The crypto market lost over $225 million in a single day as a result of Binance CEO Changpeng Zhao’s resignation following a court settlement.
Binance’s influence was felt throughout the market as one of the largest crypto exchanges by trading volume.
The majority of the losses, totaling more than $180 million, were incurred by traders who expected price increases. Binance was responsible for approximately $98 million of the losses.
The total market downturn was $226.74 million, with leading cryptocurrencies Bitcoin and Ethereum losing $50 million and $20 million, respectively. Binance’s native coin, BNB, suffered losses as well.
Dogecoin traders were not spared, with losses totaling $4.77 million in a single day. Concurrently, Binance experienced a significant increase in withdrawals, with users withdrawing a total of $566.8 million from the exchange.
Changpeng Zhao addressed his decision to resign in a tweet, acknowledging the emotional difficulty of the decision. “It was hard emotionally, but I know it’s right,” he says.
“I made mistakes for which I must accept responsibility.” It’s in the best interests of our community, Binance, and myself.”
The consequences of Zhao’s resignation and the subsequent market reactions highlight the crypto ecosystem’s interconnectedness and sensitivity to key developments within major platforms.
