- Binance CEO addressed the misleading information regarding the exchange’s net outflow.
- Changpeng Zhao clarified that Binance’s net outflow in the last 24 hours is around $392 million.
- Zhao threw light on the negative impacts of false information on the exchange.
Changpeng Zhao, the Canadian businessman, and CEO of the troubled crypto exchange Binance, recently shared a Twitter post addressing the misleading data that has been circulating regarding the exchange’s net outflow. As per the words of Zhao, Binance’s net outflow in the last 24 hours is around $392 million.
On June 10, the Binance CEO took to Twitter to clarify the spreading fallacies and rumors that escalate the prevailing turmoil in the crypto space:
Addressing the misleading information spread by some third-party analytics platforms, Zhao asserted that the internal data of Binance revealed its net outflow in the last 24 hours. He highlighted that the analysts have calculated the outflows by measuring changes in Asset Under Management (AUM) in USD equivalent, which included the impact of crypto price falls.
However, Zhao pointed out that such an approach would not present an accurate calculation, adding that the change in AUM couldn’t be perceived as an outflow if the change in the value is an aftereffect of the change in the price.
In a succeeding tweet, Zhao posited that though there exists a decent inflow, some analysts only measure the outflows, ignoring the inflows. He quoted:
“On a sharp price movement day like today, many arbitrage traders move a lot of funds between exchanges, usually exponentially more than on normal days.”
Further, Zhao threw light on the adverse effects of the false information increasingly spread over the previous days on Binance. He stressed that Binance’s public wallets would allow any individual in the community to access the data regarding the movement of funds, making it further clear that the figure that represented the exchange’s net outflow has been deceptive.
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