Binance CEO Ridicules Critics as Two US Banks Topple in the Same Week
The Chief Executive Officer of the biggest cryptocurrency exchange, Binance, Changpeng Zhao, turned to Twitter to make fun of US critics after learning that two prominent banks in the United States had become insolvent and could not process client withdrawals.
“They FUD us, and banks collapse,” Zhao tweeted, alluding to how Binance stayed strong although the continual negative propaganda it received from US groups who anticipated the exchange would fail. The failure, however, was on the part of corporations established in the United States.
The crypto conundrum: Banks brace for a liquidity crunch
Silicon Valley Bank had a total asset value of $209 billion, and Silvergate, a bank that concentrated on cryptocurrency, are the two American banks that have lately failed. In the wake of the failure of the FTX cryptocurrency exchange in November of last year, Binance had to contend with a steady stream of negative narratives from various sources. These narratives speculated that the most prominent crypto asset manager might also be experiencing a liquidity crunch.
Cryptocurrency investors hurriedly withdrew their assets from Binance as fear, anxiety, and skepticism spread across the community. Binance passed what some analysts have characterized as one of the most rigorous stress tests that any financial institution has ever been subjected to, despite the widespread fear, uncertainty, and doubt that existed at the time. According to the data on the chain, the exchange was able to handle withdrawals totaling over $14 billion within a few weeks.
Binance’s reserves soar: Crypto dominance ensues
Binance’s reserves have been steadily growing, according to the statistics, which is an interesting development. According to research published not too long ago, Binance has retained an advantage over its rivals with respect to the percentage of the cryptocurrency spot market they hold.
Source: CryptoCompare.com
Binance’s spot volumes increased by 13.7% to an all-time high of $504 billion, according to market research firm crypto compare’s findings. This places Binance ahead of other top-tier cryptocurrency exchanges, such as Coinbase and Kraken, by a significant margin, despite the regulatory frictions and community FUDs.
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