CryptoQuant’s Chief Executive stated that despite all the rumors around Binance, stablecoin reserves at the exchange look very different from FTX before its collapse.
Ki Young Ju responds to a Reuters report that Binance and Changpeng Zhao, its CEO, are being investigated by federal authorities for money laundering violations.
The news seemed to have a ripple effect on the exchange’s crypto reserves: Zhao admitted that the exchange had about $1.14 billion in net withdrawals on Tuesday. However, he said that Binance was still in “business as usual”.
“Things seem stabilized. Yesterday’s withdrawal was not the most significant, but it wasn’t even the best 5. We processed more during LUNA/FTX crashes. Now deposits are being returned.”
Ki Young Ju claims that Binance’s stablecoin reserves look fundamentally differently than FTX’s in November.
“The FTX reserves don’t appear organic with many outflows to non-FTX wallets. The reserves also dropped -93% a few weeks before the bank ran.”
Young Ju said Binance has Bitcoin and Ethereum reserves.
Source: Young Ju
“People keep asking me if Binance’s fine. Their BTC reserves fell -8% in the last two days, but were +24% higher during the FTX banking run last month. Although there may be some issues that need to be addressed for regulation, I don’t see any suspicious activities on-chain for the moment.”
Santiment, a crypto analytics firm notes that Binance rumors are dominating social media conversations.
“24% are talking about crypto platforms because of the FUD [fear uncertainty and doubt] rumors that swirl around Binance. AP ArchPublic reports that executives are allegedly bailing’ and there are money laundering concerns.”
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