Recent rumors about Binance's involvement in providing Ethereum loans to Bybit have stirred discussion in the crypto community, prompting Changpeng Zhao to respond officially.
Denial of Binance's Loan Involvement
Changpeng Zhao, founder and CEO of Binance, has denied the rumors that his exchange provided Ethereum loans to Bybit. Addressing the queries circulating in the cryptocurrency sphere, Zhao noted that the transactions interpreted as loans are indeed user transactions rather than direct intervention by Binance.
Zhao's Comments and Reaction
Previously, Zhao responded to a post discussing Binance's liquidity actions towards Bybit with the phrase: 'Protect users, protect the industry.' This led to speculation that Binance was actively funding the competing exchange.
State of Cryptocurrency Flows
According to Deflama data, the recent Bybit security breach has spurred significant capital movements across major cryptocurrency exchanges. Binance recorded the highest 24-hour net inflows of $749.3 million, followed by OKX and Gate.io with $36.98 million and $50.57 million in inflows, respectively. Meanwhile, Bybit saw a significant 24-hour net outflow of $2.39 billion, with other exchanges like Bitget and Robinhood experiencing outflows of $98.24 million and $39.73 million, respectively.
Therefore, the recent developments illustrate user activity in the crypto markets, with rumors of Binance's direct involvement in financing competitors remaining unsubstantiated.
