Crypto Community Members Discuss Binance Banking Race

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In the past 24 hours, cryptocurrency exchange Binance has seen outflows of over $1.14 billion due to increased FUD or fear, uncertainty and doubt within of the crypto ecosystem.

According to Binance CEO Changpeng CZ Zhao, the exchange has seen this before, and he thinks it’s a good idea to test withdrawals on every CEX. [centralized exchange] in turn.

We saw some drawdowns today (net $1.14 billion). We have seen this before. On some days we have net withdrawals; some days we have net deposits. As usual for us.

In fact, I think it’s a good idea to test withdrawals on each CEX in turn.

1/2 https://t.co/uF9lLPDSyS

— CZ Binance (@cz_binance) December 13, 2022

The bank run on Binance comes a month after CZ triggered a bank run on FTX, leading to liquidity issues and its eventual collapse.

Despite rampant FUD within the crypto community, many members remain optimistic that Binance will weather the storm and not share the same fate as FTX. Others speculate that if Binance goes down, the entire crypto industry could be brought to its knees.

Bitcoin (BTC) millionaire Carl Runefelt said on Twitter that If Binance crashes, it’s all over.

If Binance’s Collapses Were All Fucked Up

— Carl of the Moon (@TheMoonCarl) December 13, 2022

Author and Bitcoin enthusiast Layah Heilpern shared: Do you realize that if Binance goes down, everything else will go down? Yes #bitcoin will survive but the whole crypto ecosystem including stablecoins will die.”

I don’t understand why people are applauding Binance’s collapse.

Do you realize that if Binance goes down, everything else will go down? Yes #bitcoin will survive but the whole crypto ecosystem including stablecoins will die.

— Layah Heilpern (@LayahHeilpern) December 13, 2022

Twitter user Crypto Cognac shared that the fall of Binance would do the space no good, as it would send the space back to the Stone Age.

If Binance goes down, it won’t do this space any good. Back to the stone age. Binance is my #1 exchange. I think Binance is doing well and this is a coordinated FUD campaign run by an entity that wants crypto to fail.

— Crypto Cognac (@CognacCrypto) December 13, 2022

Timverse said they believe that if Binance goes insolvent, it will set the industry back several years, although the crypto will survive because it was here long before Binance existed and it will be here after.

Binance’s insolvency will certainly set the industry back a few years. I agree on that. But will the crypto industry go away… no, I disagree.

— Timsverse (@Timsverse) December 13, 2022

Crypto analyst and government adviser Del Crxpto has accused crypto media of promoting FUD around Binance, sharing, Media is trying to instigate a run on the onbinance bank. Over the past few weeks, they have attempted to push several stories in this regard, the latest being that Binance failed to pass an audit. The thing is, time is the #1 audit and binance has proven the test of time.

The media is trying to cause a bank run on @binance.

Over the past few weeks they have attempted to push multiple stories in this regard, the latest being that @binance failed to pass an audit.

Fact is, time is the #1 audit and @binance has proven the test of time.

— Del Crxpto (@DelCrxpto) December 13, 2022

Related: Abnormal Token Price Movements on Binance Not Hack-Related, CZ Confirms

On December 11, Cointelegraph reported that Binances’ proof of reserves had raised red flags for accounting and financial specialists and had been called unnecessary by rivals because it did not include liabilities.

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