Binance built an empire on dominance, liquidity, and trust. But every empire faces its storm. Right now, the king of crypto is under fire. Crypto.com has even filed a case against Binance. And to remind you of what happened, October 10th saw a $40 billion liquidation.
Regulators are circling, rivals uniting, and the community split between fear and faith. Yet beneath the chaos, there’s a twist most people haven’t noticed. A twist that could flip the entire narrative. What if this isn’t the downfall of Binance … but its reset? Let’s uncover the moves happening in the shadows. And why this storm might crown a new king in crypto.
Exchange Outflows and Reserve and Liquidity Drop
Currently, there are various FUD reports surrounding Binance. FUD stands for fear, uncertainty, and doubt. It refers to the tactic of spreading negative or misleading information. Thus, creating panic among investors and driving down an asset’s price. So, let’s look at the various FUDs currently floating around Binance.
Exchange Outflows
After the recent price crash in the crypto sector, exchanges saw significant outflows. CoinGlass claimed on X that Binance saw the biggest outflow, with $21.75 billion. This post attracted quite some attention. It implies a liquidity crisis or capital flight.
Over the past few days, centralized exchanges have seen significant asset outflows, with #Binance experiencing the largest outflow — $21.75 billion over the past seven days.https://t.co/HW9ViO6mPV pic.twitter.com/8ArclaL8sB
— CoinGlass (@coinglass_com) October 15, 2025
However, other X posts showed DeFiLlama numbers that show a $4.2 billion inflow. Binance called much of the narrative a “misinformation / FUD campaign.” Yi He shot back at this with a post on X that she has deleted since. She’s a Binance co-founder and Chief Customer Service Officer. Here’s a picture of the original post.
Binance inflows are up 4.2B while other exchanges are down
Talk is cheap… pic.twitter.com/NbyIUwuO2k
— Alex (@ShiLLin_ViLLian) October 15, 2025
“If you are crypto KOL and someone offers you less than $20K to publish FUD about Binance, consider it an insult,” He posted. “That’s their standard rate for others. If we can help everyone earn some cash by posting a single message worth $20K to criticize Binance, we’d be honored.”
My team and I found tweets from KOLs saying they were offered cash to spread anti-Binance messages. However, we did not find any verified email headers or payment trails publicly available. That means the claim is plausible, given crypto’s history, but currently unproven. If any influencers reading this want to anonymously share headers with us, we’ll verify and publish the findings.
I have suddenly received a lot of emails from various exchanges the past 24 hours honestly. https://t.co/2W9jLEA5yB
— Jason Appleton (Crypto Crow) (@jasonappleton) October 15, 2025
Reserve and Liquidity Drop
Julio Moreno, had something to say about Binance’s reserves decline. He’s a senior analyst at CryptoQuant. He said that reserves had taken a hit. However, it was also nothing out of the ordinary. Binance’s reserves were down by $8 billion in the last week.
Some chat about Binance’s reserves decline.
Reserves have taken a hit, but nothing out of the ordinary.For BTC, ETH, USDT and USDC, reserves are down by about $8 billion in the last seven days, which is comparable to other periods in the current cycle.
Just a few weeks ago,… pic.twitter.com/9wdSZTrCVK
— Julio Moreno (@jjcmoreno) October 16, 2025
However, he also states that this is comparable to other periods in the current cycle. Furthermore, he states that reserves grew by almost $14 billion, only a few weeks ago. This implies that the drawdown may be a correction rather than collapse. So, that FUD seems to be a nothingburger.
Exchange Listing & Token Demand Controversies
Questions have resurfaced. Did Binance demand “tokens for listing” from projects? If so, would this be a conflict of interest? This started with an X post by Limitless Labs CEO CJ Hetherington. He explains what Binance wants for a token listing. That’s quite a list. He goes on to compare this with Coinbase. They simply state to build something meaningful on Base.
offer from @binance:
> 1% airdrop on day 1, alpha listing
> 3% further airdrops in 6 months
> 1% for “marketing” at Binance full discretion
> provide 100% of TVL for token pool on Pancake Swap ($1M+)
> $250k security deposit
> 3% reserved for BNB HODLer programme
> $200k…— CJ (@cjhtech) October 14, 2025
This causes a huge debate. The Binance helpdesk posted on X that they don’t profit from the token listings. To make things worse, they are threatened with legal action. However, shortly after, they deleted that post. Nonetheless, there were plenty of responses confirming the Binance demands.
Binance came back with an answer to why they deleted their post. They stand by their position. However, they mention that the way they communicated was excessive. Followed by an apology. This, in turn, led to a post explaining their listing process.
However, once more, plenty of X users refuted this post. This shows that many projects are not happy with Binance’s listing process. This seems to be an older issue; however, it sure adds oil to the current fire.
It’s marketing spin.
Let’s correct the record with actual data.
1. “Binance doesn’t make money from listings.”
False. Every listing is front-loaded with massive deposits and hidden costs.
Projects pay $100K–$2M+ in called “refundable security deposits.” Most never see that…— MASTR (@MastrXYZ) October 15, 2025
Compensation & “Airdrop” to Liquidated Users
There are growing concerns and criticism that Binance played a major role in the recent crash. I already pointed out that Crypto dot com is about to file a lawsuit against Binance.
🚨 JUST IN:@cryptocom CEO HAS FILED A CASE AGAINST @binance FOLLOWING $400B IN LIQUIDATIONS FLASH CRASH CAUSED BY BINANCE’S FAULTY INTERNAL PRICE ORACLES
GET YOUR FUNDS OFF #BINANCE IMMEDIATELY pic.twitter.com/jW3JFd2faC
— Crypto Guru (@BDCryptoGuru) October 16, 2025
Binance’s Unified Account system allowed traders to use assets such as USDE, wBETH, and BnSOL as collateral. However, the liquidation prices for these assets were determined based on Binance’s own spot order book. So, not on external oracles. This design flaw became critical during the market crash.
Resolution of USDE, BNSOL, and WBETH Price Depeg and Risk Control Enhancements 👇https://t.co/Tvrkj1Viwc
— Binance (@binance) October 11, 2025
Compensation Plan
Binance is offering compensation to liquidation victims on their platform. Initially, there was talk of $300 million in stablecoins. Yi He addressed this issue swiftly on X.
Due to significant market fluctuations over the past 16 hours and a substantial influx of users, some users have encountered issues with their transactions. I deeply apologize for this. If you have incurred losses attributable to Binance, please contact our customer service to… https://t.co/9Q7GZuFY5H
— Yi He (@heyibinance) October 11, 2025
Binance followed this up with an extra $400 million ‘Together Initiative‘. Some Binance users showed their compensation. CrypTech King lost $7k on Binance and received $1k compensation. He also points out that he lost $35k on ByBit and didn’t receive anything from ByBit.
Massive thanks to @binance and @cz_binance 🙏
Today I received $1000 USDC as partial compensation for the liquidation that happened during the unexpected market crash on Friday night, Oct 10.I had lost over $7,000 — this gesture from Binance shows they truly care about their… pic.twitter.com/zV5MEGPWx6
— CrypTech King™ 👑 #BNB (@CrypTechKing) October 15, 2025
Unfortunately, there are plenty of other users that state they lost substantial amounts. However, they claim that they received no compensation. And then there’s the Chinese whale sample. Apparently, he lost $2 million and received a 26 cents voucher. The original post by the Chinese whale has also been taken down now.
BREAKING: A Chinese whale who lost over $2,000,000 in the Binance flash crash received 0.26 USDT in compensation. pic.twitter.com/vmurN2cB0m
— Jacob King (@JacobKinge) October 14, 2025
So, the compensation plan shows goodwill from Binance. However, on such short notice, it’s difficult to please everyone. Nonetheless, the deeper issue at hand is Binance’s role in the liquidation process of October 10th.
Jeff Yan, Hyperliquid‘s founder, claims centralized exchanges underreport liquidations up to 100x. He directly accuses Binance and CZ of market manipulation and fraud.
🚨 JUST IN: Hyperliquid founder Jeff drops a bomb — claims centralized exchanges underreport liquidations by up to 100x 😳
He says “thousands of traders can get wiped in a second, but only one shows up publicly.”
Jeff directly accuses CZ and Binance of market manipulation and… pic.twitter.com/umkmGjakoX
— Rananjay Singh (@TodayCryptoRj) October 13, 2025
This October 10th crash exposed the worst fears of crypto’s fragility. Many fingers pointed straight at Binance. The narrative is heating up. We see Hyperliquid’s founder calling out underreported liquidations. Other rumors show preparations for legal suits over alleged exchange misconduct. So, Is the Binance FUD justified?
So, Is the Binance FUD Justified?
Here’s the honest truth. 1 I saw credible claims, leaked rate sheets and wallet traces, and passionate accusations.
NEW LEAK: Price sheet of 200+ crypto influencers and their wallet addresses from a project they were recently contacted by to promote.
From 160+ accounts who accepted the deal I only saw <5 accounts actually disclose the promotional posts as an advertisement. pic.twitter.com/Kph9dUvDxB
— ZachXBT (@zachxbt) September 1, 2025
However, here’s what I haven’t yet seen. That’s an airtight proof tying Binance itself to a deliberate orchestrated collapse.
Hence, I urge you to use caution, follow the on-chain evidence, and demand transparency. Because if exchanges wield that much power, every crash becomes political.
Should you take your assets off Binance in to your noncustodial wallet? You should always do that, regardless of which exchange you parked your assets.
So, is Binance too big to fail? Probably it is. However, never say never, we all remember FTX too well.
So. what do you think of this? Is the Binance FUD justified? Let me know in the comments. Do join our lively discussions on X and Discord.
Disclaimer
The information discussed by Altcoin Buzz is not financial advice. This is for educational, entertainment and informational purposes only. Any information or strategies are thoughts and opinions relevant to accepted levels of risk tolerance of the writer/reviewers, and their risk tolerance may be different from yours.
We are not responsible for any losses that you may incur as a result of any investments directly or indirectly related to the information provided. Bitcoin and other cryptocurrencies are high-risk investments, so please do your due diligence.
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