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Coinbase CEO Drops Bombshell: Binance Sold All Its USDC, Why?

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In a startling revelation during Coinbase’s Q2 earnings call, CEO Brian Armstrong revealed that Binance, the world’s leading cryptocurrency exchange, has liquidated its entire holdings of the stablecoin USDC. This unexpected disclosure comes as a surprise, prompting a flurry of speculation and analysis about Binance’s motivations and the potential implications for the stablecoin market.

“USDC market cap is up after Binance pulled out,” Armstrong reportedly stuttered during Coinbase’s earnings call. “The unexpected answer seemed to imply that crypto exchange Binance was a holder of Circle and that USDC is safer now that Binance no longer holds the stablecoin,” the media outlet Protos writes in an exclusive report.

The news is raising eyebrows, given that Binance was a substantial holder of USDC, a stablecoin owned by a consortium that includes Coinbase. However, the situation becomes more complex when we consider the current state of USDC.

The stablecoins market cap has been shrinking rapidly in recent months, plummeting from $44.5 billion at the start of the year to a mere $26.06 billion at press time. This comes on the heels of the Federal Deposit Insurance Agency’s intervention to prevent a bank run on Circle’s main banks, a move that effectively saved USDC.

Crypto Community Puzzled By Coinbase CEO’s Revelation

The crypto community is abuzz with theories about Binance’s motivations for this drastic move. Tether (USDT) CTO Paolo Ardoino offered a cryptic clue via Twitter, hinting at market pressures and the emergence of new competitors.

“Isn’t it interesting that USDT is being pressured down… and USDC, the main competitor that you would expect being gaining from the situation, is redeemed heavily nevertheless, while suddenly a competitor born 2 days ago is getting it all?” Ardoino wrote, presumably referring to Binance’s new stablecoins TUSD and FDUSD.

The latter was introduced just 2 days ago on Binance with a zero-fee promotion. As Bitcoinist Go to Source to See Full Article
Author: Jake Simmons

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