The world’s largest crypto exchange, Binance,on Tuesday announced that it was suspending withdrawals of stablecoin USDC to enable it to conduct a “token swap.”
The decision was made in response to significant withdrawals from users who were concerned about Binance’s stability in light of the FTX scandal.
In a statement issued via Twitter, Binance explained that the token swap will enable customers to exchange cryptocurrencies without using fiat money.
“Binance is conducting a token swap involving $USDC. As a result, $USDC withdrawals are temporarily paused.
“$USDT & #BUSD withdrawals are available and unaffected. $USDC withdrawals will reopen once the token swap is completed.” Binance tweeted.
Binance CEO Changpeng Zhao previously tweeted that the exchange has seen an increase in withdrawals of USDC, a stablecoin known for being one-to-one with the US dollar.
This development has generated mixed reactions from its users, some who questioned the decision as against others who expressed their support for the platform.
@Kalyx Tutler tweeted, ‘Binance is trying to cover up a huge transaction in corresponds with the said token swapping. If you will going to look at the address of the token, there’s this one transaction that deposited to binance address to which they can’t disclose ‘cuz this is their ‘hidden’ payment.’
@Kiste tweeted, “Binance is also desperate because it’s about to cause a credit crisis.”
@Imom_Ghosh tweeted, “@binance @cz_binance Binance server is down again. Without any prior notification. This is probably the exact thing they are going to do if they get caught practicing financial malpractice. Same as FTX”
@Josevega tweeted, “Lmao, this is about to get ugly for a lot of people who don’t move now.”
@4kk07 tweeted,”Binance will remain number one. CZ has gone through very sharp turns in previous years and was able to overcome it, and it is now at the top among all its competitors. Thank you, CZ.”
@TheMartinMTM tweeted, “Binance is the last stronghold crypto industry we must stand together ! For crypto !”