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Hello this is Matt on the moon Lambo Channel a lot of money flowed out of Binance yesterday after the news broke That uh CZ the founder uh CEO of binance Uh was pleading guilty to charges Including money laundering uh and and Binance ultimately agreeing to pay a Fine of $4.3 billion do that obviously Shook the market undoubtedly pretty much All of you have heard of that news by Now but it did result on a little touch Of a bank run a little touch of it $1 Billion in net Outflows and since then a fairb has Flown back flown back in which is good But this speaks to the degree of which Uh Customers uh not exactly confident in Binance after this unfolded now the Reason I want to talk about this is Because if it's were the case if it were The case that there is something Seriously wrong with the long-term Viability of binance this is something That could cause a dramatic impact in in Crypto prices broadly speaking including Xrp And this has been broadly discussed Especially on social media I've I've Seen all sorts of perspectives on this I Want to share with you mine because There's a there's a lot of moving parts To this and look I I'll just say this I'm not saying binance is insolvent
Because I don't see proof of that but If that's the case there will be a major Capitulation event like was seen with The collapse of FTX and and on top of that by the way Binance's admission uh that that many of Their transactions were not lawful that Will stop meaning binance will Experience a reduction in business Profitability because they're not going To be engaging in certain transactions Anymore we we just don't know how Extensive that will be in terms of the Impact on their Business but it's not going to be Nothing though it's going to be Something we just don't know because It's not publicly available information I don't know if behind the scenes people At binance are scrambling but trying to Show a pretty cool face looking forward Here but there are a lot of people Freaking out about this uh so I'm going To share with you my take on this as Well as uh some some things to consider But uh before going further I do want to Be clear I do not have a financial Background of any kind I am not offering Financial advice and you definitely Should not by yourself anything because Of anything I say or right I'm just an Enthusiast who enjoys making YouTube Videos about crypto related topics but Just as a hobby and just for fun and by
The way just as a friendly reminder not Not sure if yall forgot about this one Because it's been almost a year at this Point but we had a little bit of a bank Run on binance in December of last year And that one actually was quite a bit More Substantial uh we had outflows on Binance middle of December last year of About $8.7 billion now there were once You factor in the inflows of the net 7-Day difference was $3.6 Billion so that was quite the stress Test and if they were in an FTX type of Situation which is ultimately what Prompted this to happen this past December uh well things just would have Kept on tanking to the Downside but no matter how many people Pull that money and it wasn't everybody But no matter how many people pulled out Up to that point uh not a problem Because the money was actually there Right now if it hadn't been there and See this is the thing this is I Understand why people have been talking About this and voicing concern here um I Just I there's I don't know for sure What's again there's because there's not Sufficient Transparency you know and in fact here Let me share with you some of the Specifics and then I want to share with
You some additional thoughts on this but Here's the headline from coindesk Binance processes nearly $1 billion in Net outflows as CZ resigned Crypto exchange binance saw over $950 Million in net outflows over the past 24 Hours as it was hit with criminal Charges in the United States and founder CZ agreed to step down as chief Executive officer as part of a record Settlement there are constant hourly net Outflows of Bitcoin and stable coins After the cz's recognition announcement Uh Hulk Chan Chong I'm sure but the name A head of marketing at crypto Quant uh Told coindesk and then he was quoted as Saying also however compared to the Total reserves of binance the current Volume is not yet significant at all Binance is set to continue operating as Usual and make a com a complete exit uh From the US market uh the withdrawals Are fairly above average but not usually Large on a weekly basis an analysis of Net hourly flows from the onchain data Tool tool of crypto Quant shows and so All this to point out although 1 Billion1 billion doll in outflows in a Short period of time that's not nothing Uh that's obviously a vote of no Confidence from those individuals I mean You could say that's frankly like that's Still a bank run I mean there's no hard And fast rules in terms of uh what
Constitutes a bank run it's just this Concept of a lot of people pulling the Money out of the bank and it applies to Crypto exchanges too of course it's the Same concept there's there's a lack of Confidence so funds flow out now Understand that not all banks runs are Going to be as intense as others Sometimes it's well this case I don't Know what the percentage is in terms of Users that pulled money out but enough For it to be $1 billion uh you know last Year though at the end of the year it Was over8 billion that was flowing out And so there you know there's not set Parameters on on what con it's just more Of the concept I mean it's still a bank Run here and and also just because There's a a bank run on an entity like An exchange here that doesn't mean that It puts the entity out of business Because if the funds are there you can Have a run you can have a bank run all You want and if there's solvency and the Funds are there then it's not a problem It's just people flipping out because They don't know for sure they're Concerned what if and so that is what You had here that's absolutely what you Had here but uh let me say this binance Has been voluntarily showing proof of Reserves for quite a while actually in Particular after uh the FTX collapse in November of last year but and this is
Why I wanted to talk about this this is Why I want to make this Video but refuses binance refuses to be Audited by one of the big four Accounting firms you know is is this Because there are outsized liabilities On the books or something even Worse you know earlier this year CZ was On CNBC live interview and I I I talked About this at the time whenever it was And he was very evasive it was jarring To me it was very jarring know he he was Asked why one of the big four accounting Firms hasn't audited Binance and he claimed that the big four Accounting firms don't understand crypto And that's why it hasn't happened that's It they just don't get they just don't Understand the magic on that money the Big four accounting firms with all the Geniuses there and actual Geniuses they Just don't they just don't get it they Can't audit it is that right though Well host Joe one of the host on on the On this this live broadcast Joe kernin I Believe is his Name he he immediately pointed out that Coinbase was audited by one of the big Four and CZ had that deer in the Headlights look I'm like oh this isn't Good I was like oh man this is not good He just just not knowing what to say He's like ah I don't got caught because You know that's the he's like oh how can
I you know spin a web to get out of this Like what what do I do what do I do what Do I do and he never did have an answer That he just he's just so evasive and Then uh another host I believe her name Is Becky Quick then she she then asked CZ if Binance has enough money to pay a fine Because there were legal concerns even Back then like we all knew something was Coming here right but he was asked by Becky Quick do you have enough money to Fay to Pay a fine of billions of Dollars and he he just he refused to Answer that as well saying that he just Said that they're in a strong financial Position you know the answer should have Been yes we can afford Them so that in Conjunction with with uh you know they Refu so they'll show they'll show the Proof of reserves but we're not going to Show you the full books we're not going To show you our liabilities just take Our word just trust me bro just trust me Bro Right and so Becky Qui ultimately asked Him a few times might have been three Times you know could you afford such a Fine and the the number being bandied About at the time I think it may have Been a little over2 Billion and and he just he would not
Answer it he's just saying these vague Things like we're in a financial they Strong position well then say yes if the Answer's yes duh but the answer wasn't Now that's telling and Becky Qui got so Frustrated with him I've never seen her Respond like this before it was the most Deep and int H eye roll after the third Try or whatever it was uh just rolling Her eyes and then she just gave up Because CZ clearly was refusing to Cooperate here so this all in Conjunction with obviously to some Degree at least a a reduction in Business U and just be clear I'm not Saying that I think that they're Insolvent I'm not saying that they're Using customer funds I'm making no such Assertions I have no proof what I'm Noting here and this is just a fact we As the public don't know what their Actual financial position here is we Know that CZ has been evasive and we Know that he pled guilty to Serious Crimes including a felony we do know That and we also know that if there is a Problem and there's stuff being kept From us it's going to impact our netw Worth it's going to impact when there's Going to be runs in crypto including Bitcoin and xrp so on and so forth so it Matters to all of us in the world of Crypto that's why I wanted to talk about This that's why and these are the things
That I think are worth considering here Just in a nutshell So hopefully ultimately it's a big Nothing all I can say is I literally Don't know and neither do you none of us Do that's the point that's why I wanted To highlight this so there's some people Ready to just say hey green light let's Give this pass everything's find on I'm Like well maybe you're right but how the Why do you have that Confidence am I supposed to have that Confidence but I don't have the data you Don't have the data why do you have the Confidence and I don't you know are you Sure you're not getting ahead of Yourself Here it's just weird right that's all I'm saying Here So hopefully everything's fine but these Are just some additional things to Consider that's pretty much it now you Guys let me know what you think here and Again just to be clear just because I'm Questioning this stuff that's just what A rational person should be doing in my Opinion but oh I said that weird my my Op but it does not mean that I think That there is something wrong I'm just Saying isn't it weird that we don't know And that they're not forthcoming it's Been evasive and this guy pled guilty to A fon to a felon charge felony
Charge yes it Is I'm not a financial adviser you Should not buy or sell anything because Of anything I say or right that would be A very very very bad idea until next Time to the Moon Lambo
