Twitter user @Cardanians_io has explained to Crypto Twitter why Cardano is much better protected against the fate of FTX and the troubles that hit another major crypto exchange, Binance, yesterday.
@Cardanians_io reminded the community that the founder of FTX, former billionaire Sam Bankman-Fried, was taken into custody in the Bahamas just recently at the request of U.S. prosecutors.
The arrest took place before SBF was able to testify before the U.S. Congress about the collapse of the FTX exchange in early November.
SBF arrested, Binance may face charges too
As covered by U.Today earlier, Binance may face charges of money laundering and violating sanctions from the U.S. prosecutor's office, according to a report by Reuters.
Head of Binance, CZ, commented on this news, calling it FUD. However, investors began to withdraw funds from the platform – mainly Ethereum and ERC20 tokens – for fear of Binance repeating the fate of FTX and SBF.
Over the past week, investors and traders have withdrawn roughly $2 billion worth of cryptocurrencies.
@Cardanians_io stated that unlike FTX and Binance, Cardano is a decentralized network that does not have a CEO. Therefore, "There is no one to arrest."
SBF is under arrest. Chances are CZ will also be arrested as @Binance is accused of money laundering. This bear market may destroy the 2 largest exchanges in the #blockchain industry.#Cardano has no CEO. The network is decentralized and there is no one to arrest.— Cardanians 🚀 stake w CRDN3 (@Cardanians_io) December 13, 2022
BNB under selling pressure, price plunges
Prominent investor Mike Alfred has commented on the recent outflow of crypto from Binance. He tweeted that traders are selling their BNB and BUSD, converting them into Bitcoin and Ethereum or any other coin that can be withdrawn from Binance quickly.
Alfred pointed out that this is the first time in several years that there is a "real market driven price action" for the native coins of the Binance exchange.
He also tweeted that BNB, Binance's coin, is plunging as selling pressure on it increases.
BNB $262. Dumping harder. Sell pressure up. I assume CZ is selling as well to meet redemption requests. Hot wallet balances drained.— Mike Alfred (@mikealfred) December 13, 2022
Since the evening of Dec. 12, the BNB price dropped from the $284 level, reaching a $257.9 low. By now, the asset has managed to recover some of its losses and is trading at $269.2, as per CoinMarketCap.
BNB so far holds the fourth position on the top ten list here.