Ethereum

The recent legal actions taken by the Securities Exchange Commission (SEC) have significantly impacted the wealth of Brian Armstrong, the CEO of Coinbase, and Changpeng Zhao (CZ), the CEO of Binance, resulting in substantial financial losses.



Within a period of 30 hours following lawsuits filed by the SEC against Binance on June 5 and Coinbase on June 6, Armstrong witnessed a reduction of $289 million in his net worth. 



Similarly, Zhao experienced a staggering decline of $1.33 billion.



As a consequence of these legal proceedings, Zhao, who holds the position of the wealthiest individual in the cryptocurrency industry and ranks as the 54th wealthiest person globally, encountered a 5.1% decrease in his net worth, which now stands at $26 billion this week.



Despite a substantial increase of over 106% in the net worth of the Binance CEO throughout this year, he still remains considerably lower, down by more than 73%, compared to his peak net worth of $96.9 billion in January 2022. 



On the other hand, Brian Armstrong, ranked as the 1,409th richest person according to Forbes, suffered a more significant blow from the recent actions, resulting in an 11.8% decrease in his net worth, which now amounts to $2.2 billion. However, Armstrong has benefited from the market&#8217;s recovery this year, witnessing a notable 61% rise in his net worth during this period.



Although both Zhao and Armstrong experienced recent declines, their net worth has still seen substantial growth, surpassing the 9% year-to-date returns of other individuals on Bloomberg&#8217;s list of the wealthiest.



It is crucial to highlight the distinction between the cases involving Binance and Coinbase to provide clarity. Coinbase is solely facing accusations of selling unregistered securities, while Binance&#8217;s situation appears to be more complex. Furthermore, it is essential to note that Binance US should be regarded as a separate entity from Binance. By acknowledging these differences, a more accurate understanding of the respective challenges faced by Binance and Coinbase can be gained.



<h2 class="wp-block-heading" id="h-netflow-of-funds-from-binance-and-coinbase">Netflow of funds from Binance and Coinbase</h2>



Regarding the the outflow of funds from both Binance and Coinbase, it is safe to say that it has significantly reduced in a positive manner, compared to the situation observed 24 hours after Binance faced legal action from the SEC.



Over the course of the past 24 hours, the net outflows from Binance and Coinbase have decreased to $491.9 million and $105.3 million, respectively.



It is worth noting that the netflow refers to the combined value of deposits and withdrawals made on an exchange. When the netflow of an exchange is negative, it signifies that the amount of assets being withdrawn exceeds the amount being deposited. 



Conversely, a positive netflow indicates that more assets are being deposited into the exchange compared to the amount being withdrawn.



Yes, the netflow of Binance is negative, but this is not an unprecedented occurrence, as there have been previous instances of significant withdrawals, and it is probable that such situations will arise again in the future. For instance, in December of last year, Binance experienced net outflows exceeding $2 billion due to market apprehensions regarding solvency.


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Despite a significant negative netflow, Binance maintains a substantial amount of funds, with over $54 billion held in their identified wallets and an additional $17 billion stored on the Ethereum blockchain. 



Withdrawals from Ethereum account for less than 10% of the total funds held in known wallets, although this percentage decreases further when considering other blockchain networks and addresses. 



It is worth bearing in mind that the net outflow from Binance US was primarily driven by two substantial withdrawals of approximately $62 million in the form of MATIC tokens.


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As a matter of fact, according to data from Cointelegraph Markets Pro and TradingView, there has been a continuous recovery in the BTC/USD pair, reaching a price of $26,250 on the Bitstamp exchange.



In the past day, the pair had experienced a decline, reaching nearly three-month lows of $25,350. This drop was influenced by the news of the lawsuit against the cryptocurrency exchange Coinbase. 



Nevertheless, the legal action against Binance, the largest crypto exchange, by the U.S. authorities on the previous day had a more significant impact on the cryptocurrency markets.



Ki Young Ju, the CEO of CryptoQuant, an analytics platform, highlighted that despite the SEC lawsuits, the outflows related to &#8220;unregistered securities&#8221; on Coinbase remained relatively small.



Some traders responded to the recent price movement of BTC with renewed optimism. 



Michaël van de Poppe, the founder and CEO of trading firm Eight, suggested that the recent news could potentially mark the low point of the market correction. 



Another trader and CryptoQuant contributing analyst, known as Maartunn, even announced buying BTC below the $26,000 mark. 



In a tweet, Maartunn acknowledged the existence of potential risks such as the U.S. government selling BTC or a potential recession but expressed confidence that the bottom had been reached, with the price not likely to trade below $20,000. The trader felt satisfied with buying BTC close to the $20,000 level, as it seemed to be a favorable opportunity.



In the face of the ongoing battle between regulatory authorities, it is evident that the crypto community remains steadfast in its convictions. Despite the legal actions taken by regulators, there is no doubt that the crypto industry will continue to fight for what it believes in.



An encouraging sign of resilience is the fact that net flows, which many expected to plummet dramatically, have remained relatively stable. This demonstrates the unwavering commitment of the crypto community and its determination to navigate through regulatory challenges while staying true to its principles. 



The continued resilience of net flows is a testament to the strength and conviction within the crypto community, signaling its resolve to persevere and shape the future of decentralized finance.
The post <a rel="nofollow" href="https://www.unlock-bc.com/103104/resilience-amidst-regulatory-storm-net-flows-of-binance-and-coinbase-reflect-steadfast-crypto-community/">Binance and Coinbase Net Flows Defy Expectations,</a> appeared first on <a rel="nofollow" href="https://www.unlock-bc.com">UNLOCK Blockchain</a>.

Binance and Coinbase Net Flows Defy Expectations,

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Ďalšie články zverejnené 8. 6. 2023

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