The world's largest cryptocurrency exchange Binance is currently facing difficulties in retaining assets. Following the collapse of competitor FTX, many investors have been pulling their crypto out of the exchange in recent weeks.
Despite CEO Changpeng Zhao's statement that the situation has stabilized, outflows are still ongoing, with a net $360 million being withdrawn on Friday according to crypto data firm Defillama.
In fact, data from a separate crypto firm, Nansen, revealed that Binance had lost $3 billion worth of assets over the previous week, accounting for 4% of the firm's total at the time. An investigation by Forbes showed that the actual figure was 15% of the company's assets since a tweet by Zhao which downplayed the Nansen report withdrawals.
Furthermore, nearly a quarter of Binance assets have left the exchange in under two months. Trust in the exchange can be seen through the performances of Binance Coin (BNB) and Binance USD (BUSD) as they have both dropped in value.
BNB lost 29% of its value in the past two months, and Forbes estimates that leaves about 29 million of the tokens at Binance, 51% less than the number the exchange reported on November 10.
Furthermore, the number of BUSD stablecoins at the firm sank by 40%. The net assets dropped by 24% since November, and the investors in well-known tokens like matic, ape, and gala have reduced their assets at the exchange by 40-50%.
Although it still holds the title of the largest cryptocurrency exchange by volume, Binance has not been untouched by the overall decline in digital assets, especially the value of BNB token which decreased 37% in the past 12 months.