Now that Binance is in the spotlight, The most popular cryptocurrency exchange in the world has chosen to halt withdrawals from USDC. It’s a stablecoin connected to the dollar. A campaign to stop the panic that has gripped investors from getting worse. Binance has had billions of dollars taken from its platform in a single day. Winter of crypto has arrived. Doubts now surround Binance in the wake of FTX’s collapse and the arrest of its founder.
In a 24-hour period, about 3 billion dollars were withdrawn. Approximately $3 billion worth of assets were out from Binance, according to an analysis from the company Nansen. Being the biggest figure since the drop in the value of Bitcoin in June of this year.
Although Binance has refuted these estimations, this is a significant amount for a single day. The business made an effort to convey a message of peace.
BINANCE FREEZES WITHDRAWALS IN THE FACE OF PANIC: BILLIONS HAVE VANISHED IN A DAY
Binance claims that it was an isolated incident. The statistic was quickly refuted by Changpeng Zhao, who also noted that deposits “are coming back”. And the situation “has calmed”. However, they do mention that there were withdrawals totaling $1,140,000,000. Despite the fact that this is a significant number. He says that “we have seen this before with the LUNA or FTX blockades”.
Withdrawals from Binance’s stablecoin are no longer possible, which is suggestive of protectionist measures. The transfer of assets on USDC is still permitted because the embargo only affects withdrawals and not revenue. The blockade, according to the CEO of Binance, is something particular. It will have a financial cap, and it is a standard precaution. However, it is untrue that it frequently occurs or that 25% of USDC reserves vanish in a matter of days.
Investors in Binance’s stablecoins worry that the entire crypto industry is suffering from the unpredictability in the area. The majority of transactions involving Bitcoin and other cryptocurrencies go through Binance, the first trading platform in the world.
The freezing of the USDC withdrawal does not necessarily mean that there will be an impact on the rest. The majority of the major cryptocurrencies, including Bitcoin and Ethereum, operate normally. But there are some questions concerning the function that Binance performs. It worries about the stability of its reserves’ finances, which ultimately has a significant impact on the entire crypto business.