The crypto community talks about bank run on Binance

In the past 24 hours, cryptocurrency exchange Binance saw $1.14 billion in outflows. This is due to the increase in FUD (fear, uncertainty and doubt) within the crypto ecosystem.

According to Binance CEO Changpeng “CZ” Zhao, the exchange has seen this happen before, and he thinks “it’s a good idea to have ‘stress test withdrawals’ on every CEX [zentralisierten Börse] to be carried out by rotation”.

The bank run on Binance came a month after the run on FTX, leading to liquidity issues and the eventual collapse of FTX. This run on FTX, in turn, was sparked by CZ.

Despite the rise of FUD in the crypto community, many are optimistic that Binance will weather the storm and not suffer the same fate as FTX. Others say a collapse of Binance would destroy the entire crypto industry.

Bitcoin (BTC) millionaire Carl Runefelt tweeted: “If Binance crashes we are all screwed.”

Author and bitcoin enthusiast Layah Heilpern explained, “Do you realize that if Binance goes down, everything else will crumble? Yes, #Bitcoin will survive, but the whole crypto ecosystem and stablecoins will die.”

Twitter user Crypto Cognac said a collapse of Binance would not be good for the industry as it would “take the industry back to the Stone Age”.

Timverse thinks Binance’s bankruptcy would “set the industry back years”. But crypto would survive because crypto “was here long before Binance existed and will be here after.”

Crypto analyst and government adviser Del Crxpto accused the crypto media of promoting the FUD surrounding Binance, saying, “The media is trying to cause a banking panic on Binance. Most recently it was said that Binance failed an exam. The fact is that time is the best examiner and Binance has passed the test of time.

On December 11, Cointelegraph reported that accounting and finance experts spotted red flags in Binance’s finances. Competitors called the crypto exchange’s proof of reserves “useless” because it did not include any liability.

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