• SEC recently filed lawsuits against two major crypto exchanges, Binance and Coinbase.
• The lawsuits have caused a ripple effect in the market, with Bitcoin’s price dropping and then recovering.
• Glassnode data has revealed a significant outflow of assets from both Binance and Coinbase.

SEC’s Lawsuits Against Major Crypto Exchanges

The U.S. Securities & Exchange Commission (SEC) recently filed two historic lawsuits against two major cryptocurrency exchanges – Binance and Coinbase – causing a ripple effect in the market, with Bitcoin’s price sharply dropping before recovering.

Asset Outflow From Binance And Coinbase

Glassnode data reveals a significant outflow of assets from both Binance and Coinbase following the SEC’s actions, suggesting that market participants are taking their funds elsewhere for safekeeping.

Comparing Withdrawal Rates Between Exchanges

Alpha analyzed withdrawal rates between exchanges to determine if there is any noticeable difference in asset withdrawals between the two cryptocurrency platforms after the SEC lawsuits were filed.

Binance vs Coinbase: Analyzing Asset Withdrawals

Binance’s withdrawal rate increased by 8% since mid-May while Coinbase’s withdrawal rate remained largely unchanged despite its recent legal troubles with the SEC. This indicates that more customers are opting to withdraw their funds from Binance than from Coinbase in light of recent events.

Conclusion

The news of SEC’s lawsuit has had an impact on asset withdrawals from both Binance and Coinbase, though it appears that investors are more likely to take their funds out of Binance than out of Coinbase at this time given the uncertainty surrounding both platforms‘ legal statuses.

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