BINANCE TEMPORARILY FREEZES USDC WITHDRAWALS AS TRADERS PULL ABOUT $2B IN FUNDS 14th of December , 2022
Binance temporarily suspended deposit on USDC and USDT on Solana until further notice. The major reason for this decision is a token swap.
Solana has one of the largest blockchain and it's close relationship to the recent bankrupt FTX Key investor Bankman - Fried is currently affecting it's ecosystem. Binance also temporarily support for the two major stable coins - Circle's USDC and Tether's USDT. Other crypto exchange which currently halted deposit and withdrawal of Solana version of USDC and USDT are crypto.com and Okx. Okx currently delisted the token effectively.
These mass withdrawals in Binance is allegedly as a result of the fear of uncertainty on outcome of the FTX Bankman - Fried Case. The withdrawal has nothing to do with the recent proof of reserves report published last week as Binance Bitcoin holdings are over collateralized to cover losses in case of default. There is another speculation that bitcoin has become bullish and traders are buying bitcoin in bulk to get profit. Hence traders converting stablecoins to Bitcoin. If this speculation is true, then we may get a new bullish trend within the next few weeks. USDC has its value fixed at $1. It is majorly used by crypto traders as a tool to swap their cash at times of high volatility or uncertainty.