Binance Withdrawals Surge as Paxos-BUSD Drama Weighs on the Exchange

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Binance Withdrawals Surge as Paxos-BUSD Drama Weighs on the Exchange
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Binance has endured some $828 million of net outflow in the past 24 hours. Monday’s outflow is the largest in a day since November, surpassing withdrawals in December that occurred amid fears about Binance reserves. sndr_krisztian reports

Given the large chunk of Binance-related assets on the platform, the withdrawals tested Binance and its reserve assets, Walter Teng, vice president of digital asset research of market analysis firm Fundstrat, wrote to CoinDesk in a Telegram chat.

“Assuming Binance doesn't hold customer deposits 1:1, they might face withdrawal pressure,” Teng said. “On-chain liquidity for BUSD has already dried up, making redemption of BUSD for U.S. dollars or an alternate stablecoin to then meet customer withdrawals as the only viable option.”that customer funds are safe.

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