> ## Content Index > Fetch the complete content index at: https://www.metatalks.ai/llms.txt > Use this file to discover other available public pages before exploring further. # Utter Binance FUD or Reasonable Reminder? - URL: https://www.metatalks.ai/utter-binance-fud-or-reasonable-reminder/ - Published: 2023-05-08T21:44:00.000Z - Updated: 2023-05-09T21:44:42.000Z - Author: Katelyn Chow - Tags: binance, #helen, fud Amid news of the U.S. Justice Department's [investigation of possible Russian sanctions violations](https://www.coindesk.com/policy/2023/05/06/us-justice-department-investigating-binance-for-russia-related-sanctions-violations-bloomberg/?ref=metatalks.ai) and after many people were alarmed by the [record outflow](https://cryptopotato.com/binance-wallets-see-huge-spikes-in-bitcoin-outflows-suspends-btc-transactions/?ref=metatalks.ai) of BTC from the exchange wallets, Binance [suspended](https://decrypt.co/139228/binance-pauses-bitcoin-withdrawals-blames-network-congestion?ref=metatalks.ai) BTC's withdrawal [twice this weekend](https://cointelegraph.com/news/binance-halts-bitcoin-withdrawals-for-the-second-time-in-12-hours?ref=metatalks.ai), immediately nuking the bitcoin price and the broader crypto market's value. Now let's deal with it step by step, record-breaking outflows first. ![](https://storage.ghost.io/c/ef/d4/efd46b24-40c6-4ee1-b2e7-34720b3b26fd/content/images/2023/05/data-src-image-82c0402e-78c6-4c60-a65a-b6ab09366a98.png) Typically, a crypto Twitter might interpret this as a bullish sign (coins moving from an exchange, hence they're probably not planning to be sold anytime soon), but not against this news landscape, seemingly. > Billions of dollars have been withdrawn from Binance while the price of Bitcoin continues to plummet. > > This is a big red flag. This sort of behavior happens during insolvency / legal risk. > > To top it all off, withdrawals have stopped TWICE. > > Play it safe and self-custody for now. [pic.twitter.com/bcZ4MWfH7X](https://t.co/bcZ4MWfH7X?ref=metatalks.ai) > > — The Wolf (@WolfOfPoloniex) [May 8, 2023](https://twitter.com/WolfOfPoloniex/status/1655389692660154368?ref%5Fsrc=twsrc%5Etfw&ref=metatalks.ai) People wondered whether whales or insiders were "jumping ship," but it's unlikely to be true. > According to further on-chain inspection, it is likely that the Binance cold wallet was internally adjusted to a new address, and the new address did not transfer out after receiving funds. > > — Wu Blockchain (@WuBlockchain) [May 7, 2023](https://twitter.com/WuBlockchain/status/1655246775316545542?ref%5Fsrc=twsrc%5Etfw&ref=metatalks.ai) And later on, [@binance](https://twitter.com/binance?ref=metatalks.ai) confirmed a version of moving funds between the exchange's own wallets: > We’re aware that some data are showing a large volume of outflows from [#Binance](https://twitter.com/hashtag/Binance?src=hash&ref%5Fsrc=twsrc%5Etfw&ref=metatalks.ai). > > This ‘outflow’ are actually movements between Binance hot and cold wallets due to the BTC address adjustments. > > — Binance (@binance) [May 8, 2023](https://twitter.com/binance/status/1655430207023747074?ref%5Fsrc=twsrc%5Etfw&ref=metatalks.ai) As for the [suspension of BTC withdrawals](https://twitter.com/binance/status/1655380303383261185?ref=metatalks.ai) ([twice a day](https://cointelegraph.com/news/binance-halts-bitcoin-withdrawals-for-the-second-time-in-12-hours?ref=metatalks.ai), which also matters), [CZ](https://twitter.com/cz%5Fbinance?ref=metatalks.ai) attributed it to Bitcoin network congestion caused by the ongoing [Ordinals](https://decrypt.co/139259/bitcoin-ddos-ordinals-inscriptions-attack?ref=metatalks.ai) and [BRC-20 tokens](https://thebitcoinmanual.com/articles/brc-20-tokens/?ref=metatalks.ai) craze: ![](https://storage.ghost.io/c/ef/d4/efd46b24-40c6-4ee1-b2e7-34720b3b26fd/content/images/2023/05/data-src-image-ed8e2465-e49c-43ce-8f47-fbc8b9fb94b3.png) …And even tried to present it as a “bull market issue“: ![](https://storage.ghost.io/c/ef/d4/efd46b24-40c6-4ee1-b2e7-34720b3b26fd/content/images/2023/05/data-src-image-531d0f49-63cd-4c65-9ced-793c543cc566.png) As of Sunday afternoon, the total number of unconfirmed Bitcoin transactions in the network's mempool was around 395,000, according to [mempool.space](https://mempool.space/?ref=metatalks.ai). This is a significant increase from the 56,500 recorded on April 26th, according to [Blockchain.com](https://www.blockchain.com/explorer/charts/mempool-count'?ref=metatalks.ai). Of course, this cannot but affect the size of transaction fees, previously observed only at the peak of the hype during bull markets. ![](https://storage.ghost.io/c/ef/d4/efd46b24-40c6-4ee1-b2e7-34720b3b26fd/content/images/2023/05/data-src-image-9b191a70-0e97-4006-ae31-5ec5a6e7ba96.png) ![](https://storage.ghost.io/c/ef/d4/efd46b24-40c6-4ee1-b2e7-34720b3b26fd/content/images/2023/05/data-src-image-d6b1ab06-e7fe-442c-bb70-69169effcb48.png) And it feels wild enough that the Bitcoin community seems seriously concerned about [BRC-20](https://thebitcoinmanual.com/articles/the-dangers-of-brc-20-tokens/?ref=metatalks.ai) as a [form of DoS attack](https://decrypt.co/139259/bitcoin-ddos-ordinals-inscriptions-attack?ref=metatalks.ai) on the network. On [resuming](https://www.coindesk.com/business/2023/05/08/binance-pauses-bitcoin-withdrawals-for-the-second-time-in-24-hours/?utm%5Fmedium=referral&utm%5Fsource=rss&utm%5Fcampaign=headlines) withdrawals after the second pause on Sunday, Binance [called it](https://twitter.com/binance/status/1655419627093241856?ref=metatalks.ai) a "learning opportunity" and [noted](https://twitter.com/binance/status/1655419624962527233?ref=metatalks.ai) that it'd adjust withdrawals fees and work on enabling BTC Lightning Network support [in the next few months](https://decrypt.co/139276/binance-calls-bitcoin-withdrawal-pause-learning-opportunity?ref=metatalks.ai). > To prevent a similar recurrence in the future, our fees have been adjusted. We will continue to monitor on-chain activity and adjust accordingly if needed. > > Our team has also been working on enabling BTC Lightning Network withdrawals, which will help in such situations. > > — Binance (@binance) [May 8, 2023](https://twitter.com/binance/status/1655419624962527233?ref%5Fsrc=twsrc%5Etfw&ref=metatalks.ai) Now, can we conclude that Binance is completely fine, the FUD surrounding it is baseless, and there's no reason to be worried? I don't think so, and Swan Bitcoin recently published a comprehensive long-read about that: "[Binance: Raising Eyebrows Since 2017](https://www.swanbitcoin.com/binance-raising-eyebrows-since-2017/?ref=metatalks.ai)" (I highly recommend reading it). Just this weekend's events should probably be viewed more as a reminder of the associated risks rather than a genuine reason for panic. And the advice from the tweet above about "playing it safe and self-custody" is always relevant. But maybe it's especially relevant these days because now the atmosphere in the market feels quite the opposite of what it was in December. > The risk of downside is significantly higher now than it was 6 months ago > > Now that memecoins are pumping and grifters are out there scamming everyone they can there are less and less reasons to go up > > Just need to find a reason to nuke > > — DonAlt (@CryptoDonAlt) [May 8, 2023](https://twitter.com/CryptoDonAlt/status/1655543223215968261?ref%5Fsrc=twsrc%5Etfw&ref=metatalks.ai)