“It’s just normal market behavior.”
bank run
Changpeng “CZ” Zhao wants everyone to know that it’s perfectly normal and okay for people to rush out of Binance, the cryptocurrency exchange he runs.
“Things appear to have stabilized.” CZ Tweet After the world’s largest cryptocurrency exchange Withdrawal stop USDC ‘stablecoins’ on Tuesday — and then Reuters reported that federal prosecutors are considering criminal charges against executives, including Binance and Zhao himself.
Binance has suspended withdrawals of USDC coins, whose value is supposed to be pegged to the US dollar, for about eight hours to initiate a “token swap.” Still, the move has prompted snappy customers to withdraw about $3 billion since yesterday, says blockchain analytics firm Nansen. declared in a tweet.
“Funds are already coming back,” said Zhao. In a Twitter Spaces discussion on Wednesday, CNNBinance’s CEO said there were “some withdrawals” but they represented “very normal market movements”.
FTX Fallout
All of this comes at a very difficult time for the cryptocurrency industry, which began last month when Binance’s former rival exchange FTX crashed and went up in flames, exposing interpersonal drama and alleged financial crimes. I was.
The effects of the FTX crash have been swift and relentless, culminating in the arrest of FTX founder Sam Bankman-Fried in the Bahamas this week…”
With deep ties to the ecosystem, the collapse of FTX rocked the entire crypto industry and knocked out several other players — as Binance is in the news and under US government scrutiny. Destiny now balances too.
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