Exchanges Facing Trust Issue: More Than 200,000 BTC and 1,000,000 ETH Left CEXes

Not a good time for CEXes; CEXes is losing trust issues between their users and investors. The users and the investors started liquidating their funds from the exchange platform and migrating their funds to cold storage as well as to hot wallets.  

The event is called a big migration of cryptocurrencies off of the exchange. 

FTX fallout has become the most controversial topic in the crypto world. FTX collapse has created a bigger issue for all other exchanges as users and investor is finding a solution to protect their holding, 

Users have lost their trust in exchanges after this incident. Bitcoin, Ethereum and other top-tier cryptocurrencies are uncommonly existing centralized trading platforms in higher volume.

On-chain data revealed more than 1 million Ether and nearly 200,000 Bitcoin worth $3.4 billion laid off from several centralized cryptocurrency trading platforms. According to the data, CEXes users departed the most since 2021. Such incidents elaborate on lots of things. 

And as per the declining trend and the selling pressure on the market, it seems to be correlated with the declining volume of assets. 

Suppose this incident and the market turmoil continue for a long time, so volatility and the selling pressure will decrease, as seen in November. The sudden withdrawals in unexpected numbers can bring rough times in the crypto world.

The Conclusion —

The whole incident comes to light in the crypto market because of the turmoil. Binance – FTX saga makes crypto users lose their faith in the exchanges. Because of the FTX, other exchanges are facing trust issues. $ 3.4 billion has departed from the trading platform, and exchanges have increased the trouble for the particular cryptocurrency exchange platform.

According to the previous news, Nansen reports that 1.1 million ETH worth $1.3 billion has been withdrawn from the exchanges since November 12.