Binance, the world's largest crypto exchange is seeing massive withdrawals amid a broad market recovery. Based on data released by Nansen, Around $3 billion was withdrawn by investors from the exchange in the last 24 hours. However, Binance CEO CZ has issued a memo among office staff amid this uncertainty.
Reports suggest that Binance CZ issued a warning to its staff that the exchange may face tough challenges in the coming months. Meanwhile, he added that the firm will overcome the current challenges. It was reported as an attempt by CZ to calm the situation by informing his colleagues about the financial health of the company.
Based on the memo, Binance CZ stated that the crypto industry is going through a historic moment. However, he stressed that Binance is financially strong and will make it through any 'cooling off' season for the crypto market.
He added that the next few months could be turbulent but he was confident Binance would pull through. However, Binance CZ mentioned that the recent catastrophic collapse of FTX was the main reason behind this situation. Although this has also brought a lot of additional scrutiny and difficult questions about crypto exchange exchanges.
The collapse of FTX has caused a massive fall in the crypto market. The cumulative market cap has dropped below the $1 trillion milestone.
Since the arrest of former FTX CEO SBF, Binance has seen net outflows of around $3 billion in a day. This shows a sense of nervousness among users.
