Crypto community members discuss Bank-run on Binance

Within the past 24 hours, the Binance cryptocurrency exchange has seen outflows of over $1.14B due to rising fear, uncertainty and doubt (FUD) within the crypto ecosystem. 

According to Binance CEO Changpeng “CZ” Zhao, the exchange has seen this before and believes “it is a good idea to ‘stress test withdrawals’ on each CEX [Centralized Exchanges] on a rotating basis”. 

The bank run on Binance comes a month after, the Binance CEO triggered a bank run on FTX, which led to the its liquidity issues, and eventual collapse.

Despite the FUDrampant within the crypto community, members remain optimistic that Binance will weather the storm, and will not share the same fate as FTX. While others speculate that if Binance goes down, the entire crypto industry might be brought to its knees. 

Bitcoin millionaire Carl Runefelt opined on his Twitter account that; “If Binance collapses we’re all fucked.”

Author and Bitcoin enthusiast, Layah Heilpern, shared: “You realise if Binance goes down everything else will crumble? Yes #bitcoin will survive but the entire crypto ecosystem including stablecoins will die.”

Twitter account holder Crypto Cognac shared that Binance going down wouldn’t do the space any good, as it would send the space “back to the stone age.”

Twitter account holder Timverse said they believe that if Binance became insolvent, it would “set the industry back” by years, however, crypto would survive because “ Crypto has been here way before binance came to existence & it will be here thereafter.”

Crypto Analyst and Government advisor, Del Crxpto accused crypto media outlets of promoting the FUD against Binance sharing, “The media are trying to cause a bank run on binance. In the last several weeks they have attempted to push several narratives to this regards, with the latest being that binance did not pass an audit. The fact is, time is the #1 audit and binance has proven the test of time.”

Related: Abnormal token price movements on Binance not hack-related, confirms CZ

On Dec 11, Cointelegraph reported that Binance’s proof of reserves raised red flags for accounting and financial specialists, and had been labeled “pointless” by rivals, as it failed to include liabilities.