Changpeng Zhao, Binance CEO, says external factors are creating fear, uncertainty and doubt among the exchange’s users and BNB holders. Binance has been experiencing surge in withdrawals from the platform amid heightened concerns of money laundering.
All eyes are now on Binance following the collapse of FTX. CZ’s crypto exchange saw a spike in withdrawals. It registered $3 billion worth of crypto withdrawal in the past month. Zhao attributed the withdrawals to external factors. He said external factors are driving the fear among investors that are withdrawing funds from the exchange. Moreover, Binance has been under investigation for money laundering. But the platform also assisted the US Drug Enforcement Administration to unravel a drug conspiracy case.
To address the fears, CZ has reportedly sent out personal emails to each client and addressed the FUD. However, hacks and exploits on the BNB chain pose a challenge for users and investors to trust the platform and the BNB token. At the time of writing this article, BNB was down by 0.16% in the last 24 hours and trading at $242.87. The Binance token lost 2.41% of its value in the past week.
First minted in 2017, BNB is the world’s fifth most valuable cryptocurrency. It has a market cap of $39 billion.