Over $8 Billion Withdrawn From Exchanges Following FTX Collapse

By akohad Nov15,2022

[ad_1]

Net exchange outflows have soared in the wake of FTX’s bankruptcy, inciting crypto holders everywhere to look after their own digital assets. 

Data from on-chain analysis firm CryptoQuant shows that over $8 billion in crypto has flowed off of centralized exchanges since November 6th – when worries about FTX’s solvency began to propagate.

  • Since Binance CEO Changpeng Zhao’s worrying statements about FTX last week, $3.7 billion worth of Bitcoin has been withdrawn from centralized exchanges. About $2.5 billion in Ether have also left exchanges, alongside about $2 billion worth of stablecoins.
  • Centralized exchange reserves have now touched their lowest level since November 2018, now at just 2.089 million Bitcoin, and 19.999 million Ether.
  • Last Wednesday, CryptoQuant noted that over 80,000 BTC had left exchanges within a 24-hour period. The firm framed the data as “investors losing confidence in central exchanges.”
  • This was one day after crypto exchange FTX froze user withdrawals, and requested Binance’s help in addressing a so-called “liquidity crunch.”
  • FTX faced overwhelming withdrawal demand leading up to the freeze, due to rumors that the exchange wasn’t fully backing its users’ assets. On Friday, FTX filed for bankruptcy.
  • Some are now worried that CryptoCom could be facing liquidity trouble following strange on-chain behavior between itself and Gate – a rival exchange.
  • CryptoQuant CEO Ki Young Ju analyzed CryptoCom’s wallet movements on Monday, finding that its stablecoin reserve has fallen by 90% over the past 7 months. Meanwhile, the number of Ether withdrawals at the exchange has reached an all-time high. 
SPECIAL OFFER (Sponsored)

Binance Free $100 (Exclusive): Use this link to register and receive $100 free and 10% off fees on Binance Futures first month (terms).

PrimeXBT Special Offer: Use this link to register & enter POTATO50 code to receive up to $7,000 on your deposits.



[ad_2]

Source link

By akohad

Related Post

Leave a Reply

Your email address will not be published. Required fields are marked *