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18 Nov 2022

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Despite a Slight Increase in Withdrawals, Binance's CEO Says “It’s Business as Usual”

According to Binance's CEO, the crypto exchange has seen only a small increase in withdrawals, and the crypto giant is running as it always does. Prices for digital assets haven't taken a toll after FTX collapsed.

At a life ask me anything session on Twitter Monday, Zhao said there were no major withdrawals from cold cryptocurrency wallets the company published data on in the wake of FTX's bankruptcy.

Even though we see an uptick in withdrawals, it's consistent with typical behavior when the market declines. Said, Zhao

"Whenever prices drop, we see an uptick in withdrawals," Zhao added. "That's quite normal." Although it seemed to stabilize, volatility returned to bitcoin in recent weeks. News of a liquidity crisis at FTX shook the market and drove the price down to around $16,600 Monday, and it has barely moved since.

Zhao said that we've seen 80% withdrawal or half of our funds flow out of the platform, which may happen with other platforms. But for us, it's still business as usual.

The FTX Corporation entered bankruptcy on Friday due to liquidity issues resulting from insufficient funds and apprehensive investors who preferred to pull out their offers before negotiations began.

A series of communications to shareholders revealed that Binance pulled out of their proposed acquisition deal as they discovered concerns over the company's finances and liquidity in due diligence.

Also Read: The CEO of Binance Says the Company Is 'Narrowing Down' the Hacker's Identity Responsible for a $570 Million Crypto Attack.

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