CZ reacted to worries that the Binance exchange would fail because of recent withdrawals.
He asserted that in reality, less than 2% of Binance's total assets have been withdrawn over the last two days.
The possibility of a large-scale crypto withdrawal.
After the Consumer Price Index (CPI) dropped to 7.1%, cryptocurrency prices continued to rise. In this regard, the U.S. Federal Reserve is scheduled to make its decision to raise interest rates public later on Wednesday. Although the Fed's rate hike is more likely to match the market's forecast of a 0.50% increase, it is still unclear how the announcement would affect the cryptocurrency market. The decision to lower the rate hike is significant since it could be the first time the central bank does so.
The Federal Open Market Committee (FOMC) has steadily increased interest rates over the past few months to combat the US's increasing inflation. More significantly, after the FTX collapse that precipitated a crypto meltdown in November 2022, the cryptocurrency market is now exhibiting its first signs of bullish momentum.
Concerned about recent withdrawals from Binance, CZ reacted to worries that the exchange would collapse. The CEO of Binance discussed how the exchange would consolidate and grow more stronger and more dominant in the market following the collapse of FTX on a Twitter account on Wednesday. Crypto influencer Ran Neuner made the observation that Binance's reserves and trading indicate that the platform is significantly larger than its closest rival. He claimed that Binance's volume may be more than the sum of that of the majority of its rivals.
In response, CZ stated that among other factors, like as the size of the reserves, traders prefer Binance over other platforms because of its excellent security and reputation. The crypto exchange has withstood the test of time numerous times despite constant attacks from scammers. We gained your faith in this manner, he continued.
CZ said that the industry would benefit from "stress testing" like the recent withdrawals. In actuality, less than 2% of Binance's total assets have been withdrawn in the previous two days, he claimed.
