PSA: If anyone is trying to get their money out of Binance DO NOT withdrawal as a BEP2/20 token – withdrawal to the native chain. That is a centralized wrapped token controlled by Binance. Withdrawing a BEP2/20 token to cold storage is the same as keeping your crypto in Binance.

With recent concerns about Binance and everyone talking about withdrawing to cold storage/hot wallet – I thought it was important to make sure everyone is aware of the difference between withdrawing in a native chain verse a Binance-wrapped token.

Binance sneakily encourages all users to withdrawal their crypto into the BNB ecosystem by making transfer fees into the BNB ecosystem cheaper than native chain withdrawals. If you withdrawal your crypto as a BEP2/20 token into cold storage and then Binance as a company fails – you’re just as screwed as if you left your money with Binance. Either the value of the tokens fail because they aren’t backed or the BNB chain gets halted and you are left with dead tokens.

If you are trying to get your money out of Binance, pay the extra fee and withdrawal to the native chain. If your money is already a BEP2/20 token and you want to get your crypto out of Binance you need to convert it to the native chain.