• Advertise
  • Submit a Press Release
NewsBTC
Bitcoin & cryptocurrency news
Crypto.com Logo
  • News
    • Bitcoin
    • Ethereum
    • Cardano
    • Dogecoin
    • Ripple
    • DeFi
    • NFT
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • Events
  • Play GamesTry
  • Play Casino GamesTry
  • Free SpinsTry
  • Play FinanceTry
No Result
View All Result
Breaking News: Binance Sees $218 Million In Outflows Following CFTC Lawsuit
  • News
    • Bitcoin
    • Ethereum
    • Cardano
    • Dogecoin
    • Ripple
    • DeFi
    • NFT
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • Events
  • Play GamesTry
  • Play Casino GamesTry
  • Free SpinsTry
  • Play FinanceTry
No Result
View All Result
NewsBTC
No Result
View All Result
Breaking News: Binance Sees $218 Million In Outflows Following CFTC Lawsuit
Binance CEO Changpeng Zhao and FTX

Binance Controversy Continues As Experts Warn Of Serious Fallouts Due To FUD

Jake Simmons by Jake Simmons
3 months ago
in Crypto
Reading Time: 3 mins read
Advertisement
Advertisement

Binance rumors were the all-dominant topic last week after the FOMC meeting. Rumors of insufficient proof of reserves and the pullback from accounting firm Mazars, allegations of a bank run and insolvency, as well as CZ’s interview on CNBC have dragged the Bitcoin and crypto sentiment and prices down.

Charles Edwards of Capriole Investments pointed out in a Twitter thread that this “FUD is really bad for the industry,” pointing out that there is “nothing” backed by data that is legitimately worrisome, “but when fear is great enough, it doesn’t matter.”

“If current withdrawal rates continue, expect more exchanges to go down – not from poor practices – but bankruptcy,” Edwards contended.

Don't wait! Jump on this Crypto Deal and get a 150% Welcome Bonus plus 100 Free Spins on your deposit today!
570% up to 12 BTC + 300 Free Spins for new players & 1 BTC in bonuses every day, only at Wild.io. Play Now!

Is The Binance FUD “Thinly Veiled Xenophobia”?

The analyst suggests that all exchanges are being hit extremely hard by current market conditions. They have to deal with a price drop of more than 80%, a drop in trading volumes of more than 90% and a reduction of reserves by more than 50% “due to irrational panic.”

As Edwards analyzes, even the U.S. exchanges Coinbase, Gemini and Kraken have been hit badly. They are currently experiencing a 60% drop in their Bitcoin reserves over the past year.

Bitcoin US exchange reserves
Bitcoin US exchange reserves. Source: Twitter

Addressing Bitcoin maxis, in particular, Edwards said:

BitStarz Player Lands $2,459,124 Record Win! Could you be next big winner?

I love Bitcoin. But the maxis screaming for cold storage only, don’t realize that if everyone actually went to cold storage, your precious Bitcoin price would approach $0. Influencers spreading FUD are literally damaging the industry & their net worth just to pump engagement.

At the same time, Edwards emphasized that his opinion on Bitcoin has not changed. He said the current price movement is largely fueled by panic. Still, Edwards spoke from the heart of many crypto enthusiasts when he turned to Changpeng Zhao and said:

And CZ, let’s stop dilly dallying and put this issue to bed with a _real_ audit.

Edwards was joined by market analyst Alex Kruger, who denounced the people who view bank runs as healthy stress tests. Those people “clearly haven’t thought this through. When funds leave, trading activity diminishes, and so do trading fees. And then, many funds never come back.”

Related Reading: Bitcoin Plummets Below $17,000 After Audit Firm Mazars Pauses Work For Binance

Ryan Selkis, the founder of Messari, claimed much of the Binance FUD is “thinly veiled xenophobia.” Selkis also added: “I’m all for the stress test on deposits and think it’s bad that such a high percentage of volumes runs through a single exchange. I also don’t love the tone of some of the critiques. Sorry!”

Notably, on-chain analytics firm CryptoQuant recently conducted an analysis of Binance’s reserves. The company’s data shows that the amount of BTC Binance said it held as liabilities at the time the PoR report was conducted is consistent with CryptoQuant’s reserve data.

Conclusion:

Our analysis should not be interpreted as a favorable opinion of Binance as a company or the BSC/BNB networks.

Our data merely shows that the amount of BTC Binance says it holds as liabilities at the moment the PoR report was conducted matches our reserve data.

— CryptoQuant.com (@cryptoquant_com) December 15, 2022

Why Doesn’t Binance Take A Big Four Auditor?

In Friday’s much-discussed interview on CNBC, Binance CEO Changpeng Zhao said that “Big Four” auditing firms are currently unable to conduct an audit for a cryptocurrency exchange. The hosts then countered that Coinbase is working with Deloitte.

Related Reading: Bitcoin Price Prints Bearish Technical Pattern, Why It Could Continue Lower

Blockworks was told today by a Binance spokesperson that the “Big Four” audit firms – famously Deloitte, Ernst & Young, KPMG and PricewaterhouseCoopers – are “not currently prepared” to conduct a proof-of-reserves audit for a private crypto company.

As reported by the news outlet, the spokesperson went on to say that Binance is going ahead with the Merkle tree proof of reserves to show that its assets exist on the blockchain. However, the exchange is still looking for a partner to verify the proof of reserves:

We have reached out to multiple large firms […] and we are still looking for a firm who will do so.

At press time, the Bitcoin price was at $16,734.

Bitcoin BTC USD 2022-12-19
Bitcoin price, 1-hour chart. Source: TradingView
Tags: BinancebitcoinbtcFUD
Tweet123Share196ShareSend
Win up to $1,000,000 in One Spin at CryptoSlots
Jake Simmons

Jake Simmons

Related Posts

Binance vs CFTC

CFTC Vs. Binance: Cumberland Outlines 3 Scenarios For Bitcoin And Crypto

2 days ago
LUNC burn

New Proposal Wants To Burn All Coins In LUNC Oracle Pool, Will This Help The Price?

7 days ago
Arbitrum ARB airdrop

Arbitrum (ARB) Airdrop Is Around The Corner, How To Trade It

7 days ago
Bitcoin

Can Crypto Rally Keep Up? This Indicator May Suggest So

1 week ago
total crypto parabolic sar

Why The Crypto Market Could Soon Go “Parabolic”

1 week ago
Tokenizing Stocks, Bonds And Others Could Boost Capital Markets Efficiency: BlackRock CEO

Tokenizing Stocks, Bonds And Others Could Boost Capital Markets’ Efficiency: BlackRock CEO

2 weeks ago

Premium Partners

Play Finance

Trending Projects

  • 4 Best Upcoming ICO For 2023

    1 week ago
  • Crypto Investment for Long Term Growth in 2023

    1 week ago
  • 5 Cryptocurrency To Invest In 2023

    1 week ago

Top Casinos

BitStarz

BitStarz

Review · Visit
Punt Casino

Punt Casino

Review · Visit
Trust Dice

Trust Dice

Review · Visit
CryptoSlots

CryptoSlots

Review · Visit
mBit

mBit

Review · Visit

Sportsbooks

1xBit

1xBit

Review · Visit
  • The Future Of The Crypto Industry And One Of Its...

    19 hours ago
  • Don’t Miss TMS Network (TMSN) 100x Growth Train; Algorand...

    22 hours ago
  • Riding The 2023 Bull: How Bitcoin, Ethereum, And SignUp...

    23 hours ago
  • Three Unique Top Presales To Buy in 2023: RobotEra...

    23 hours ago
  • Meta Masters Guild On Track to Become Web3’s Largest...

    1 day ago

About Us

NewsBTC is a cryptocurrency news service that covers bitcoin news today, technical analysis & forecasts for bitcoin price and other altcoins. Here at NewsBTC, we are dedicated to enlightening everyone about bitcoin and other cryptocurrencies.

We cover BTC news related to bitcoin exchanges, bitcoin mining and price forecasts for various cryptocurrencies.

Links

Crypto Prices from Nomics

Cryptocurrency news

  • Bitcoin
  • Ethereum
  • Ripple
  • Chainlink
  • Cardano
  • EOS
  • Tezos

Technical Analysis

  • Bitcoin (BTC)
  • Ethereum (ETH)
  • Ripple (XRP)
  • Chainlink (LINK)
  • Cardano (ADA)
  • Tezos (XTZ)

Company

  • Advertising
  • Comments Policy
  • Privacy Center
  • Sitemap
  • About Us
  • Contact

© 2022 NewsBTC. All Rights Reserved.

  • News
    • Bitcoin
    • Ethereum
    • Cardano
    • Dogecoin
    • Ripple
    • DeFi
    • NFT
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • Events
  • Play Games
  • Play Casino Games
  • Free Spins
  • Play Finance

© 2022 NewsBTC. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.