On-chain analysts found that Coinbase’s reserves increased by approximately 12,000 BTC during the same period that Binance’s reserves decreased by 5,000 BTC.
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Posted on November 24, 2023 at 3:32am EST.
Days after the U.S. Department of Justice (DOJ) announced a $4.3 billion fine in a settlement with crypto exchange Binance, the jury is still out on whether it caused major disruption to the company. do not have.
Within 12 hours of this news, on-chain analytics firm Nansen said there were no real signs of a “mass outflow of funds” in the posts about X.
Here is the latest update @Binance12 hours since last post
At the time of writing, withdrawals are continuing and no large-scale outflow of funds has been observed.
In the past hour on Ethereum, Binance has had $17 million in negative net flows (more leaving the exchange than sitting in) pic.twitter.com/yQPtMl5ue8
— Nansen🧭 (@nansen_ai) November 22, 2023
“Binance has dealt with higher volumes of outflows and negative net flows in the past: in June 2023 after the SEC sued Binance, in December 2022 after rumors of bankruptcy, and right after FTX.” Nansen said in the post.
After another 12 hours, things seemed to have changed dramatically. There has been an outflow of $2.2 billion worth of money from Binance, according to data from 21.co, suggesting that at least some retail investors were spooked and moved their coins off the exchange.
However, the company still held over $58 billion in total assets, $10 billion of which was in stablecoins.
If you are interested in the market impact on Binance.
Here are some real-time analytics provided by our team. @21co__ upon @DuneAnalytics– Binance outflows in the last 24 hours: $2.2 billion
– Total assets: $58.1 billion
– $10.8 billion in stablecoins
– #bitcoin Their biggest… pic.twitter.com/osUyr8J6RA— ΞLiezel Ndinga (@elindinga) November 21, 2023
Now, CryptoQuant data appears to indicate that some of these funds are leaving Binance and flowing into rival crypto exchange Coinbase.
Analyst identified With the flow of funds between the two exchanges, Coinbase’s reserves increased by approximately 12,000 BTC during the same period that Binance’s reserves decreased by 5,000 BTC.
“The market remains nervous about the recent legal implications for Binance. In the short term, more users will seek reassurance and move their funds to compliant or licensed exchanges. .” Said Greta Yuan, head of research at Hong Kong-based digital asset platform VDX, told CoinDesk today.
