Binance is under fire-12Billion Gone in Less than 60days
It’s possible that people may be losing trust in cryptocurrency as a result of an event like the crash of a major exchange like FTX. A crash like this could lead to significant financial losses for those who had assets on the exchange, which in turn could lead to a loss of confidence in the overall cryptocurrency market.
Additionally, a crash like this may also raise concerns about the security and stability of cryptocurrency exchanges, which could also contribute to a loss of trust in the market. However, It’s important to note that the market of cryptocurrency is known for its volatility and changes, so this may be an isolated case and does not necessarily mean the end of trust on the whole market.
Investors’ lack of trust is best seen in the performances of Binance Coin (BNB) and Binance USD (BUSD), the two tokens bearing the exchange’s name. BNB lost 29% of its value in the past two months, and Forbes estimates that leaves about 29 million of the tokens at Binance, 51% less than disclosed by the exchange on November 10. Meanwhile the number of BUSD stablecoins at the firm sank by 40%.
The bottom line is that a growing number of Binance investors are leaving the exchange or sharply reducing their exposure to it. This sharp drop is taking place at a steady pace without much media attention or market reaction. What makes this story significant is that by its own inertia Binance is getting close to a precipice where this soft run on the bank could intensify.
Find more information about interesting cryptocurrency topics at EPLO: