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4 Trillion SHIB Transferred Out of Binance, What's Going On?

Tue, 01/10/2023 - 10:55
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Godfrey Benjamin
Shiba Inu whale has moved 4 trillion tokens from Binance with exchange losing over $12 billion in 60 days
4 Trillion SHIB Transferred Out of Binance, What's Going On?
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A Shiba Inu (SHIB) whale has transferred as much as 4 trillion tokens from Binance, the world's largest crypto exchange by trading volume, to an unknown wallet. According to data from crypto analytics provider Whale Alert, the transferred SHIB tokens are worth $34,736,666, and its consistency is beginning to stir a number of theories about the trading platform.

Exchange activities imply that assets will be moved from one venue to the other, and exchanges stay solvent when the total assets coming in exceed those being withdrawn per time period. Since the collapse of the FTX derivatives exchange, there has been quite a scare for centralized exchanges, especially Binance, which controls a significant market share.

Per the Fear, Uncertainty and Doubt (FUD) that engulfed Binance, the exchange has been seeing significant withdrawals. As reported by U.Today, citing data from business media outlet Forbes, Binance has recorded more than $12 billion in funds outflows over the course of two months.

The exchange is also recording a relatively slower trading volume growth as current data shows this metric for the trading platform surged by 20% at the time of writing, as compared to 31.8% for Coinbase and 62.3% for Kraken.

Should customers be concerned?

The outflow of funds from Binance and the ability to meet its current withdrawal obligation is evident as the exchange has the right funds in its proof of reserve, which it published and verified with Mazars last year.

Despite the recorded fund outflow, the trading platform is still recording inflows, including the more than $8 million that a MATIC whale moved to the exchange recently. Binance CEO Changpeng "CZ" Zhao has often reiterated that the exchange is not new to funds withdrawal. Despite the clamor for decentralized custody of funds based on recent realities, Binance still commands a significant trading volume compared to its top competitors.

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About the author

Godfrey Benjamin is an experienced crypto journalist whose main goal is to educate everyone around him about the prospects of Web 3.0. His love for crypto was birthed when, as a former banker, he discovered the obvious advantages of decentralized money over traditional payments. With his vast experience covering various aspects of Web3, Godfrey's articles has been featured on, Cryptonews and Coingape, among others.