MEXC at Risk of Bankrun Amid Insolvency Rumors

Core Viewpoint - There are concerns regarding the financial stability of cryptocurrency exchange MEXC, particularly following significant withdrawal activity totaling $5.5 billion, leading to speculation about potential insolvency [1][2]. Group 1: MEXC's Financial Situation - MEXC has faced difficulties with user withdrawals, prompting analysts to question its financial health after the exchange recorded massive outflows [2]. - The exchange has publicly denied insolvency claims, asserting its strong financial position and promising to update its Merkle tree data for user verification [2][3]. - MEXC claims that all assets are "fully backed" with over 100% coverage according to Proof-of-Reserves, although this assertion is challenged by data from blockchain analytics platform CryptoQuant [3][4]. Group 2: Market Impact - The outflows from MEXC are part of a broader trend affecting other exchanges, with Gemini and OKX also experiencing notable net outflows [5]. - Major cryptocurrencies such as Bitcoin (BTC), Solana (SOL), and Ethereum (ETH) have been significantly impacted by these outflows [5]. - Recent data indicates that treasury firms have resumed selling their Ethereum holdings, contributing to market weakness, with Ethereum ETFs experiencing $184 million in outflows [6]. Group 3: Ethereum Price Concerns - The price of Ethereum is at risk unless it can regain strength above $4,000, currently trading at $3,868.74 with a slight increase of 0.87% in the last 24 hours [7].