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Binance freezes withdrawals of stablecoin USDC as investors pull $2B

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Re: Binance freezes withdrawals of stablecoin USDC as investors pull $2B

#31

Post by tromp »

4pkjai wrote: post #12
ww520 wrote: post #3

Are people withdrawing the USDC coins or the USD behind the coins?

The crypto coins. Binance is a Crypto to Crypto exchange. You can't deposit or withdraw USD from Binance.

These Binance web-pages suggests otherwise:

[1] https://www.binance.com/en/support/faq/how-to-buy-cryptos-wi...

[2] https://www.binance.com/en/fiat/deposit

Re: Binance freezes withdrawals of stablecoin USDC as investors pull $2B

#32

Post by hall0ween »

RobLach wrote: post #20

The moment you halt withdrawals, the jig is up.

I'm no crypto expert here, admittedly. Isn't the point of decentralization to avoid this level of control?

It's like the crypto 'investor' response is "Decentralization...that's not so important. What we really want is sheer, unaltered speculation."

Re: Binance freezes withdrawals of stablecoin USDC as investors pull $2B

#34

Post by oneoff786 »

JumpCrisscross wrote: post #29
paulpauper wrote: post #18

Earlier quoted context omitted.

We will have to wait and see all the major stable coins still holding pegs

> the major stable coins still holding pegs How? In what assets? Even in Treasuries, tens of billions of unexpected sales in an off run will depress prices. If deposited in a podunk bank, it might literally go under.

Still refers to the present. You are referring to a hypothetical future.

Re: Binance freezes withdrawals of stablecoin USDC as investors pull $2B

#37

Post by oneoff786 »

birracerveza wrote: post #9
bb88 wrote: post #6

USDC is supposed to be the good stablecoin.

If you give me 100 USDC and I pinky promise to give them back but then I don't, whose fault is it? USDC's?

Really it depends on why you didn’t / couldn’t.

Re: Binance freezes withdrawals of stablecoin USDC as investors pull $2B

#38

Post by japoco »

jqpabc123 wrote: post #5

every digital dollar of USDC can always be exchanged 1:1 for cash. Well ... maybe not always ... and never without fees attached.

This is not what is happening here, the USDC peg to the dollar has nothing to do with this. The problem is that Binance converts every stablecoin you deposit there to BUSD, and so if you want to withdraw say USDC or USDT even they’d have to convert them, which is apparently what they’re having trouble to do.

Re: Binance freezes withdrawals of stablecoin USDC as investors pull $2B

#39

Post by yashg »

Octokiddie wrote: post #22

> The world's biggest crypto exchange will freeze all withdrawals of USD Coin while it conducts a "token swap" to boost its holdings of the dollar-pegged cryptocurrency, the crypto group's CEO Changpeng Zhao said Tuesday It's worth noting that USDC is not even a token controlled by Binance. It's controlled and issued by Circle. So effectively, Binance is refusing to honor its commitment to depositors to give them the…

Also pumping the price of a token without putting in actual money. When you can issue unlimited number of casino chips, you can sell an imaginary asset using as many chips as you want. Better still, get all casinos to accept each others chips to buy and sell those imaginary worthless tokens to lend credibility to chips and tokens.

Re: Binance freezes withdrawals of stablecoin USDC as investors pull $2B

#40

Post by latchkey »

I'm not defending Binance in any way, but this is FUD that is getting blown out of the water (arguably, people are on edge these days). It was pre-announced downtime for a hardfork on their BSC chain.

https://twitter.com/cz_binance/status/1602510004795367424

It has caused a bit of a bank run and cz says things are processing just fine (along with tons of 3rd party confirmations).

https://twitter.com/cz_binance/status/1602676998094069760

I know HN wants to see crypto die in a giant ball of flaming fire, but let's not lower ourselves to the point of just passing on FUD.

Edit: -4 incoming. I'm going to leave this here because it is worth it. I'm not a fan of FUD and neither should you be.

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