The US Commodity Futures Trading Commission (CFTC) recently opened a lawsuit against Binance and its CEO Changpeng Zhao for violations of US derivatives trading rules. The news triggered a drop in the price of Bitcoin, which even dropped below $27.000. However, Bitcoin chain data shows no signs of FUD among traders on the cryptocurrency exchange.
Although some withdrawals have been observed, their magnitude is still relatively low. according to one analyst from CryptoQuant, the net flow of Bitcoin on Binance has recently been negative, indicating that investors have withdrawn a net number of coins from the platform. However, there has not been a huge increase in withdrawals, which indicates that Binance users seem to be calm so far.
This data is surprising, since usually when stock markets have problems, investors develop FUD and many withdrawals are seen on the exchange. The fact that withdrawals are still relatively low indicates that Binance users have confidence in the exchange.
Despite the CFTC lawsuit, Binance is still one of the world's leading cryptocurrency exchanges, and many investors are likely to continue using the platform. However, it is important for Binance to address the issues raised by the CFTC to ensure continued investor confidence.
