Binance drops majority of USD Coin reserves — Latest USDC news

Marcel Pechman7 hours agoBinance drops majority of USD Coin reserves — Latest USDC newsThis week’s episode of The Market Report explores the reasons why Binance let go of a majority of its USDC reserves and what it replaced them with.4712 Total views16 Total sharesListen to article 0:00Cointelegraph YouTube SubscribeJoin us on social networksIn the most recent episode of The Market Report, analyst and writer Marcel Pechman delves into the topic of crypto exchange Binance’s proof-of-reserves. This report reveals a significant decline in USD Coin (USDC) balances, plummeting from $3.4 billion on March 1 to a mere $23.9 million by May 1. 

According to insights from on-chain analyst Aleksandar Djakovic, this decline signifies that Binance utilized the $3.4 billion to procure 100,000 Bitcoin (BTC) and 550,000 Ether (ETH) during that period, totaling approximately $3.5 billion. The central question, as posed by Pechman, revolves around whether this investment was initiated by Binance users, thereby distancing Binance CEO Changpeng Zhao and the company from direct involvement.

Pechman disagrees with this conjecture, although he does acknowledge the possibility of the exchange accessing a portion of its USDC reserved for margin or derivatives trades. Nevertheless, he finds the notion of depleting the entire balance without client awareness or impacting the exchange’s day-to-day functions implausible.

Transitioning to the next segment of the show, Pechman delves into PayPal’s imminent launch of a stablecoin, announced on Aug. 7. This stablecoin, issued by Paxos Trust and built on the Ethereum blockchain, bears striking similarities to USDC and Paxos USD (USDP). Yet, Pechman highlights a distinguishing factor in the integration of the stablecoin with PayPal and Venmo.

Ultimately, Pechman concludes that there is no discernible benefit for end users in adopting this new stablecoin. Other stablecoins, he points out, offer both yield and a more extensive presence in the decentralized applications market.

Lastly, Pechman addresses the circulating rumors that Huobi executives within the cryptocurrency realm are facing arrest by Chinese law enforcement. He also raises questions about Tron founder Justin Sun and the peculiar drawdown of Tether (USDT) reserves from Huobi.

For further insights into these matters, tune in to the latest episode of The Market Report, an exclusive show available on the newly launched Cointelegraph Markets & Research YouTube channel.# Bitcoin# Cryptocurrencies# Altcoin# China# Huobi# Ethereum# Payments# Adoption# Cryptocurrency Exchange# Binance# Tether# Stablecoin# Market Update# Justin Sun# Market Analysis# USD CoinAdd reactionAdd reactionRelated NewsHow to earn passive income with peer-to-peer lendingBlackRock’s misguided effort to create ‘Crypto for Dummies’What will Bitcoin do if the Justice Department takes aim at Binance?Stablecoin dominance slides as market cap falls to near 2-year lows: CCDataPrice analysis 7/31: SPX, DXY, BTC, ETH, XRP, BNB, ADA, DOGE, SOL, LTCPrice analysis 8/2: BTC, ETH, BNB, XRP, DOGE, ADA, SOL, MATIC, LTC, DOT