Binance CEO Changpeng Zhao on Wednesday said that the situation has 'stabilized' at his cryptocurrency exchange in a bid to assuage investors' fears.
Blockchain analytics firm Nansen said on Tuesday that there have been more than $3 billion of net withdrawals from Binance over the last seven days. But the Nansen CEO Alex Svanevik said the situation is different to FTX, which saw withdrawals to the "tune of multi-billion dollars."
"I would say that you're definitely seeing larger than normal withdrawals from Binance. And so it is definitely worth keeping an eye on but as far as I can tell at this point in time, this is very different from the FTX situation," Svanevik told CNBC's "Capital Connection" on Wednesday. Svanevik noted that Binance has around $60 billion worth of assets on its exchange, of which the withdrawals represent a small proportion."While we expect the next several months to be bumpy, we will get past this challenging period – and we'll be stronger for having been through it," Zhao wrote in an internal memo, seen byInvestors have called for more transparency from Binance's business.
But critics have said that the proof of reserves has not gone far enough to give assurances of Binance's collateral. Mazars, the auditing firm Binance used for its proof of reserves, said in its five-page November report that the company does "not express an opinion or an assurance conclusion." A Binance spokesperson was not immediately available for comment, when contacted about the contents of this memo and the criticisms of the company's proof of reserves.
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