HUGE WITHDRAWALS ROCK, BINANCE!

Nearly, 4.9 Billion Dogecoins were withdrawn from Binance on 16 December, 2024 valued around $2.03 Billion. "Whales" are large holders of Cryptocurrency. No one knows exactly why such sums were transfered to external wallets. Sometimes, huge withdrawals are a sign of a holder's decision to store assets in a better, secure or maybe, just to engage in some transaction with a different Exchange. In the past, huge withdrawals from Exchanges have been associated with numerous factors, such as rumours. Binance experienced the same in December, 2022. A huge outflow to the tune of $5 Billion in just two days due to rumours of criminal charges against Binance triggered the same. These large withdrawals from Binance by one Whale could lead to both immediate and long-term consequences of the Exchange. Should large withdrawals continue, the Exchange could be strained, unless deposits override withdrawals. Exchanges depend on enough Cash flow to sustain trading. In the absence of fluidity, orders or payouts could delay the process and demish user confidence on the Platform. Fear, Uncertainty and Doubt (FUD) by users could lead to speculation on the Exchange liquidity. If users decided to move to other platforms, Binance's position as a number one Cryptocurrency Exchange could reduce its market share. The same huge-scale withdrawals could draw the attention from Regulators who could commence inquiries into the cause of withdrawals with a view to some illicit or money laundering suspicions. Should these withdrawals be associated to fluidity, Binance could give its rivals advantage to aquire market share. Should rivals capitalise on Binance's deficiencies, prices could fall due to panic selling that could engulf the entire Cryptocurrency industry. The first transfer out of Binance was over $2 Billion in Fiat equivalent, while the second was nearly $2 Billion of XRP. Some people say, the same was an in-house Binance transfer!