The world’s largest cryptocurrency exchange by trading volume, Binance, announced on Tuesday that it was pausing withdrawals of the stable-coin USDC.
The platform has suffered huge outflows of funds following the collapse of the FTX exchange, according to media reports. Transactions with the dollar-pegged USDC token have been temporarily suspended.
The move reportedly comes amid growing investor concerns about Binance’s stability in the wake of the bankruptcy of rival exchange FTX in Turkey, which faces a criminal investigation in the USA over the misuse of investor funds.
Binance explained the temporary pause of USDC withdrawals was due to a token swap, which means exchanging one cryptocurrency for another, Binance’s chief executive Changpeng Zhao tweeted on Tuesday at around 08:20 GMT.
The cryptocurrency USDC is known as a stable coin because it’s pegged one-to-one to the US dollar. It is used by investors to trade in and out of different cryptocurrencies without the need to move money back into dollars.
According to Zhao, swapping USDC with two other crypto tokens – Paxos Standard and Binance USD – requires using traditional dollars at a bank in New York.
The banks are not open for another few hours. We expect the situation will be restored when the banks open. Users can still withdraw other stablecoins including BUSD and tether.
RT. com / ABC Flash Point News 2022.
Crypto Ponzi scheme was just another way for the Cabal to get rich, and for deep state actors to play games.
Every snowball-system collapses one time; that’s immanent to the game. Cryptos are nothing else than a snowball-pyramid. Presently it collapses, but it is too big to disappear completely; it probably will start to grow again. My recommendation: buy.