The value of assets lost by cryptocurrency exchange Binance has reached $12 billion in less than two months, as investors have withdrawn their cryptocurrencies in recent weeks.
According to ArabiaNet, the world's largest cryptocurrency exchange is still struggling to hold on to assets, following the collapse of rival FTX exchange.
Despite CEO Changping Zhao's assertion that the situation has stabilized, outflows are accelerating, with customers withdrawing a net $360 million last Friday, according to crypto data firm Defillama.
On December 13, Nansen, a separate crypto data firm, revealed that Binance had lost $3 billion in assets over the previous week, which represented 4% of the company's total assets at the time.
A Forbes investigation revealed that Binance has lost 15% of its assets since Zhao posted a tweet on Twitter the same day in which he downplayed the Nansen report's withdrawals.
In less than two months, the departure operations expanded, which amounted to about a quarter of the company's assets, and Forbes estimated them at $ 12 billion.
Investors' distrust is more evident in the performance of Binance Coin, which is known as (BNB) and Binance USD (BUSD), which are the two symbols that bear the name of the exchange.
BNB has lost about 29% of its value in the past two months.
Forbes estimates that the cryptocurrency giant holds about 29 million of its coins on Binance, 51% less than what the exchange disclosed on November 10.
While net assets have fallen by 24% since November, investors in well-known tokens such as matic, ape and gala have reduced their assets on the exchange by 40-50%.
Although it remains the largest cryptocurrency exchange by volume, Binance has not been hurt by the nearly year-old decline in digital assets.
Its BNB token is down nearly 37% in the 12-month period, according to Nomics, and the exchange decided to stop charging fees for spot Bitcoin trading, as the company loses about $3 billion a year in revenue, according to Forbes estimates.
The total value of cryptocurrencies showed an even bigger drop, dropping 56% over the past year, to $848.7 billion, according to CoinMarketCap data.
Zhao himself contributed to the demise of FTX in November when he announced on Twitter that he was planning to sell his holdings of rival exchange tokens, valued at about $580 million.
He followed that up with a quickly rescinded bailout offer, claiming that FTX's problems were beyond our control or ability to help, meaning that an initial look at the company's books revealed a more dire position than previously thought.
