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

by ww520 4y ago

jqpabc123 4y ago
Either way, it's money leaving the exchange. This is what the "halt" is attempting to address if I read it correctly. The "dark side" of crypto is being made painfully obvious for all to see.
4pkjai 4y ago
The crypto coins. Binance is a Crypto to Crypto exchange. You can't deposit or withdraw USD from Binance.
- schemescape 4y ago
  Any idea why a New York bank is relevant then (per CZ)?
  - stevehawk 4y ago
    is it relevant? or is it a red herring.
  - jqpabc123 4y ago
    Probably because the USDC is being held in a real bank account controlled by some unknown 3rd party who lives in some country without an extradition treaty. Gives you a warm, fuzzy, secure feeling that everything is perfectly safe doesn't it?
    - twelve40 4y ago
      how can USDC be held in a real bank account? doesnt make sense
      - flamemyst 4y ago
        The backing of USDC held in real bank account. They need to move real USD to Circle bank to mint USDC.
      - jqpabc123 4y ago
        No, it doesn't --- unless they redeem them for USD. I doubt there is anything preventing Binance from doing whatever they want with the coins you place in their possession.
- tromp 4y ago
  These Binance web-pages suggests otherwise: [1] https://www.binance.com/en/support/faq/how-to-buy-cryptos-with-usd-360036928272 https://www.binance.com/en/support/faq/how-to-buy-cryptos-wi... [2] https://www.binance.com/en/fiat/deposit https://www.binance.com/en/fiat/deposit
  - 4pkjai 4y ago
    My mistake!
mypastself 4y ago
I assumed people were moving USDC to other wallets (most likely other exchanges). But now that you mention it, I’m not so sure. Because one could signify mistrust in the token, the other in the exchange.
22c 4y ago
These seem to be the most relevant tweets: https://twitter.com/cz_binance/status/1602579499903852544 https://twitter.com/cz_binance/status/1602579499903852544 https://twitter.com/binance/status/1602708590271385600 https://twitter.com/binance/status/1602708590271385600 I'm not sure why USDC withdrawals were paused rather than trades on USDP/USDC and BUSD/USDC pairs temporarily disabled. I assume there were trade-offs or technical reasons why it was done this way.

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

by ww520 4y ago

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

Either way, it's money leaving the exchange. This is what the "halt" is attempting to address if I read it correctly. The "dark side" of crypto is being made painfully obvious for all to see.

4pkjai 4y ago

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

schemescape 4y ago
Any idea why a New York bank is relevant then (per CZ)?
- stevehawk 4y ago
  is it relevant? or is it a red herring.
- jqpabc123 4y ago
  Probably because the USDC is being held in a real bank account controlled by some unknown 3rd party who lives in some country without an extradition treaty. Gives you a warm, fuzzy, secure feeling that everything is perfectly safe doesn't it?
  - twelve40 4y ago
    how can USDC be held in a real bank account? doesnt make sense
    - flamemyst 4y ago
      The backing of USDC held in real bank account. They need to move real USD to Circle bank to mint USDC.
    - jqpabc123 4y ago
      No, it doesn't --- unless they redeem them for USD. I doubt there is anything preventing Binance from doing whatever they want with the coins you place in their possession.
tromp 4y ago
These Binance web-pages suggests otherwise: [1] https://www.binance.com/en/support/faq/how-to-buy-cryptos-with-usd-360036928272 https://www.binance.com/en/support/faq/how-to-buy-cryptos-wi... [2] https://www.binance.com/en/fiat/deposit https://www.binance.com/en/fiat/deposit
- 4pkjai 4y ago
  My mistake!

mypastself 4y ago

I assumed people were moving USDC to other wallets (most likely other exchanges). But now that you mention it, I’m not so sure. Because one could signify mistrust in the token, the other in the exchange.

22c 4y ago

These seem to be the most relevant tweets: https://twitter.com/cz_binance/status/1602579499903852544 https://twitter.com/cz_binance/status/1602579499903852544 https://twitter.com/binance/status/1602708590271385600 https://twitter.com/binance/status/1602708590271385600 I'm not sure why USDC withdrawals were paused rather than trades on USDP/USDC and BUSD/USDC pairs temporarily disabled. I assume there were trade-offs or technical reasons why it was done this way.