Due to the lack of liquidity, many users have sold their tokens out of fear that prices may fall even further, while others have turned to shifting their money away from exchanges.
Investors’ faith in centralized cryptocurrency exchanges has been severely damaged by FTX’s failure. The phrase “not your keys, not your coins” has once again become a popular talking point amid the subsequent financial turbulence and claims that the troubled crypto exchange used consumer funds to support reckless wagers.
Many people have paid a high price for ceding control of users’ currencies. As a result, exchange withdrawals in large quantities have now been documented.
Over 80,000 BTC have reportedly left exchange wallets in the previous day, according to CryptoQuant. According to data, investors are taking their Bitcoin out of exchanges and storing it elsewhere.
[adace-ad id=”12757″]
According to the report;
“The last few days were an absolute mess for the crypto-industry. FTX going bankrupt, searching for a bail-out and Binance might jump in to help. Time will tell if that actually materialize. In the meantime, investors have lost trust on central exchanges. This is perfectly visualized on the Exchange Reserves & Exchange Netflow.”
According to on-chain data, CryptoQuant reportedly kept track of far over 5 billion stablecoin outflows from exchanges. The numbers seem to be the highest since June 15, as the volatility brought on by the FTX controversy grew more intense.
On the other hand, from 7,016 just a week previous, the number of transactions removing stablecoins from exchanges has increased dramatically to over 57,900.
Following server disruptions, Ledger, a provider of hardware-based bitcoin wallets, encountered “a few scalability issues” as a result of the significant outflows from cryptocurrency exchanges.
