Image courtesy of Justin Sun’s Twitter.
- TRON founder Justin Sun deposits $100 million on Binance despite FUD around the exchange
- The deposit comes at a time when Binance saw a net outflow of $1.9 billion in 24 hours
Amid clamors that Binance’s recently published proof-of-reserve is concerning, key players continue to show confidence in the exchange.
Justin Sun, the founder of TRON, revealed in a tweet that he has deposited $100 million on Binance, a move that could be aimed at calming fears about the financial health of the largest exchange by trading volume.
Sun also shared the wallet address of the transaction for the community to confirm on-chain.
In response, Binance’s CEO Changpeng Zhao stated that the deposit is part of cross-chain swap processes to deploy BUSD on the TRON blockchain.
CZ also notes that he does not know the details of the arrangement as he is not handling it himself, and Sun, in agreement retweeted.
The interaction between the two crypto billionaires is coming after Binance has been seeing a surge in outflows.
Per data from blockchain intelligence platform Nansen, Binance recorded $1.6 billion worth of withdrawals in the last 24 hours.
This brings the exchange’s weekly Netflix to -$1.9 billion. However, the figure is still less than the -$2.3 billion netflow Binance processed in the wake of the FTX collapse, Nansen noted.
There’s a spike in withdrawals from Binance in the last 24H with -$1.6B* netflow
Its 7-day netflow is now at -$1.9B, currently this is less than the -$2.3B weekly netflow Binance has processed in the wake of FTX collapse
*ETH & ERC20 tokens only pic.twitter.com/pwbeQXtDxK
— Nansen 🧭 (@nansen_ai) December 13, 2022
Amid the massive withdrawals, Binance has gone on to carry out a routine pause of withdrawals for some tokens for maintenance. In particular, it suspended USDC withdrawals to enable it to complete a token between PAX/BUSD.
Is Binance in real danger or is the FUD a coordinated attack?
The price of Binance’s BNB Chain’s native token, eponymously named BNB, has also taken a dive on the back of the fear, uncertainty, and doubt (FUD) permeating the market. BNB has fallen 5.34% in the last 24 hours, trading at $268.58.
Much of the market’s concern for Binance arose from reports on the Binance proof-of-reserve audit released by global financial audit and tax advisory firm Mazars.
The audit showed that Binance’s BTC holdings, excluding loans made out to Binance’s margin trade users, were 97% collateralized.
A financial expert pointed out the discrepancy as a red flag to the Wall Street Journal. According to the expert, the audit report is also not very forthcoming on details of Binance’s internal controls, risk management, and corporate structure.
Meanwhile, Binance has continued to reassure users of its financial health. In a recent tweet, CZ admonished the market to “ignore the FUD” and “keep building!”
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