The crypto markets displayed unwavering resilience on Tuesday, even after the U.S. Securities and Exchange Commission (SEC) filed a lawsuit against Binance and its founder, Changpeng “CZ” Zhao, for reportedly violating federal securities laws. According to data from Nansen.ai, outflows from Binance across all protocols reached a staggering $719 million within a 24-hour period. During the U.S. trading hours, net outflows hit $230 million right after the SEC announced its lawsuit.
Interestingly, Nansen data reveals that Binance’s stablecoin balance remains healthy despite the massive net outflow. At present, the exchange boasts a stablecoin balance of just over $8 billion, with a seven-day outflow of $519 million or approximately 6% of holdings. In contrast, OKX, the exchange with the second largest holdings, maintains a balance of $4 billion.
A Twitter thread by Seoul-based crypto analytics firm CryptoQuant indicates that the withdrawals are well within historical norms. Furthermore, the SEC’s complaint alleges that several other tokens – including Binance’s own BNB token, Solana (SOL), Cardano (ADA), Polygon (MATIC), Coti (COTI), Algorand blockchains (ALGO), Filecoin network (FIL), Cosmos hub (ATOM), Sandbox platform (SAND), Axie infinity (AXS), and Decentraland (MANA) – are securities.
Despite these allegations, most of the mentioned tokens continued trading in red during the Asia trading day. Metaverse majors SAND and MANA experienced the steepest declines, with SAND plummeting 13% to $0.52 and MANA dropping 11.6% to $0.45. Binance’s BNB took an 8% hit, now trading at $276.48. Meanwhile, the CoinDesk Market Index (CMI) dipped slightly, down 0.08%.
During the Asia trading session, $26 million in positions were liquidated, states CoinGlass, with long positions accounting for $16.8 million. Over the past 24 hours, total liquidations reached $296.5 million, with long positions making up the majority at $271 million.
Undoubtedly, the lawsuit’s outcome will play a crucial role in shaping the landscape of crypto markets and regulating token offerings. On one hand, this could lead to increased scrutiny and broader regulations, potentially steering away new investors. On the other hand, by clarifying the legal status of these tokens, the industry gains a greater sense of transparency, paving the way for increased adoption and stability.
As the legal drama unfolds, market participants and enthusiasts alike will be keeping a close eye on the SEC’s moves, awaiting the results of the lawsuit and any potential ripple effects this could have on the industry. Whichever way the case sways, its impact will undoubtedly leave a mark on the future of cryptocurrency markets.
Source: Coindesk
