Concerns about Binance: Is a “Bank Run” Possible?
Julio Moreno from CryptoQuant has analyzed data to address worries about a potential “bank run” happening at Binance, similar to what happened with FTX. He looked at two main things from historical data: Binance’s Bitcoin reserves and the percentage drop from their highest point since 2018.
Key Points:
- Binance’s Bitcoin reserves have stayed mostly in line with their usual patterns, suggesting no big problem with withdrawals.
- The reserves have not dropped by more than 16% from their highest point since 2018, which is an important metric to watch.
- Binance is facing multiple problems, including lawsuits, regulatory scrutiny, and allegations of scams and fraud.
- Comparing Binance to FTX, Binance’s reserves have shown resilience and consistency, unlike FTX’s.
- Allegations that Binance’s CEO is selling off Bitcoin holdings to support BNB and maintain its value have raised concerns.
The Ripple Effect: Binance’s Potential Impact
With the collapse of FTX and the multiple charges against Binance, the crypto community fears a ripple effect if Binance falls. Julio Moreno’s analysis adds fuel to the allegations, raising further concerns about the exchange’s credibility. The situation is tense, and the future of Binance remains uncertain. What are your thoughts on this?
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