Yesterday, significant flows of Bitcoin (BTC) have been observed moving from Binance to Coinbase Pro. CryptoQuant.com reported a noteworthy transfer of assets after 16:00 yesterday, indicating a decrease of approximately 5,000 BTC in Binance’s reserves and a simultaneous increase of around 12,000 BTC in Coinbase Pro’s holdings.
The timing of this movement is particularly interesting as the approval of the Bitcoin ETF Spot seems imminent. Industry experts suggest that sidelining Binance, a major player in the crypto market, is crucial for new entrants aiming to establish themselves. Coinbase Pro, known for its regulatory compliance and lobbying efforts, has emerged as the leading U.S. exchange, with a significant portion of its volume attributed to institutional players.
Understanding the actions of institutional players is becoming increasingly vital, given that the influx of funds into the cryptocurrency market often originates from these entities. While Coinbase is making strides in establishing itself as a trustworthy platform adhering to regulations, Binance remains the global crypto market leader, boasting a trading volume six times higher than Coinbase in the last 24 hours.
Binance Sees $1 Billion Withdrawal Surge
The recent announcement of the leading exchange paying a substantial $4.3 billion in fines and its CEO, Changpeng Zhao, stepping down after pleading guilty to criminal charges in the U.S. has shaken the crypto community. Coinbase, a direct competitor of Binance, sees this development as both a teachable moment and validation of its own approach to compliance.
Brian Armstrong, CEO of Coinbase, shared his perspective on the matter, stating:
Since the founding of Coinbase back in 2012, we have taken a long-term view. I knew we needed to embrace compliance to become a generational company that stood the test of time. We got the licenses, hired the compliance and legal teams, and made it clear our brand was about trust with our customers and following the rules.”
As a consequence of this legal troubles, users have reportedly pulled over $1 billion from the exchange in the last 24 hours, according to data from Nansen_ai. The analytics firm allows users to monitor token holdings (proof of reserves) on Binance and other centralized exchanges (CEXs) in real time. The data indicates a significant drop of -$1.7 billion in Binance’s asset worth from the previous day across major chains such as Bitcoin, Ethereum, Solana, TRON, and more.
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