— Binance CEO Changpeng Zhao assures clients that increased withdrawal requests were normal.
— Crypto entusiasts are panicking amidst the wealth wipe out that FTX crash caused.
Binance has reported seeing a slight increase in the number of withdrawal requests on its platform, since the collapse of fellow exchange company, FTX.
CEO Changpeng Zhao stepped in to reassure customers not to panic in a live QnA session on Twitter this Monday. He said that there have been no increase in withdrawals from some cold wallets, meaning that users who hold large amounts of crypto on the platform are not planning to run away anytime soon.
Even regarding the slightly higher withdrawal activities, Zhao said that the actions are quite normal for when prices drop. According to CNBC, the result of FTX’s crash and burn is that bitcoin took a major blow. The digital asset was trading at $16,000 on Monday.
“We have not seen like 80% withdrawn from our cold wallets, or 50% of funds flowing from our platform, whereas it maybe happened with some other platforms. For us, it’s still business as usual,” Binance boss told clients.
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As Zhao had said during the early period of FTX collapse, the effect would be far reaching and he did not see it as a win. Although, his tweet about selling $580 million of FTX’s FTT token had contributed to the increase in withdrawals, which left the platform tottering.
Zhao had apologised for his role in FTX downfall and said that he did not expect the reactions that his tweet generated. However, he further gave crypto enthusiasts hope that the ‘contagion effects’ of FTX’s collapse would become smaller and smaller, lessening over time. “A couple of years later all of this will blow away. People may not even remember this,” he further said.
Binance plans to set up an industry recovery fund to bail out crypto firms in trouble and save them from the negative effects of a major negative industry event. Recall that the company had initially showed interest in helping FTX before backing out of the deal due to details it uncovered while going through its books with a fine comb.
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