Binance, the world’s largest crypto exchange, has shrugged off concerns about its liquidity amid a surge in investor redemptions.
On Saturday, the cryptocurrency giant told Crypto Intelligence News that its management is “not worried” about the growing withdrawals, as many investors seek self-storage or move their holdings to rival crypto platforms.
They added that Binance meets strict liquidity requirements and is 1:1 backed, with all investor assets being held in segregated accounts and wallets.
This comes hot on the heels of FTX, another rival crypto exchange, going bankrupt after experiencing a surge in withdrawals.
Binance initially considered taking over FTX, before deciding against the takeover due to concerns about the firm having mishandled customers’ funds.
The company’s native token, BNB, is currently down by around 15 percent in the last week, after falling a further six percent in the most recent 24 hours of trading.
Earlier this week, on Thursday, Binance CEO Changpeng Zhao said “We are financially OK” when asked if the exchange could handle a $2.1bn repayment – an amount they could have to pay back to FTX.
Zhao’s comments have done little to settle investors, with billions continuing to flow out of Binance and the exchange’s native token continuing to get hammered.
