- Binance CEO addresses inaccurate data on net outflow via Twitter.
- Third-party analytics platforms criticized for erroneous claims.
- Zhao emphasizes transparency and impact of false information on Binance.
Changpeng Zhao, the esteemed Canadian entrepreneur, and CEO of Binance, a crypto exchange currently facing challenges, took to Twitter to address the issue of inaccurate data being circulated about the company’s net outflow. Zhao clarified that Binance’s net outflow in the past 24 hours amounted to approximately $392 million. His statement serves to provide clarity and transparency to concerned stakeholders.
On the 10th of June, the CEO of Binance utilized the power of Twitter to dispel the misconceptions and rumors that have been fueling the current unrest in the cryptocurrency realm. Professionally, he sought to set the record straight and provide clarity amidst the chaos.
Zhao refuted the erroneous claims propagated by certain third-party analytics platforms, citing Binance’s internal data that unequivocally demonstrated a net outflow within 24 hours. He emphasized that these analysts had erroneously calculated outflows by factoring in fluctuations in Asset Under Management (AUM) in USD, which were influenced by the recent dips in crypto prices.
Zhao astutely noted that this methodology would yield a vague calculation. He further elucidated that a shift in assets under management cannot be classified as an outflow if the alteration in value is merely a consequence of a fluctuation in price.
In a subsequent tweet, Zhao proposed that while there is a noteworthy influx, certain analysts solely focus on the outflows, disregarding the inflows. He cited:
“On a sharp price movement day like today, many arbitrage traders move a lot of funds between exchanges, usually exponentially more than on normal days.”
Additionally, Zhao shed light on the detrimental impact of the proliferation of false information recently regarding Binance. He emphasized that Binance’s transparent public wallets enable community members to access data on fund movements, clarifying that the net outflow figure attributed to the exchange was misleading.
