The Current State of Binance: Examining Recent Developments and Assessing Trustworthiness | by Deniz Tutku | Coinmonks | Jun, 2023

Recently, Changpeng Zhao (CZ), the CEO of Binance, tweeted that Binance experienced a significant outflow of funds amounting to approximately $392 million within 24 hours.

Deniz Tutku

Such a reaction from users was probably to be expected, especially considering the recent lawsuit filed by the U.S. Securities and Exchange Commission against both Binance and Coinbase. This lawsuit triggered a strong reaction from users and had a general impact on the entire cryptocurrency market, which has been experiencing a downturn for some time. Overall, after the FTX crash, the community was on edge, and it is evident that the SEC lawsuit against Binance and Coinbase caused serious concerns.

These events have deeply puzzled me and my friends, as such actions from users often draw attention in the cryptocurrency industry. Like everyone else, we closely monitor market movements, particularly the decline and overall movement of cryptocurrency exchanges, including Binance.

We observed how, prior to the “exchange that shall not be named” crash, even Changpeng Zhao himself rushed to assure users that the negative news was caused by “false rumors spread by a competitor”. And after said: “everything is fine with the exchange and its assets (the tweet was later deleted)”, — however, the panicked communities were unstoppable.

After the FTX crash, on November 9th, Changpeng Zhao wrote on his Twitter account:

Today, we can see that CZ, a long-time close friend of Sam, is reassuring his users and assuring the public that the exchange is afloat and that the company’s financial situation is fine. You can see the users’ reactions to the tweets and their opinions for yourself, as they are publicly available.

My experience

I would like to highlight that we have also gained firsthand experience with Binance, which I previously discussed in another article accessible through the provided link. Within that article, I have meticulously documented a comprehensive account of the questionable activities in which the exchange has been implicated over time.

Regardless of the multitude of events occurring on the internet, I want to offer reassurance and emphasize that the responsibility for safeguarding your assets lies entirely with you.

Other cryptocurrency exchanges in the market:

Don’t lose hope. If we look at the market as a whole, we can identify numerous cryptocurrency exchanges that make a significant contribution to the cryptocurrency industry’s benefit. For instance, some of them introduce various features and capabilities to optimize their operations. Examples include KYC (Know Your Customer) procedures, QR code-based login, and offering users the opportunity to try out Testnets, which enhance the security of your assets.

Platforms that have already launched Testnets in 2023:

Link to Bybit Testnet Guide

Link to WhiteBIT Network Testnet

Link to Zksync Testnet Guide

Furthermore, many platforms provide users with different courses and necessary information on their platforms to make it easier and more understandable for anyone to work with cryptocurrencies.

How did investors react to the situation?

According to many traders, a significant number of arbitrage traders often transfer large sums of money between exchanges on days when asset prices fluctuate the most, leading to a significant outflow from Binance.

Yes, as you may have guessed, this is done to profit from price differences on various platforms and in no way indicates users’ distrust of the project.

Of course, we noticed that this is not the first time such a massive outflow of funds has occurred on Binance. In his defense, the CEO stated that users withdrew $7 billion in November 2022 in a single day, but the exchange did not violate its obligations in any way and continued to operate.


🗯️Binance generated $20 billion in revenue in 2021, a 263% increase from the previous year.
🗯️Binance reported a profit of $800 million to $1 billion in 2020, with no published figures for 2021.
🗯️Binance had 28.6 million annual users on its platform in 2021, an increase of 7.1 million users from the 2020 year.
🗯️Binance’s 24-hour trading volume reached $76 billion in 2021, more than double its 2020 peak.
🗯️Over $9 trillion was traded on Binance in 2021, a 794% increase from the previous year.
🗯️Binance.US has a $4.5 billion valuation as of 2021.
🗯️65% of Binance users own Bitcoin.
🗯️Over 90% of Binance users are male, and the average user is 35 years old.
🗯️Binance Coin has a $70 billion market cap as of October 2021.
As of October 2021, there are 337 coins available on Binance.

According to Glassnode’s information published on June 6th, after the SEC filed 13 civil lawsuits against Binance, the exchange experienced a net outflow of 10,500 bitcoins (BTC).

Binance present situation

Despite the increase, the current outflow value remains significantly below the record value of 40,300 BTC. Additionally, withdrawals ranging from 1 to 10 million US dollars account for 51% of the outflow, indicating that larger transactions have a major impact on the overall fund movement. Despite recent withdrawals, Binance still holds a significant amount of Bitcoin on its exchange addresses.
According to Glassnode, the current balance is 694,000 BTC, which is 10,500 BTC less than the historical peak of 704,500 BTC.

The situation with Binance does raise concerns and prompts us to question whether everything is well with the exchange. Should we trust it? Despite all the lawsuits and scandals, as well as the various negative information leaking into the network, Binance still holds a significant amount of Bitcoin on its platform.


The recent events surrounding Binance have raised concerns and cast doubt on the trustworthiness of the exchange. The significant outflow of funds, the lawsuit filed by the U.S. Securities and Exchange Commission, and the overall downturn in the cryptocurrency market have all contributed to the community’s apprehension. Despite attempts by Changpeng Zhao to reassure users, the situation remains uncertain.
It is important to note that our personal experience with Binance has exposed us to the questionable activities in which the exchange has been involved. This underscores the need for individuals to take responsibility for the security of their assets in the cryptocurrency space. However, it’s worth mentioning that there are several other cryptocurrency exchanges in the market that are making positive contributions to the industry.
Ultimately, the situation with Binance prompts us to question its current state and whether we should place our trust in it. It is crucial for individuals to conduct their own research, assess the risks involved, and make informed decisions about with a choosing any cryptocurrency exchange.

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