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Binance temporarily suspends USDC withdrawals

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Re: Binance temporarily suspends USDC withdrawals

#6

Post by Tenoke »

nailer wrote: post #4

What is BUSD and why does it affect withdrawals of an unrelated token?

~ Same thing as USDC but issued by Binance. They use them interchangeably in some cases since they themselves can also convert them 1:1 (both are worth 1$) just not immediately- e.g. if you have 100 busd you can straight cash that out as usdc and that might temporarily make it so they have less usdc than needed.

People post when Binance have generic delays to withdraws for years in other forums and it's a non-story. I imagine it only made it on the front page because people think it means more than it does.

Re: Binance temporarily suspends USDC withdrawals

#8

Post by xg15 »

If their PAX/BUSD -> USDC conversion only works during the opening hours of that New York bank, wouldn't this be well-known to everyone who tried to convert to USDC in the past?

As in, what "situation" are they talking about? Going only from their tweet, there is nothing out of the ordinary happening at all...

Re: Binance temporarily suspends USDC withdrawals

#9

Post by joyfylbanana »

Tenoke wrote: post #6
nailer wrote: post #4

What is BUSD and why does it affect withdrawals of an unrelated token?

~ Same thing as USDC but issued by Binance. They use them interchangeably in some cases since they themselves can also convert them 1:1 (both are worth 1$) just not immediately- e.g. if you have 100 busd you can straight cash that out as usdc and that might temporarily make it so they have less usdc than needed. People post when Binance have generic delays to withdraws for years in other forums and it's a non-story.…

I think what is interesting here is that they clearly don't have 1:1 USDC reserves. And as their compliance has been questioned by many in the past might be that they might not be able to convert large amounts of BUSD to USDC, not at least cheaply.

Re: Binance temporarily suspends USDC withdrawals

#10

Post by joyfylbanana »

gizzlon wrote: post #5
nailer wrote: post #4

What is BUSD and why does it affect withdrawals of an unrelated token?

Guess it's Binance' stable coin. It does seems a little strange, do they convert all their assets to their own stable coin? :O https://coinmarketcap.com/currencies/binance-usd/

Yes they do, they announced it a while back. It is certainly interesting way to handle customer assets.
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