Ever since the crash of the FTX exchange, there has been a lot of uncertainty in the entire crypto industry. Since the crash took place, people have continued leaving the cryptocurrency market.
However, many investors who had their funds stored in the cryptocurrency exchanges have kept extracting their funds out of the exchanges.
They have kept moving their funds out of the exchanges and moving to self-custody platforms. People are no longer highly fond of cryptocurrency exchanges.
They do not want to save funds in the exchanges as they do not want to take a risk similar to the FTX exchange one.
Billions have Left the Centralized Exchanges
The cryptocurrency industry is known for offering two kinds of exchanges. The first kind is decentralized exchanges that are not governed by any central body.
The second one is the centralized exchanges that are governed by a single (centralized) body.
On several occasions, the centralized exchanges have bragged about the safety and protection they are able to provide to the users.
They have continued mocking the decentralized exchanges because of no ruling entity and matters not being handled by them properly.
However, fate truly showed the centralized exchanges where the decentralized exchanges were compared to their protection level.
The FTX exchange was a centralized exchange that ended up facing its demise. It happened because one particular entity was managing the funds of the investors and users.
They ended up mismanaging the funds and the assets of the investors/users, causing a major crash for the entire cryptocurrency industry.
After the FTX exchange’s crash, people have not only lost their trust in the FTX exchange but they have lost it in the entire CEX sector.
Therefore, people have started to withdraw their funds from the CEXs and so far, they have removed billions. The investors started to withdraw their funds from the CEXs after the FTX dilemma.
It triggered a great level of concern among the investors/users and they are still doing the same.
Funds Withdrawn from the Centralized Exchanges
The FTX collapse started on November 5, 2022. Since then, a great number of Bitcoin and Ether tokens have outflowed the centralized and the decentralized exchanges.
However, the withdrawals recorded from the centralized exchanges are extremely high compared to the other kind.
Cryptoquant.com, a major statistics firm from the crypt world, has shared information pertaining to withdrawals in the past 51 days.
The firm has reported that since the FTX collapse, a total of 356,848 Bitcoins have left the exchanges. At the time of writing, the total valuation of the huge number of Bitcoin is over $6.02 billion.
This is the largest outflow that has been recorded for Bitcoin since the beginning of the year. The same is the case with the second-largest cryptocurrency, Ether (ETH).
More Details from Cryptoquant.com
Cryptoquant.com has provided information about Bitcoin from centralized exchanges.
According to the data collected by the firm, the total number of Bitcoin held by the centralized exchanges on November 5 was 2,508,773.
However, the latest data collected on December 26, 2022, shows that the Bitcoin left on the centralized exchanges is 2,151,925.
On November 5, there were a total of 22,528,626 ETH held by the centralized exchanges However, the number of ETH has dropped to 18,045,150 ETH at the time of writing.
Over $11.53 Billion of BTC and ETH were removed from Trading Platforms
The firm has also revealed that more than $11.53 billion worth of Ether and Bitcoin were removed by the users from the trading platforms.
As for the stablecoins, the trading platforms were in possession of more than $35.20 billion worth of USDT and USDC. However, these many funds were held by the firms prior to the crash of FTX.
Since the crash, more than $7.8 billion worth of USDT and USDC have been removed from these trading platforms.