Based on Binance CEO Changpeng Zhao, the alternate had to briefly pause processing USDC withdrawals because of insufficient USDC reserves on the platform. The pause was necessitated as a result of it needed to complete a token swap. Binance holds a big chunk of its stablecoin holdings, over $11.5 billion, in the Paxos-issued BUSD, a fiat-backed stablecoin founded by Binance and Paxos, based on Nansen data.
U.S officials have shown a particular curiosity in stablecoin regulation, especially following the latest Terra Luna crash. In Might, crypto markets went right into a freefall that led stablecoins TerraUSD (UST) to depeg from the greenback, which in flip, precipitated its linked cryptocurrency Luna to crash as effectively. As of a consequence, many Terra and Luna traders saw their investments vanish in a matter of days. Within a number of weeks of Terra’s downfall, the crypto market plunged again and several crypto companies introduced layoffs and froze withdrawals to slash prices because of the extreme market circumstances. Some firms like Three Arrows Capital and Celsius have since filed for bankruptcy.
Because they’re solely digital, cryptocurrency wallets (even when well-protected) are susceptible to a level of online interference. It’s not much completely different from having your checking account information saved on-line – it’s safe and also you would possibly never experience a breach, but the risk is always there. Blockchains are designed to be hack-resistant, yet there’s nonetheless the potential for malware meddling in your crypto.