
Regulatory concerns are causing investors to become apprehensive, which is contributing to these outflows.
DefiLlama data reveals that Binance has experienced approximately $525 million in net outflows this month.
Cryptocurrency prices rise from seasonal factors and a US Bitcoin ETF push.
Compared to previous months, this $500 million outflow represents a decline. Binance witnessed withdrawals exceeding $840 million in September and nearly $4 billion in June.
The decrease in September can be partly attributed to Binance discontinuing a zero-fee trading promotion.
Regulatory Concerns in the US and Worldwide
Amid regulatory concerns, US authorities have been closely monitoring the cryptocurrency landscape, especially since the collapse of FTX. Legal action has largely focused on Binance, the world’s largest cryptocurrency exchange.
In a lawsuit filed in June, the SEC accused Binance of demonstrating a blatant disregard for federal securities laws.
The SEC asserted that the exchange had unlawfully encouraged US investors to engage in buying, selling, and trading crypto asset securities.
Additionally, the regulator alleged that Binance had provided false information to investors, mishandled funds, and manipulated markets.
In response, Binance has vehemently contested these charges, deeming them unjustified.
The exchange respectfully disagrees with the SEC’s allegations that it operated as an unregistered securities exchange or engaged in the illegal offering and sale of securities.
Binance Bleeds Executives
Stéphanie Cabossioras has resigned from her position as the executive director of Binance France, making her at least the 10th senior executive to depart from Binance this year.
In a post on X on October 19, David Prinçay confirmed Cabossioras’ departure. He expressed appreciation for her contributions to the exchange.
Cabossioras’ departure adds her name to the ten senior executives who have left Binance this year.
On July 6, three Binance executives announced their departures: Patrick Hilman, Han Ng, and Steve Milton, as we previously covered.
Binance’s CEO addressed these departures on July 7, characterizing them as a natural part of his company’s evolution while dismissing reports about them as FUD.
Nevertheless, Binance users continue withdrawing funds from the platform despite the CZ’s attempts to calm the waters. On the other hand, rival exchange OKX has witnessed net inflows of $560M this month alone.
This shows that despite the positive situation due to the big change of a spot Bitcoin ETF acceptance, Binance has problems.
Starting with the legal problems and ending with the departure of its upper management, the biggest crypto exchange in the world is getting weaker.
Do you think the company will be able to maintain its supremacy as the biggest crypto company in the world?
Michael Healy
Michael, an entrepreneur, and co-founder of Unit, is a full-stack, mobile, and blockchain developer with extensive experience in the crypto and blockchain industry since 2010. A leading token builder, Unit powers the token economy using the Polkadot-powered Unit Network blockchain. Michael has built a diverse portfolio with multiple successful exits, including encrypted P2P video conferencing, a large UK student social network, and the Wikileaks Android app. He has experience working with top organizations like Wellington Partners, Founders Forum, Google, KPMG,...
