Binance-DOJ Settlement Boost Investor Confidence
Blockchain analytics firm Nansen has revealed that despite legal developments involving Binance and its CEO Changpeng Zhao, there hasn’t been a mass exodus of funds from the exchange.
In the 24 hours following the DOJ’s announcement of a $4.3 billion settlement with Binance, the exchange saw a net outflow of $956 million in Ethereum.
However, Binance’s total holdings increased from $64.6 billion to $65.2 billion, accounting for both outflows and fluctuations in crypto prices. USDT holdings decreased by $246 million, while Bitcoin holdings saw a $76 million decline.
However, holdings in ETH, BNB, AETH, SOL, LINK, SHIB, and MATIC experienced increases. This nuanced shift in holdings indicates a diverse reaction from Binance users, suggesting a strategic realignment rather than a panic-driven withdrawal.
Nansen points out that Binance has previously navigated larger volumes of outflow and negative net flow, such as the SEC suing Binance in June 2023, rumors of insolvency in December 2022, and the immediate aftermath of the FTX incident.
(With inputs from Shikha Singh)
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