The pressure is mounting for Binance, which has seen the SEC ban the issuance of its BUSD stablecoin. What continue to worry investors, who already tended to withdraw their cryptocurrencies from online platforms. We are indeed witnessing massive withdrawals of cryptocurrencies on Binance and Kraken since yesterday. Update on the subject.
$1 billion worth of stablecoins flew out of Binance
According to data shared by a Nansen researcher, the user exodus was particularly visible on Kraken, which was forced to shut down its staking services, as well as Binance, which saw a suspension of coin issuance. its stablecoin BUSD. The $1 billion worth of stablecoins that were pulled from Binance correspond to 6% of its reserves. It’s a big share, even for Changpeng Zhao’s empire.
Another notable point: $144 million of BUSD was “burned” by a user. That means that they were converted into dollars, arguably considered more secure than the stablecoin. Furthermore, Paxos deposit addresses have seen massive inflows of funds, which also suggests that many stablecoins will continue to be traded against USD.
Same scenario on the side of Kraken, which sees an even larger part of its reserves being withdrawn. Glassnode data also confirm this exodus since two days :
Total stablecoin withdrawals on exchanges (in red)
So we can clearly see that users suddenly feel chilly against these cryptocurrencies historically considered “stable”.
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The ambivalence towards stablecoins
Currently, however, there are opposite trends when it comes to stablecoins. Although the SEC is shaking the ecosystem of the United States, the enthusiasm for this type of asset does not seem – for the moment – to have started. We keep seeing the emergence of stablecoins in a more institutional framework, for example at commercial banks. In Europe, the arrival of the EUROe thus shows a desire to play the appeasement card with the regulators.
Another proof of this marked interest: the rating agency Moody’s would be working on a system for evaluating stablecoins, a particularly clear proof of the preponderant place they now occupy. Still, the SEC’s crusade could do damage, so we will continue to monitor this area carefully.
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Source: Nansen, press release
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