(Bloomberg) -- Binance Holdings Ltd., the world's largest cryptocurrency exchange, has attempted to allay exit concerns by saying it is debt-free and backed by users' assets.
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In response to recent withdrawals and concerns about transparency, a company spokesperson said in an email: “People deposit and withdraw assets every day for a variety of reasons. Binance users' assets are 1:1 backed, and Binance's capital structure is debt-free."
This week, amid a lack of confidence in the crypto sector following the collapse of rival FTX, billionaire Changpeng “CZ” Zhao poured money into consumer platforms. FTX co-founder Sam Bankman-Fried has been accused of embezzling billions of dollars of client funds.
Binance had a net daily flow of bitcoin and ether in terms of token supply on Tuesday, according to research firm CryptoQuant. According to statistics, a total of 40,353 bitcoins and 278,017 ether tokens were removed.
© BloombergIn a tweet on Wednesday, Zhao said "everything is stable" and "contributors will return." Binance previously said it had withdrawn about $1.14 billion as of Tuesday.
As of 12:25 pm on Wednesday in Singapore, $256 million has been deposited on Binance in the last 24 hours. Over the past seven days, the net inflow was $1.2 billion. The Nansen chart does not account for Bitcoin activity.
“We are waiting for the new wallets to fulfill withdrawal requests and ensure that there are sufficient funds available to fund the new wallets,” a Binance spokesperson said in an email. A hot wallet is a store of digital tokens connected to the Internet.
In a November blog post, Binance shared about $69 billion worth of digital asset wallet addresses with tokens.
The exchange released confirmation of its standby report last week. The document, based on a brief overview of the mathematical market, shows that the exchange has enough crypto assets to balance the overall obligations of the platform.
The report acknowledges limitations as it is not a full financial audit that gives a clear picture of the overall health of Binance.
“When sharing relevant financial information with them, we are working with Mazar to ensure that all information we share is accurate,” the spokesperson said. "We are releasing the next incremental token update as soon as possible."
© Bloomberg Binance Coin Lagging Index | Comparative analysis of the top 100 tokens that have surpassed Binance Coin in recent weeks.Binance Coin, the native token of the elephant ecosystem, can be seen as the defining factor of the investor exchange. It has significantly surpassed the benchmark of 100 tokens over a multi-year period. But it fell 4% this week, even though stocks are up 2% overall, according to data compiled by Bloomberg.
Crypto market price: CRYP ; For top crypto news: Top Crypto.
Learn more about Binance Crypto:(Update a recent tweet with Binance CEO Zhao in the fifth paragraph).
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