Cryptocurrency
Binance exit aftershock: Can one resignation tip the crypto trust scales?
On Sept. 13, news broke of yet another high-level executive parting ways with Binance.US.
This time, it was none other than Brian Shroder, the CEO and president of the exchange, who, after two years in the hot seat, was heading for a “deserved break,” as Binance CEO Changpeng “CZ” Zhao was quick to announce on X (formerly Twitter) that same day.
There has been some speculation regarding recent management changes at @BinanceUS. Brian Shroder is taking a deserved break after accomplishing what he set out to do when he joined two years ago. Under his leadership, https://t.co/hSHrrlF7o7 raised capital, improved its product…
— CZ Binance (@cz_binance) September 15, 2023
The news coincided with the announcement that around 100 people had also lost their jobs that day — about a third of the workforce.
A massive outflow of funds followed, with the highest being just over $66 million in a single transaction. Zhao was keen to underline that Shroder’s departure was amicable and that he had achieved everything he had set out to do.
“Ignore the FUD,” was the call from the parapets, the common plea for calm when any kind of disruption occurs.
In an industry strained and battered by tales of fraud and wrongdoing, however, this call went unheeded once again. The days since the news broke have seen significant outflows from Binance to platforms such as Jump, AU21 Capital, QCP Capital and Wintermute.
Once again, it raises issues that have long dogged the cryptosphere, chiefly those of influence and trust. There are few other sectors where layoffs or a change at the top of a company can have such an impact.
Such things are generally accepted as the natural ebb and flow of the business world, and while there may be a momentary blip, more often than not, things are back on track fairly soon afterward.
Even in this instance, from the chart, it is apparent that there were still sizeable inflows to Binance during the period. The two incidents may be completely unrelated. With so many factors involved, no one can say for sure.
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Jim Graham, a cryptocurrency analyst at think tank PsyBold, told Cointelegraph: “While we can’t attribute the shift in funds wholly to last week’s announcement, we most certainly can’t reject it, either. There have been several key managerial changes in the past few months, and virtually all of them have been accompanied by a dip in holdings on the platform. Trust remains a massive obstacle for crypto platforms, and it’s an obstacle they are failing to overcome.”
Money is a valuable commodity, and even the hint that it may be in jeopardy is reason enough to react quickly and decisively.
As the saying goes, trust is earned, not given away, and the recent negative events involving crypto platforms have done little to raise that level of trust. Graham added:
“Crypto platforms need to be on par with banks regarding trust. Investors need to know that entrusting their money to them is a good, safe idea, not a risky one. Unfortunately, they are nowhere near that, and until we reach that level, these spikes are inevitable.”
So, how do the platforms get to that level of trust? Most people would simply say, stop doing bad things. Once crypto platforms act more like banks, people may trust them more.
But this is much easier said than done. For one, most banks have been around for years, some even hundreds of years. Trust has an element of longevity to it, which people like. The general feeling is if something or someone has acted responsibly and transparently for a long time, there is more of a chance that they will continue to do so.
Crypto platforms don’t have that luxury, of course. Most can only look back on a few years of existence; the only pledge they can give is their word.
On top of that, there is the age-old discussion of regulation. Licensed banks are regulated. That means an authority monitors what they do and is there to step in if things go wrong.
The last thing such an authority or the bank wants is a bank run, as this represents a complete breakdown in trust for all concerned, with the consequences that go with that. Once that has happened, it is tough to win that trust back, as witnessed during the economic crisis of 2008.
In the unregulated world of crypto exchanges, there is currently a stalemate. Some investors are in the middle, clamoring for regulation, fearing for their investments. In contrast, others are vehemently opposed, stating regulation is the very thing cryptocurrency was created to avoid.
And on either side are the exchanges and the authorities, each accusing the other of this and that in what seems like an endless spiral, with neither ready to back down.Sandra McAllister, an attorney specializing in tech litigation with Clifford Chance, told Cointelegraph:
“The need to clarify the legalities around trading cryptocurrencies, particularly in the U.S., is vitally important for the future of the industry, but the protracted processes and tactics being employed are damaging, for both sides, and that, in turn, is turning investors away.”
“The power of social media is also a pressure on the market. The bounce in the Ripple price we saw in July following the court ruling on XRP underlines that perfectly. The decision was anything but conclusive and, in reality, nothing more than a step along the path, but it was blown up on social media as a huge victory that drove up prices. We only have to see where the Ripple price is today to see how much of a victory it actually was,” she said.
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Moving assets around between different exchanges or different assets is nothing new or unusual, of course. In times of economic downturn, funds tend to flow toward the “safer” havens, such as bonds and gold, before reverting to more profitable areas when things pick up.
Graham commented, “While diversifying holdings and being ready to react to ensure you are not unduly affected by negative pressures is sound financial advice, the problem facing crypto holders right now is which platform is safer than another. The FTX demise showed us that ‘too big to fail’ does not apply, so what remains?”
About a month ago, market analysts noted that profit-taking on the Bitcoin network was modest. However, that has changed.
The on-chain insights provider Glassnode has revealed that profit-taking on the leading digital network is ramping up again. This comes as Bitcoin (BTC) remains in a consolidation phase following weeks of upward movement.
BTC Holders Take Profits
According to Glassnode’s tweet, bitcoin’s realized profits hit $2.46 billion on June 30, while the network’s seven-day Simple Moving Average (SMA) spiked to $1.52 billion.
The SMA, which identifies trends by averaging prices over a specific period, is currently above its year-to-date (YTD) average of $1.14 billion. However, the metric is still below its November-December 2024 peak of approximately $4.5 billion.
The spike in Bitcoin’s seven-day SMA indicates that coin distribution on the network is on the rise. Mid-to-long-term BTC holders have been leading this profit-taking spree; Glassnode said investors aged three to five years have realized at least $849 million in profits. This cohort of market participants is followed by those aged seven to ten years, with $485 million in profits, and investors aged one to two years with $445 million.
Short-term BTC holders, those holding for under one year, have been cashing out the least gains, at less than $6 million.
Interestingly, older BTC holders have been leading the profit-taking for this cycle. CryptoPotato reported a rise in spending by this cohort in late May, which drove the aggregate volume for the one- to five-year cohorts to $4 billion, its highest level since February. While older investors take the lead, the bulk of the volume is coming from this particular group of Bitcoin holders.
Whales Are Redistributing Too
Glassnode’s latest report is further substantiated by an analysis from the institutional decentralized finance (DeFi) analytics platform, Sentora (previously known as IntoTheBlock).
The firm disclosed that wallets holding more than 1,000 BTC have been steadily reducing their balances. This indicates that although institutional money is flowing into Bitcoin, whales are still offloading their holdings.
It is worth mentioning that Sentora sees the redistribution by whales as a sign of a maturing market rather than weakness. Older whale coins being dispersed could become a dynamic that would strengthen Bitcoin’s long-term potential.
Meanwhile, BTC was still consolidating at the time of writing, hovering under $110,000 – a level, which it has remained confined to in the last few weeks.
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The past 24 hours saw enhanced volatility in the cryptocurrency market. Bitcoin managed to come on top, but the majority of altcoins are feeling the pressure.
Total liquidaitons across the entire sector also increased considerably, approaching the $260 million mark.
Bitcoin Price Plunges to $105K but Recovers
Starting with Bitcoin, the past 24 hours saw it tumble toward a local daily low at around $105,145, but as you can see on the chart below, the cryptocurrency managed to pull off a V-shaped recover.
As a result, it is currently trading at $107,720 and is up by almost 1% on the day.
This comes amid important economic developments in the US where Donald Trump’s “big beautiful bill” passed Senate and moves on to the next step of the approval process. If accepted, many speculate that it could have a positive effect on the cryptocurrency markets because it would alleviate tax pressure on retail investors, potentially freeing up capital for riskier investments.
Altcoins Feel te Pressure
While BTC managed to pull ahead following the increase in market volatility, the same is not true for many altcoins. The situation is mixed, but many altcoins dropped by more than 3% during the day, which is indicative of the current dynamices where Bitcoin is clearly dominant.
The best performer for today is PENGU – the native cryptocurrency of the Pudgy Penguins ecosystem, up by 6.3%. On the other side of the coin, we have Algorand’s ALGO, which is down 6.5%.
Coinglass also shows a 30% increase in liquidated positions across the derivatives markets, currently totaling around $260 million.
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Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. See Disclaimer for more information.
Cryptocurrency charts by TradingView.
[PRESS RELEASE – Singapore, Singapore, July 2nd, 2025]
A participant in Aptos Foundation’s LFM program, Echo’s TGE further cements its role in Bitcoin DeFi on Aptos
Echo Protocol, the first Bitcoin liquid restaking and yield layer on MoveVM and the largest protocol on Aptos by total value locked (TVL), has launched its Token Generation Event (TGE).
Echo’s TGE follows a period of record-breaking growth and community engagement, underpinned by participation in Aptos Foundation’s LFM program—a premier initiative that provides hands-on guidance to Aptos-native projects preparing for major product and token launches.
Driving the BTCfi Momentum on Aptos
With over $285 million in aBTC minted and Echo securing 65% of all bridged BTC assets on Aptos, the protocol has emerged as a key player in the growth of BTCfi (Bitcoin DeFi) on Aptos. Echo enables users to unlock yield opportunities on their Bitcoin holdings via aBTC—a cross-chain liquid Bitcoin token, backed 1:1 by BTC—while powering liquidity and collateral mobility across Aptos-native DeFi protocols.
Echo recently surpassed an all-time high of $878 million in TVL, fueled by incentive campaigns, integrations with leading DeFi projects in the Aptos ecosystem and high user engagement. To date, the protocol is responsible for more than 1 million user transactions and 60,000 daily active users.
“The launch of the ECHO token marks a major milestone in our mission to bring BTCfi to life. With this TGE, we are unlocking a new phase of growth for our ecosystem and creating real opportunities for users, builders and the broader Aptos community,” said Jonathan Phay, Co-Founder of Echo Protocol.
Accelerating Growth with Aptos LFM Program
Echo’s rapid evolution has been supported through participation in Aptos Foundation’s LFM program, which offers strategic mentorship, marketing resources and ecosystem-wide support for Aptos-native projects preparing for TGEs and beyond.
“Echo Protocol has been instrumental in making BTC a productive, on-chain asset within the Aptos ecosystem,” said Ash Pampati, Head of Ecosystem at Aptos Foundation. “This a major milestone—not just for Echo, but for BTCfi adoption on Aptos as a whole. Supporting Echo through its participation in LFM has been a key part of our mission to help Aptos-native projects scale and succeed.”
Building the Future of Bitcoin Utility on Aptos
Echo’s TGE represents the next step in advancing Bitcoin utility on Aptos. Starting today, ECHO tokens will be available to users via Binance Alpha, Gate and Kucoin. Following its TGE, Echo plans to continue driving BTC liquidity and composability across the ecosystem, with new products and integrations aimed at expanding BTCfi use cases.
About Echo Protocol
Echo Protocol is a Bitcoin liquidity aggregation and yield infrastructure layer on MoveVM designed to make Bitcoin productive for holders, ecosystems, and DeFi protocols. By unifying fragmented BTC liquidity, enabling seamless DeFi integration, and amplifying yield opportunities, Echo provides the foundational infrastructure for unlocking BTC utility across chains. Echo Protocol is backed by leading investors such as Aptos, Maelstrom, and Selini, and is rapidly becoming the go-to layer for BTC capital efficiency in the modular DeFi stack.
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