The fear of loss is a bad feeling, but if you have not lost anything before, you may not understand why Binance users are making panic withdrawals.
The trending situation of founder and CEO Changpeng Zhao is really giving users a reason to rethink their stake in Binance.
At this point, the platform may just be on its way to crashing, seeing how users are making withdrawals.
Now, Binance outflow has exceeded $1 billion within the last twenty-four hours after CEO Changpeng Zhao resigned.
Zhao resigned and pled guilty in court before the Department of Justice to an allegation of money laundering.
According to data from blockchain analysis firm Nansen, BNB, the native token of the exchange, has declined by over 8%.
And there has also been a decline in the cryptocurrency’s market share of spot trading.
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Investigation into the activities of the exchange ended with the U.S. government receiving $4.3 billion in penalties.
However, with an annual trading volume of billions of dollars, Binance continues to be the largest cryptocurrency exchange in the world.
The platform is sufficiently capitalised to withstand an abrupt exodus of investors, as it continues to hold more than $65 billion in assets.
Despite the fact that withdrawals are increasing, a mass exodus of funds from the exchange is yet to occur.
