Binance addresses all recent FUD in a blog post

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Altcoins
Binance addresses all recent FUD in a blog post

Binance, the world’s largest exchange for crypto assets, has reacted to all the recent FUD in a single post in its blog in Chinese.

Did Binance destroy FTX?

The failed deal between FTX and Binance has triggered many rumors and conspiracy theories. However, Binance’s CEO CZ keeps insisting that FTX killed itself.

The release in the Chinese blog repeats the official point of view: no healthy business can be destroyed by a tweet.

Temporarily halted USDC withdrawal

According to the blog post, the recent issues with USDC withdrawal were linked to the working hours of the US banks. Since Binance has not supported USDC since September, conversion between PAX/BUSD and USDC must go through a US dollar account in a bank in New York. The company claims it can only be carried out during the bank’s business hours, which causes delays.

Binance still claims user funds are supported by 1:1, and there is no liquidity problem. However, the exchange still needs to address the other withdrawal problems, such as the recent one with Monero discussed on Reddit

Insufficient reserves

The freedom to withdraw coins at any moment is guaranteed, and all user assets on Binance are supported 1:1m the exchange claimed. The platform reportedly withstood the test when withdrawals generated by mid-December FUD totaled $6 billion.

By citing this case, Binance has formally admitted the massive outflow of coins caused by Reuters’ report on the US investigation against the exchange. The agency claimed that the US Department of Justice was allegedly seeking to impose charges on Binance. 

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Julius Mutunkei

Julius is a blockchain reporter skilled at synthesizing all crypto-related information to make articulate texts easy for anyone to grasp. With a beginner's level certificate in Financial Analysis, Julius can read, interpret and report crypto findings to help investors exercise the best judgment in their decision-making process. When he is not caught up in the crypto frenzy, Julius likes playing a game of FIFA with his online buddies.