In a new installment on Binance and USDC cryptocurrencies, the US arm of the largest exchange in the market has halted withdrawals through the Ethereum network amid a shortage of the currency on the platform.
The case may be related to massive withdrawals of USDC on Binance US through the Ethereum network.
It is noteworthy that Circle, the company that issues USDC, may have reported the issuance of Binance USD to New York authorities in recent days. Thus, the withdrawal of the looting quickly attracted the attention of the community.
Binance US Blocks USDC Withdrawals on Ethereum and Enables Community Alert
Mike Burgersburg’s Twitter profile, Dirty bubble mediareleased last Tuesday (14), that Binance US had halted withdrawals of the stablecoin USDC through the Ethereum network.
As withdrawals continued to run normally on the AVAXC, BSC, TRX, MATIC and SOL networks, the case led followers to question the reason for the suspension of withdrawals, which were not released again until Wednesday (15).
On the issue status page, Binance US stated that there are no more USDC withdrawal issues.
“The inventory coverage issue for USDC has been resolved. USDC deposits and withdrawals are now available.”
That is, Binance took hours to get new USDC liquidity to cover withdrawals. According to Mike’s investigation, Circle itself sent 5 million USDC to the brokerage, which returned to release withdrawals.
When Binance announced that it was rebalancing its inventory, the matter attracted attention.
Tension in the stablecoin market
In recent months, any topic related to so-called stablecoins has quickly reverberated among investors. This is because they are large coins in market capitalization and occupy a large portion of the daily trading volume on exchanges.
In addition, the market saw the fall of Terra (LUNA), which had the stablecoin UST in its ecosystem, going from $1 to 0 in a matter of days.
In recent days, Binance itself has been having problems with its Paxos-issued stablecoin, Binance USD (BUSD). According to Bloomberg, USDC may have self-reported the rival to regulators, citing rumors that Paxos was issuing stablecoins without supporting the market.
Since last Monday (13), when the first rumors emerged, BUSD has lost nearly $2 billion in market value, showing tension with the stablecoin.
It is worth noting that even though the BUSD is operating in a decline, the currency continues to trade normally with most brokers. In Latin America, for example, brokerage Bitso decided to suspend transactions with the currency during investigations in the US.
Source: Live Coins
Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
