Binance loses 4% of it's firm value in less than two months, which crypto exchange is still safe?

Binance CEO, Changpeng Zhao, continues to downplay reports of large outflows from the world's largest cryptocurrency exchange.

#1 A Nansen report revealed that Binance lost more than USD$3.6 billion last month

Nansen published a report on Binance on 13th December 2022, indicating that the Cryptocurrency exchange had lost around USD$3.6 billion - after seeing outflows of more than 8.7 billion, with a inflow of 5.1 billion. This amounted to around 4% of the firm's total, at the time.

Binance's current exchange reserve stands at an estimated 56 billion total, according to the exchange reserves dashboard on Nansen. The next two exchanges are OKX and Crypto.com, standing only at a reported 6.5B and 3.2B respectively according to Nansen data. This further shows Binance's current monopoly over the current crypto markets.

Nansen's dashboard allows users to see the latest financial trends in Blockchain, including the global exchanges

#2 According to Forbes, Binance's performance has also declined rapidly in other areas such as its coins

The decline of Binance Coin (BNB) is also significant, as BNB has lost 29% of it's value in the last two months alone and 37% in the last 12 months. Binance USD (BUSD) tokens have also reportedly sank by 40% in volume / number of tokens held by Binance.

Forbes also pointed out that Binance's decision to stop charging fees for spot bitcoin trading during the market downturn had also cost it almost USD$3 billion in revenues a year.

Binance crypto wallets holdings, with data generated from crypto data firms and compiled by Forbes.

#3 Binance's actual Bitcoin holdings may not be fully legitimate, according to research from multiple data firms

According to data combed from multiple Crypto firms such as CoinMarketCap and CER.LIVE, Binance's bitcoin (BTC) holdings reportedly range from $4.3 billion to $9.9 billion respectively based on the two firm's findings.

CoinMarketCap and CER.Live's BTC holdings for Binance can be found above respectively

There is also the possibility that the data companies did not manage to comb all of Binance's wallets, with CoinMarketCap listing only around 248,000 BTC held by Binance while CER.Live estimated a much higher estimate of 570,000 BTC - an alarming disparity of almost 56% between the two data firms.