Changpeng Zhao seeks to reassure Binance users on USDC outflows, saying they can “withdraw any other stablecoin”; Nansen shows $1.6B in ETH outflows in 24 hours

- Binance CEO Changpeng Zhao has addressed major USD Coin outflows. — Some $1.6 billion has been withdrawn …

The Block 2022-12-13 Adam James

Context & Ripple Effects

The withdrawal burst followed a broader exchange-wide wave of ether and stablecoin withdrawals reported by Nansen a month earlier, putting Binance's ability to process exits at the center of user attention. Later coverage connects similar Binance outflow episodes to pressure on its stablecoin business and regulatory action, rather than treating them as isolated trading events.

First-order effects

Binance must meet elevated USDC and ether withdrawal demand while Zhao directs users toward other stablecoins, making available liquidity and withdrawal processing the immediate test for the exchange.
Nansen's flow data gives Binance users a visible daily measure of withdrawals, amplifying the significance of the reported $1.6 billion ether outflow.

Second-order effects

The earlier market-wide withdrawal episode gives users a benchmark for comparing Binance's flows with broader exchange behavior, increasing the value of on-chain flow monitoring during stress.
Binance's stablecoin liquidity becomes more consequential because later coverage says BUSD accounted for about 40% of its December trading volume before regulatory pressure drove BUSD withdrawals.

Third-order effects

Subsequent Binance episodes show that regulatory actions can coincide with rapid withdrawals: Nansen and Glassnode recorded large exchange outflows after the SEC lawsuits against Binance and Coinbase.
The pattern points to centralized exchanges facing recurring, observable liquidity tests when confidence in their stablecoin access or legal position weakens.

The trend: On-chain withdrawal data is becoming a real-time gauge of how regulatory and confidence shocks transmit through centralized crypto exchanges.

Discussion

@cz_binance @cz_binance on x
On USDC, we have seen an increase in withdrawals. However, the channel to swap from PAX/BUSD to USDC requires going through a bank in NY in USD. The banks are not open for another few hours. We expect the situation will be restored when the banks open. 1/2
@justinsuntron H.E. Justin Sun on x
I just deposited 100 million USD into @binance. 我刚刚.币安充值1亿.元。 https://etherscan.io/...
@binance @binance on x
Binance is conducting a token swap involving $USDC. As a result, $USDC withdrawals are temporarily paused. $USDT & #BUSD withdrawals are available and unaffected. $USDC withdrawals will reopen once the token swap is completed. https://twitter.com/...
@nansen_ai @nansen_ai on x
There's a spike in withdrawals from Binance in the last 24H with -$1.6B* netflow Its 7-day netflow is now at -$1.9B, currently this is less than the -$2.3B weekly netflow Binance has processed in the wake of FTX collapse *ETH & ERC20 tokens only https://twitter.com/...
@wublockchain Wu Blockchain on x
According to lookonchain, Justin Sun(0x9f84) withdrew 34m BUSD and 15.4m USDT from Binance 9 hours ago, and transferred them to Paxos and Circle for suspected cash out. Justin Sun responded that the recent allocation of funds is just normal business cooperation.
@cz_binance @cz_binance on x
These are 1:1 conversions, no margin or leverage involved. We will also try to establish more fluid swap channels in the future. In the meantime, feel free to withdraw any other stable coin, BUSD, USDT, etc. 🙏2/2
@cz_binance @cz_binance on x
This is part of deploying BUSD on TRON, I think. Cross-chain swaps. Not sure of the details. Not directly handling it myself. https://twitter.com/...
@malwarejake Jake Williams on x
Looking like another house of cards getting ready to collapse. Regardless of whether you think Binance is solvent (recall most thought this of Celsius, FTX, etc.), one thing is for sure: there's not enough fiat in the ecosystem. It's musical chairs... https://www.cnbc.com/...
@jp_koning John Paul Koning on x
- Binance introduced 1:1 stablecoin conversions last fall, effectively pegging the price of BUSD and USDC - A peg requires a supply of both stablecoins. Binance ran out of USDC - Instead of letting USDC's price float, Binance halted USDC withdrawals as it waits for new supply htt…
@peckshieldalert @peckshieldalert on x
#PeckShieldAlert Seems like Binance has suspended $USDC withdrawals for ETH/BNB/TRX https://twitter.com/... https://twitter.com/...
@0xponzischeme @0xponzischeme on x
binace fud is mostly cloutchasing; if wrong: no big deal, if right: SEE I TOLD YOU SO. BUY MY NEWSLETTER NEXT here's the joke: most of these binance-fudders kept their funds on an exchange ran by Schlomo Bankmanstein Fried. and now all of a sudden theyre experts on risk okidoki
@jp_koning John Paul Koning on x
-Binance introduced 1:1 stablecoin conversions last fall. It effectively pegs the price of BUSD and USDC -A peg requires having a supply of both stablecoins on hand. Binance ran out of USDC -Binance could let USDC float. Instead, it halted withdrawals as it waits for new supply h…
@cz_binance @cz_binance on x
FUD helps us grow, even though they are thoroughly annoying. You can FUD about someone without explicitly mentioning their name, which spreads awareness. It also helps unite their supporters because it forms a common defense alliance. Short thread. 1/4 https://twitter.com/...
@cz_binance @cz_binance on x
We were a new startup, not able to reach all the media outlets. This “competitor” helped us to get the word out. I had many inquiries like: “hey, just read about you, the article is negative, but it's obviously an attack, so I want to invest in you.” 3/4
@cz_binance @cz_binance on x
From day 1 of the Binance ICO (5 years ago), there were FUD sponsored by a large exchange then (now very small). Articles from “Why Binance ICO will fail” to “CZ can't write code” showed up magically. 2/4
@tree_of_alpha @tree_of_alpha on x
That was also my guess. The fact Binance made USDC/PAX stables auto-convert to BUSD means if too many people withdraw USDC they eventually need to swap the BUSD back to USDC. If USDC wallets dry up, that could sometimes take longer than comfortable. https://twitter.com/...
@fredwalton216 Fred Walton on x
6) FT - “These are 1:1 conversions, no margin or leverage involved. We will also try to establish more fluid swap channels in the future. In the meantime, feel free to withdraw any other stable coin, BUSD, USDT, etc.” 🙏2/2 https://twitter.com/...
@j0e007 @j0e007 on x
Binance pioneered the model of being fake coin casino using fake trading volumes and promoting fake innovations. It would be highly ironic if in the end it's brought down due to fake reserves. https://www.coindesk.com/...
@adamscochran Adam Cochran on x
How the hell can CZ not afford a half component PR person? https://twitter.com/...
@akadosang @akadosang on x
Yeah only: - We don't know if BNB is being used to back other stuff it shouldn't - BUSD outside Ethereum can be issued at will by Binance and not controlled by Paxus https://twitter.com/...
@nansen_ai @nansen_ai on x
Coinbase is the largest ETH exchange holder with 8.71M ETH (~$11B), accounting for 34% of all ETH on exchanges Binance holds 5.19M ETH Bitfinex: 2.27M ETH Kraken: 1.98M ETH Gemini: 1.3M ETH OKX: 1.08M ETH And others https://twitter.com/...
@jackniewold @jackniewold on x
Binance holdings as of today; still $63b in value and plenty of stables/BTC/ETH FTX was a ponzi built on illiquid investments that held no customer deposits. Once one asset was illiquid they all were. Binance has always looked to operate above-the-board, I'm optimistic for now ht…
@cz_binance @cz_binance on x
Since then, there has hardly been a week going by without some FUD. We learned the ability to ignore them and keep building. We thank you for all your support over the years. And let's continue to build together. 4/4 🙏
@simondixontwitt Simon Dixon on x
Please be overcautious. Exchanges are not the place to store your coins. You should only use them for trading. In & Out. Self-custody or regulated non-exchange custody for storage only if you are not ready yet. Only yield what you are willing to lose. Yield is a risky investment.…
@mikeburgersburg @mikeburgersburg on x
Um. This is the same thing FTX was saying last month. And if he is referring to Signature, their services are offered 24/7... https://twitter.com/... https://twitter.com/...
@tree_of_alpha @tree_of_alpha on x
Binance is experiencing an increase in traffic, rendering some functions unavailable and some balances to not display properly.
@tree_of_alpha @tree_of_alpha on x
AAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAA AAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAA AAAAAAAAAAAAAAAAAAAAAA https://twitter.com/...
@route2fi @route2fi on x
What he's basically saying with this: “While all you f*ckers tried to get out of Binance, I deposited millions to long” https://twitter.com/...
@kamikaz_eth @kamikaz_eth on x
It's your choice if you want to trust the stateless mafia clown who has been having a nervous breakdown on Twitter the past few days, screaming at random accounts like a mentally ill homeless person in the NYC subway I'll stick with DEX and hold my coins on hardware wallets ✌🏻 ht…
@loopifyyy @loopifyyy on x
it will be EXTREMELY detrimental to price which will affect thousands of projects, millions of people, etc but at the base level of what crypto stands for, the tech will still exist. eth will still work. btc will still be here. etc.
@lookonchain @lookonchain on x
The data on the chain shows that Justin Sun's 100M $USDC was withdrawn from #justlend and cross-chained to Ethereum via #Circle. @cz_binance Not depositing USD cash to #Circle directly for $USDC. https://tronscan.org/... https://twitter.com/... https://twitter.com/...
@themlpx @themlpx on x
1/ Took a quick look at token flows from Binance in the last 24 hours on @nansen_ai Net outflow of $632M against a total flow (in + out) of $2.1B https://twitter.com/...

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