Binance Sees Modest Inflows as Exchange Red Flags Rise

Cryptocurrency investors are staying in the sidelines as risks in the industry continue. In the past few weeks, the number of crypto holders selling their coins or moving them to self-custody has jumped to a record high. Binance, being the biggest player in the industry, has seen the most outflows.

Binance sees modest inflows

Binance has come under intense pressure in the past few months. On Tuesday, as Binance FUD trended on Twitter, the company saw outflows worth over $3 billion. Data compiled by DeFi Llama shows that Binance has lost over $7 billion worth of assets in the past 7 days. Other exchanges like Bitfinex, Huobi, Crypto.com, and Kucoin have seen slight outflows. 

However, as confirmed by Changpeng Zhao, the company has started seeing some inflows after Tuesday’s inflation data. According to DeFi Llama, Binace has had inflow worth over $467 million in the past 24 hours. 

As a result, the total amount of assets in Binance has risen to $59.81 billion. Clean assets, which excludes those issued by Binance, are over $48 billion.

Binance red flags

Binance has come under pressure for numerous reasons. First, there are rumours that Changpeng Zhao could come under arrest by American authorities. According to the Wall Street Journal, authorities are investigating the company because of money laundering and other crimes.

At the same time, there are concerns about the company’s finances. Analysts poked holes into the firm’s statement of reserves that it published last month. A key concern is that the finances were not conclusive enough since they did not show liabilities. Also, they did not show other assets held by the company. 

Most importantly, Binance’s five-page document was made by the South African branch of Mazars. While Mazars is a big company, investors would have gained more confidence if the statement was made by one of the big four firms like KPMG, PWC, Deloitte, or EY.

Further, the inner workings of the company. For one, unlike other companies, it does not have a headquarter.