Changpeng Zhao, the CEO of Binance, claimed on Wednesday that things have “stabilised” at his cryptocurrency exchange to ease investors’ concerns after the business was compelled to stop stablecoin withdrawals.
Zhao said there were over $1.14 billion in net withdrawals on Tuesday, but he also tweeted that this was a smaller number of withdrawals than he had ever handled. According to the CEO, deposits are returning to Binance.
His comments come after Binance temporarily suspended USDC stablecoin withdrawals on Tuesday as part of a “token swap.” Binance has seen an rise in USDC withdrawals, according to Zhao. The suspension of withdrawals, according to Zhao, was caused by the fact that some currency swap had to be processed through an unnamed bank in New York that was not operating. Binance resumed withdrawals after a nearly eight-hour pause.
The incident put investors on edge, especially after the collapse of the cryptocurrency exchange FTX also the subsequent arrest of Sam Bankman-Fried, who founded it and is now facing federal charges.
The circumstance is different from FTX, which saw exits to the “tune of multi-billion dollars,” according to Alex Svanevik, CEO of Nansen.
“I believe that you can tell that Binance withdrawals are bigger than usual. So it is obviously worth monitoring, but as far as I can tell at this moment, this is completely different from the FTX scenario, Svanevik said on Wednesday’s episode of CNBC’s “Capital Connection.”
Svanevik pointed out that only a tiny part of Binance’s assets which total about $60 billion—is being withdrawn from its exchange.
Zhao from Binance has also managed to project strength within Binance.
Zhao stated in an internal memo obtained by Bloomberg that “we expect the next some months to be bumpy, but we will get beyond this hard phase also we will be better for having been through it.”