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<p>Binance faces an important stress test a month after releasing its Proof of Reserves.</p><h2 id="header-0">Binance Faces Billions in Withdrawals</h2><p>Binance is facing FUD which has caused a run of withdrawals from the exchange.</p><p>According to data from Nansen, Binance saw more than $4 billion in <a href="https://cointelegraph.com/news/binance-net-withdrawals-topped-3-6b-over-the-last-7-days-report" rel="noopener noreferrer nofollow">net withdrawals</a> from  December 7 - 13. The total value of the on-chain wallets of Binance  fell from $65 billion to $60 billion between Dec. 13-14.</p><p>Amidst all this FUD, Anastasia Kor, the CMO and board member of the crypto firm Choise.com, responded to the question: What could be the future for Binance and other exchanges?</p><blockquote>“Binance  exchange is currently under pressure as liquidity keeps exiting the  trading platform on account of large volume traders kept making  withdrawals. With net withdrawals coming in at $3.6 billion from Dec 7  to 13, Binance is poised to show the strength of its reserves as it  published earlier in November. For companies facing a related liquidity  crunch, the best thing to do is to maintain a good PR such that the  panic in the community can be reduced to the barest minimum.</blockquote><p>The  nearly $4 billion is the largest outflow since the exchange publicly  shared its addresses just over a month ago on November 11. The drama  surrounding Binance has been a good test for the exchange.</p><p>Anastasia Kor continued:</p><blockquote>As  far as Binance is concerned, the exchange has deep reserves that can  help it survive these withdrawal strains. Based on the current distrust  for exchanges in the industry today, more trading platforms may still  experience massive liquidity loss that may likely be about their demise.  At every negative sentiment hurled at the exchange, investors will be  triggered to withdraw their funds and this can be detrimental as no  investor wants their funds to be trapped on a bankrupt exchange.</blockquote><p>The  stress test reached its peak when Binance paused USDC withdrawals on  Tuesday, December 13––to much public outcry. Binance had to remind the  public that transfers go through a New York bank that has daytime  operating hours. The exchange resumed USDC withdrawals later in the day.</p><p>Binance CEO Changpeng Zhao (CZ) took to Twitter to calm the public, where he gave comments that  explained this as business as usual for a centralized exchange.</p><p>As the FUD around Binance and crypto continues, the mettle of the industry will be tested. Kor ended:</p><blockquote>“As  to whether other exchanges will experience a liquidity crunch in the  future, I might say it’s highly probable as FUD and negativity in the  community drive this trend. This winter season is a real strength test  for the market.”</blockquote><h2 id="header-1">What is Binance:</h2><p>Binance  positions itself as the world’s leading blockchain ecosystem and  crypto-asset infrastructure provider with a financial product suite that  includes the largest digital asset exchange by volume. The Binance  platform aims to increase the freedom of money for users and features a  comprehensive portfolio of crypto-asset products and offerings,  including trading and finance, education, data and research, social  good, investment and incubation, decentralization, and infrastructure  solutions.</p><h4>Read full article: <strong><a href="" rel="noopener noreferrer nofollow">https://www.bsc.news/post/5b-in-withdrawals-at-binance-what-now</a></strong></h4>

Anastasia Kor, the CMO and board member of Choise.com for BSC.NEWS: $4B in Withdrawals at Binance - What Now?

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