Binance, one of the largest centralized crypto exchanges, recorded a massive influx as traders took advantage of the Monday crypto market crash. DefiLlama CEX Transparency Metrics data shows that the exchange recorded about $1.27 billion in inflows in 24 hours.
Binance’s CEO Richard Teng tweeted about the inflows, commenting that the amount was one of the highest the exchange recorded this year. Richard also mentioned that Binance recorded one of the highest trading volumes on the Binance year-to-date. According to CoinMarketCap data, the exchange registered over $21 billion in trading volumes in 24 hours.
Other top centralized exchanges also registered notable inflows in the past 24 hours. OKX, Bitfinex, Bybit, Crypto.com, Kucoin, and Bitstamp had $97.68m, $9.27m, $301.49m, $107.88m, $52.27m, and $71.25m in inflows in the past 24 hours, respectively. However, Robinhood recorded major outflows due to its halted trading, which significantly affected investors.
Binance has had rocky months since the end of last year when its founder and former CEO Changpeng Zhao pleaded guilty to violating the Bank Secrecy Act. However, the exchange still managed to record over $3 billion in net inflows in January, two months after the DOJ charged CZ.
Binance CEO hints at investor confidence
Amid the macroeconomic climate and yesterday's market downturn, #Binance recorded a net inflow of US$1.2 billion in the past 24 hours, according to @DefiLlama's CEX Transparency metrics.
This marks one of the highest net inflow days of 2024, indicating strong investor…
— Richard Teng (@_RichardTeng) August 6, 2024
Richard Teng tweeted that increased inflows in Binance could indicate strong investor confidence in crypto markets. Historical data suggests that crypto markets bounce back after significant plunges.
Crypto analyst Nilesh Rohilla tweeted that after significant market uncertainty in 2017, the markets bounced back after a few weeks. Nilesh also mentioned that the crypto market bounced back after 3 months during the COVID-19 pandemic.
Another crypto investor reiterated that historically, crypto prices tend to recover once they hit a bottom range. The investor speculated whether the crypto market would bounce back after Black Monday.
“Historically, touching the 0.75 line in the Mayer Multiple has marked a bottom range, leading to strong recoveries (seen during the COVID crash and FTX crash).”
Since yesterday, crypto prices have recovered significantly, with BTC’s price reaching above $57,000, up 4% within the past 24 hours. Altcoins have also recovered, with Ethereum up by 1.68%, Solana by 9.35%, XRP by 3.53%, and DOGE by 4.57% in the past 24 hours.
Binance faces significant tax charges in India despite inflows
India’s Directorate General of GST Intelligence’s Ahmedabad zonal unit demanded $86 million in unpaid Goods and Services Tax from the exchange. The unit issued the exchange a show cause notice, the first the authority has ever issued to a crypto exchange.
⚡ **#BREAKING**: India demands $86M from Binance in unpaid GST taxes. #Binance #GST #Crypto #India
💸 **Tax Demand**: Indian authorities have demanded 722 crore Indian rupees ($86 million) in unpaid taxes from crypto exchange Binance. #TaxDemand #UnpaidTaxes
📅 **Background**:… pic.twitter.com/Lqosxd7wwG
— Guptchar Society (@GuptcharSociety) August 7, 2024
The notice highlighted that Binance earned Rs. 4000 crore from the exchange’s transaction fees from Indian customers. Binance received the transaction fees through Nest Services Limited in Seychelles. The Indian authorities allegedly emailed Binance offices in Switzerland, Seychelles, and the Cayman Islands, which the exchange supposedly ignored.
Indian authorities banned multiple exchanges in December due to non-compliance with money laundering regulations. Binance, Huobi, Kraken, and MEXC Global were some of the exchanges affected.
