After the U.S. Securities and Exchange Commission (SEC) sued cryptocurrency exchange Binance and its founder Changpeng “CZ” Zhao for alleged violations of federal securities laws, the cryptocurrency markets remained volatile on Tuesday.
$700 Million Withdrawn Due to Binance Lawsuit
In a 24-hour period, outflows from Binance totaled $719 million across all protocols, according to data from Nansen.ai.
Following the SEC’s announcement of its lawsuit against Binance during U.S. trading hours, net outflows reached $230 million.
Binance’s Stablecoin Balance
Nansen data also reveals that Binance’s stablecoin balance is in good shape, despite the seemingly startling net outflow, which is continuing at a rapid clip. With a seven-day outflow of $519 million (almost 6% of holdings), the exchange’s stablecoin balance is at a little over $8 billion.
On the other hand, the withdrawals are well within historical standards, noted Seoul-based cryptocurrency research company CryptoQuant in a Twitter thread.
Stablecoins Listed on Binance Plummeted
The SEC further claimed that several additional tokens, including Binance’s BNB token, the Solana (SOL), Cardano (ADA), Polygon (MATIC), Coti (COTI), and Algorand blockchains (ALGO), the Filecoin network (FIL), the Cosmos hub (ATOM), the Sandbox platform (SAND), the Axie infinity (AXS), and Decentraland (MANA) are securities in the complaint. Throughout the trading day in Asia, the majority of these tokens remained deep in the red.
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