1. PixelPlaygroundHome
  2. Blockchain Briefs

The Coin On Saga: Why Are Users Withdrawing Cryptocurrency From The Exchange?

• Blockchain Briefs • 94 views

According to reports, after the news that the US regulatory authority sued Coin On and its founder Zhao Changpeng came out, Coin On users withdrew a large amount of cryptocurrency

The Coin On Saga: Why Are Users Withdrawing Cryptocurrency From The Exchange?

According to reports, after the news that the US regulatory authority sued Coin On and its founder Zhao Changpeng came out, Coin On users withdrew a large amount of cryptocurrency from the exchange on Monday. According to data from the blockchain analysis company Nansen, in the past 24 hours, the net outflow of Coin on Ethereum has reached $400 million. By comparison, the net flow over the past seven days was $2 billion. As of the time of press release, canny traders who are considered “smart money” operators by Nansen have also withdrawn $9 million from Binance in the past 24 hours.

Data on the chain shows that the money security depositors fled after the CFTC prosecution

As per reports, Coin On and its founder Zhao Changpeng have landed in hot water with the US regulatory authority which has resulted in a large number of Coin On users withdrawing cryptocurrency from the exchange. Recently, blockchain analysis company Nansen highlighted that there was a net outflow of $400 million in the past 24 hours from Coin On Ethereum. This article will explain why Coin On users are withdrawing their cryptocurrency and what it could mean for the future of the exchange.

What led to the US regulatory authority suing Coin On and Zhao Changpeng?

To understand why Coin On users are withdrawing their cryptocurrency, it is crucial to know what led the US regulatory authority to sue Coin On and its founder, Zhao Changpeng. The authorities allege that Coin On offered and sold unregistered securities in the form of digital tokens, which is a violation of federal securities laws. The authorities have also accused Zhao Changpeng of personally promoting these unregistered securities offering through various means.

What is the impact of the news on Coin On users?

To understand the impact of the news on Coin On users, it is essential to understand the repercussions of such an event. Withdrawing cryptocurrency from an exchange is not an easy task, and users typically do so when they are worried about the safety of their assets. The news of the lawsuit has raised concerns amongst Coin On users about the safety and legitimacy of the exchange. Moreover, rumors that the exchange may shut down have been circulating on social media, further amplifying the panic amongst the users.

How much cryptocurrency has been withdrawn from Coin On and Binance so far?

As stated earlier, the net outflow of Coin On Ethereum was $400 million in the past 24 hours, which is a significant amount considering the net flow over the past seven days was $2 billion. Trading data also indicates that over $400 million worth of cryptocurrency was withdrawn from Coin On and Binance in a few hours. Canny traders who are considered “smart money” operators by Nansen have already withdrawn $9 million from Binance in the past 24 hours, adding to the chaos in the cryptocurrency market.

What does the future hold for Coin On and its users?

Coin On’s struggle has raised concerns over the future of the exchange. Despite the fact that the exchange’s user commitment is still strong, and its spot volume exceeds $110 billion as per Coinmarketcap, the exchange’s reputation has been affected, and it is unclear how many users will continue trading on the platform. Coin On, on its part, has denied the allegations made by the US regulatory authority and has vowed to fight against them. However, it remains to be seen how successful they will be in resolving the issue and rebuilding user trust.

Conclusion

The recent events surrounding Coin On and its founder, Zhao Changpeng, have resulted in a lot of cryptocurrency being withdrawn from the exchange. The US regulatory authority’s lawsuit and the rumors of the potential closure of the exchange have fueled panic among users, leading to the significant outflow of cryptocurrency. The future of Coin On remains uncertain, and it is unclear what this event means for the cryptocurrency industry as a whole.

FAQs:

1. What does the US regulatory authority allege against Coin On and Zhao Changpeng?
The US regulatory authority alleges that Coin On offered and sold unregistered securities in the form of digital tokens, which is a violation of federal securities laws, and Zhao Changpeng personally promoted these unregistered securities offering.

2. Why are Coin On users withdrawing their cryptocurrency?
Coin On users are withdrawing their cryptocurrency because of the uncertainty surrounding the exchange’s future and rumors that it might shut down.
3. Can Coin On bounce back from the episode?
Coin On has denied the allegations made by the US regulatory authority and has vowed to fight against them. However, it remains to be seen how successful they will be in resolving the issue and rebuilding user trust.
**Keywords:** Coin On, Zhao Changpeng, US regulator, cryptocurrency, blockchain, digital tokens, securities, outflow, Binance.
*Note: The information presented in this article is for educational purposes only and should not be considered financial advice.*

This article and pictures are from the Internet and do not represent Fpips's position. If you infringe, please contact us to delete:https://www.fpips.com/11025/

It is strongly recommended that you study, review, analyze and verify the content independently, use the relevant data and content carefully, and bear all risks arising therefrom.

Like (0)
Previous 03/28/2023 19:06
Next 03/28/2023 19:58

Recommended articles