Binance Sells Off USDC For BTC, ETH
Following the failure of Silvergate Bank, Binance’s latest proof-of-reserves (PoR) report has drawn criticism due to its declining USDC reserves.
Arguments on social media have been sparked by Brian Armstrong’s witty remark at the company’s most recent earnings call, which added fuel to the fire of the report that was released on August 1 to demonstrate transparency in the exchange’s dealings with user assets.
According to the report, between March 1 and April 1, 2023, Binance’s USDC balance decreased from $3.4 billion to $23.9 million. This decline was due to the implementation of the USDC to Binance USD swap in September 2022, which reduced USDC issuance.
Binance converted its USDC reserve to Ethereum and Bitcoin after the collapse of Silvergate Bank and stablecoin de-pegging. The exchange’s overall health is safe, as its net balance covers all user assets, despite controversy surrounding USDC selling.
(With inputs from Shikha Singh)
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