Crypto exchange Binance has announced that the large volumes of Bitcoin (BTC) outflows reported by most data collectors are false. Meanwhile, Binance CEO Changpeng Zhao responded to a tweet featuring BSV. Here are the details…
Changpeng Zhao explained: That’s why we use Bitcoin
Changpeng Zhao, CEO of Binance, popularly known as “CZ”, explained on Monday why he is still using Bitcoin despite the recent BTC network congestion that has caused two withdrawals to stall in the past 24 hours. CZ’s statement came after a Twitter account pointed out that BTC was unavailable. It was in response to a user’s suggestion that an alternative like BSV should be used instead. Additionally, CZ acknowledged issues such as fluctuating GAS prices, tight transactions, and rising fees. However, he reminded users that these are problems experienced during a “bull market”. He also noted that BTC transactions remain “faster and cheaper than fiat.”
https://twitter.com/cz_binance/status/1655441114877362176
According to Mempool.space, over 469,000 transactions were expected to be processed on the Bitcoin network over the weekend. At the time of this writing, BTC withdrawals had resumed on Binance. It is worth noting that Craig Wright, who claims to be the creator of Bitcoin, is a strong proponent of the BSV cryptocurrency.
Binance had problems with Bitcoin transactions
According to a tweet dated May 8, the exchange said that the reported “exits” were internal movements between its hot and cold wallets due to address adjustments. Coinglass data showed that over the past 24 hours, Binance has experienced around 180,000 BTC exits. This is confirmed by CryptoQuant data, which shows that the exchange has seen outflows of around 190,000 BTC in two days. These reported exits have caused concerns among several crypto community members who have expressed concerns about the balance of the exchange.
https://twitter.com/RealMadMoeney/status/1655251135567917057
However, CryptoQuant head of research Julio Moreno reported that “two transactions of 117,000 and 40,000 Bitcoins” were “sent to the newly created exchange addresses owned by Binance.” Moreno added that the exits from Binance are probably around 10,100. Joe Consorti, a market analyst at Bitcoin Layer, stated that “Binance has not actually seen a major drop in Bitcoin balance.” According to Consorti, the problems were caused by mislabeled wallets by different service providers. This made regular wallet shuffles look like deposit outflows. He added:
In reality, BTC exits are much quieter, with only 11,000 coins exiting last week.
A lot of people commenting about the huge Bitcoin outflows from Binance today.
Two transactions of 117K and 40K Bitcoin respectively.In reality, these are bitcoin sent to newly created change addresses that belong to Binance.
Effective outflows are most likely just 10,100… pic.twitter.com/c5z8WOshG6
— Julio Moreno (@jjcmoreno) May 7, 2023
Working on Lightning Network integration
Meanwhile, Binance said its DeFiLlama data provides accurate information on wallet movement. According to the data, there is $16.9 billion worth of Bitcoin on the exchange. Moreover, the total value of assets on the platform is worth $65.61 billion. Earlier today, Binance had to pause withdrawals twice within 24 hours, as we reported on cryptokoin.com. The exchange said it is working to provide Bitcoin Lightning Network integration due to network congestion issues.
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