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Binance temporarily suspends USDC withdrawals

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Re: Binance temporarily suspends USDC withdrawals

#31

Post by nailer »

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.…

> They use them interchangeably

That’s alarming. People purchased a coin backed by Circle and got a coin backed by an unrelated company.

Re: Binance temporarily suspends USDC withdrawals

#32

Post by antupis »

charcircuit wrote: post #19
AdamN wrote: post #14

Earlier quoted context omitted.

What's so weird about these stable coins is that there's no money to be made with them (for the end user). They're 'stable' so have no upside but they're non-redeemable when things aren't working and have a real probability of going straight to zero at any given moment. I'd get it for some volatile coin where the risk is potentially worth it but holding these for more than a few days for clearing (?) doesn't make sen…

Why do people hold cash instead of having all of their money invested? Stablility is a feature. People want a stable store of value that is on chain.

Problem lies here that dodgy institutions without goverment supervision are issuing stable coins so you never know when some crypto guy is going to do rug pull. But first government backed stable coin which you can buy and sell fast will be huge.

Re: Binance temporarily suspends USDC withdrawals

#33

Post by plsbenice34 »

SilverBirch wrote: post #28

Ah yes, truly the peak of cryptocurrency "Sorry, we can't process that highly decentralized censorship proof freedom coin, we're waiting for our bankers in New York to wake up".

Nobody with basic knowledge in this area would think of USDC as "highly decentralized censorship proof freedom coin". It is centralised and pegged to USD so obviously it must be intentionally interlinked with the banking system.

Re: Binance temporarily suspends USDC withdrawals

#35

Post by shawabawa3 »

xg15 wrote: post #8

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...

They likely have a reserve of say $100M in USDC to fulfil withdrawals, and only when withdrawals exceed that amount before they can do the bank transfers to top it up will they have to suspend withdrawals

Re: Binance temporarily suspends USDC withdrawals

#37

Post by janmo »

sho wrote: post #30

The quotes around "temporarily" are editorialising, IMO. They should be removed. No fan of Binance but it's a reasonable explanation and submitter has given no reason to think it is not, indeed, a temporary situation, as has happened many times in the past without particular note.

It is not reasonable at all. It means that:

1. They are not prepared at all for a "bank run"

2. USDC on the exchange are not backed by real USDC. Therefor they need to market buy them.

3. CZ is telling people to withdraw using BUSD and USDT, both more or less Binance controlled stables that are much harder to convert into real USD.

It would be extremely wise to exit Binance and Binance related coins such as BNB, BUSD and Tether.

Re: Binance temporarily suspends USDC withdrawals

#38

Post by ivanmontillam »

What I fear is that U.S. Government is meddling with the only exchange that works properly in Venezuela and Argentina, especifically for the P2P trade.

I know this tweet is not about P2P, but let me explain.

In Venezuela and Argentina, the parallel markets are the true king of the economy. You have to exchange money using P2P exchanges if you want to barely have decent personal finances, you know, to access good currency exchange rates.

It's true that other P2P exchanges exist, like Airtm and Reserve. They just do not have the capacity nor good exchange rates to appropriately cover market needs. They just can't, they are not as resourceful as Binance.

If the U.S. Government starts meddling with Binance and Binance has to close, reduce functionality or kill the P2P feature on the grounds of AML, it's going to send Venezuela and Argentina to the dark ages again.

EDIT: Egregious typos.

Re: Binance temporarily suspends USDC withdrawals

#39

Post by andrewinardeer »

mikelovenotwar wrote: post #34

Hopefully another big player in the global ponzi scheme hitting the wall soon.

Maybe, maybe not. But your comment comes off as mean spirited. People will lose a lot of their hard earned money if that happens.

Sometimes people's empathy doesn't travel past their own personal horizon which seems to be the case with your comment.

Re: Binance temporarily suspends USDC withdrawals

#40

Post by SilverBirch »

plsbenice34 wrote: post #33
SilverBirch wrote: post #28

Ah yes, truly the peak of cryptocurrency "Sorry, we can't process that highly decentralized censorship proof freedom coin, we're waiting for our bankers in New York to wake up".

Nobody with basic knowledge in this area would think of USDC as "highly decentralized censorship proof freedom coin". It is centralised and pegged to USD so obviously it must be intentionally interlinked with the banking system.

This is the fiction of Crypto though - we're all here in this space because we want decentralized censorship-proof, public recorded transactions, and we then proceed to immediately abandon all of those principles to trade dollar denominated assets on a central exchange that operates out of a shady jurisdiction.

Yes, we all know what the point of crypto was. Yes we all know what is actually happening, the only question left is why the hell are we still doing it?

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