The panic among Bybit customers caused an outflow of $50 million in funds from the Bybit platform.
Bybit is a moderately popular cryptocurrency exchange, founded in 2018. This platform specializes in derivatives trading and offers perpetual contracts for various cryptocurrencies such as Bitcoin, Ethereum and others. Bybit is known for its user-friendly interface, powerful options and robust security measures. This company is headquartered in Singapore and serves a global user base.
On May 21, 2024, the proof-of-reserve (PoR) chart of crypto company Bybit on the Arkham Intelligence platform fell sharply, likely due to a technical issue.
Many Bybit customers believed that the Bybit team mismanaged the funds and assumed that the time had come to withdraw the funds from the platform, before the bankruptcy.
Some crypto enthusiasts have addressed the main problem and tried to convince the Bybit customer that there was no problem with actual reserved funds behind Bybit.
In this bankruptcy rumor, the Bybit exchange faced a net outflow of $50 million in crypto assets from the platform within 24 hours.
So far no official information has come to the public domain regarding this information by the Arkham Intelligence team, but another Crypto analysis company Defillama reported that Bybit’s reserves currently amount to $9.45 billion and this is enough to to continue to have confidence for Bybit customers.
It is worth noting that in recent years, many crypto projects and companies have seriously collapsed. Notably, most of the crypto lending platform collapsed and the second popular crypto exchange FTX also collapsed heavily at the end of 2022.
So, this kind of negative news surrounding any crypto company is a common reason to fuel fear waves among crypto investors.
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