Binance is taking measures to prevent further media attacks

Binance is taking measures to prevent further media attacks

Binance dispels concerns about its viability. The BNB futures and options markets are relatively quiet. Despite the improvement in the status of investor deposits, on-chain data reveals losses for those who held onto them.

Binance has responded to criticisms leveled at it after weeks of accusations and counter-accusations, hoping to end the skepticism plaguing the cryptocurrency exchange. Binance, which calls itself a “transparency and openness advocate,” wrote a seven-part blog post explaining why it felt compelled to respond publicly to the false information circulating in the cryptocurrency community.

In the wake of FTX's demise, Binance had been experiencing widespread difficulties. The U.S. Department of Justice (DOJ) contemplated going all the way with criminal charges. Mazars, an auditing firm, has recently withdrawn from investigating the financial stability of the exchange. Binance addressed investor and ecosystem concerns by stating emphatically that it had no liquidity issues despite the temporary halt in USDC withdrawals. The market reported that its reserves were in excellent shape.

Binance stated that the audit of encrypted companies like theirs was novel in light of the Mazars controversy. There was, therefore, no basis for the rumors that the “big four” accounting firms would reject the audit process. The blog post hinted at the reluctance to clarify the DOJ prosecution fully. It did, however, say that it had complied with regulations in several countries and planned to address the issue later. According to the article,

"We are currently unable to respond to any controversial judicial discussions, but in the face of unilateral allegations from the media, we also hope to clarify and emphasize the following facts that have been ignored by the public for a long time."

However, Binance Coin [BNB] retraced after initially jumping on the explanation and subsequent positive news. The price may have remained unchanged, but the volume of trades over a day rose by 18.36%. At the time of writing, the BNB volume was $546.13 million, as reported by on-chain data service Santiment. This scenario reflected investors trying to get in on BNB's price rise. Traders' behavior in the derivatives market diverged from the market's overall pattern. Indicating a retracement in futures and options contract positions, Santiment data showed a massive dump in funding rate on the exchange at -0.007%.

Binance is taking measures to prevent further media attacks
Source: Santiment

On-chain data referred to BNB's active addresses and demonstrated the platform's prowess at attracting and retaining users. This is because, on December 21, there was an increase in the number of addresses that remained active for at least seven days, although that number had decreased to 23,600 as of this writing. In light of the billions of dollars withdrawn from the exchange, Binance was working to restore user confidence. Market Value to Realized Value (MVRV) over the past 30 days shows that BNB has steadfastly kept investors in the red. An MVRV of -13.27% indicates an undervalued situation. However, those who purchased at a higher price than the current value were signaled to experience unfavorable outcomes.

Binance is taking measures to prevent further media attacks
Source: Santiment

Disclaimer: Nothing on this site should be construed as a financial investment recommendation. It’s important to understand that investing is a high-risk activity. Investments expose money to potential loss.



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