Binance has placed a pause to the withdrawal of USDC, a stablecoin, in order to carry out a token swap, according to the company. The announcement follows a wave of massive withdrawals by traders who got uneasy in the wake of the FTX collapse from Binance, the largest cryptocurrency exchange platform in the world.
In a statement shared on Twitter, the business outlined how the token swap would let clients trade cryptocurrencies without using fiat money.
The platform has witnessed an increase in withdrawals of USDC, a stablecoin pegged to the dollar one-to-one, according to Binance CEO Changpeng Zhao on Twitter. Top trader and BitTorrent CEO Justin Sun is accused of withdrawing $50 million from the exchange, which caused investors to flee in fear.
#Binance is conducting a token swap involving $USDC. As a result, $USDC withdrawals are temporarily paused.$USDT & #BUSD withdrawals are available and unaffected. $USDC withdrawals will reopen once the token swap is completed. https://t.co/CxgCGBUJEA
— Binance (@binance) December 13, 2022
In an effort to calm concerns, Zhao also posted a link to Ether showing he has redeposited $100 million USDC into Binance.
According to data from on-chain sources, it was reported that traders had withdrawn $1.8 billion from Binance in the previous 24 hours. According to the data, Paxos and Huobi each took home a portion of the influx, for a net flow of $162 million between the two exchanges. According to Binance, investors can trade in and out of other cryptocurrencies using USDC without having to convert their money back into US dollars.
Additionally, it stated that USDC trading could be done on Binance so that investors may transfer to other exchanges.
