Market jitters triggered by insolvency fears
Rumors have sparked turmoil across the cryptocurrency market, alleging that Binance suffered $17 billion in withdrawals within just seven days, igniting solvency concerns and drawing parallels to the FTX collapse. A post by the account KookCapitalLLC on X urged users to withdraw their funds immediately, significantly heightening market fear. Binance responded calmly, dismissing the accusations and attributing the figures to technical errors from third-party data providers such as Coinglass and DefiLlama, which—as the exchange noted—had displayed similar inaccuracies in the past. Within 24 to 48 hours, the data was reportedly recalibrated.
Stress test
The company’s co-founder and head, He Yi, characterized the wave of withdrawals as a "healthy stress test" for the entire industry, noting that such trials strengthen the transparency and resilience of platforms. Going a step further, Binance proposed the institutionalization of an annual "Withdrawal Day," during which all users would simultaneously withdraw their funds to force every exchange to actively prove its reserves. The proposal was presented as a move toward universal transparency, aiming to transform fear and FUD (Fear, Uncertainty, and Doubt) into an opportunity to bolster investor trust.
Transparency in numbers
In terms of figures, Binance maintains that it holds reserves totaling $155 billion, with a coverage ratio of over 100% for all customer assets. The platform's native token, BNB, was trading at approximately $607 at the time of publication. Analysts suggest that while the market volatility remains high, the exchange's push for "Proof of Reserves" may set a new benchmark for the sector.
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