Binance has announced that it is temporarily pausing withdrawals on USDC as it coordinates a token swap today. Additionally, it was announced by Tether that Binance would also be coordinating a chain swap.
The two processes are different but arrived after a tumultuous period for the cryptocurrency exchange platform. Arising stories on potential investigations into the exchange, as well as the downfall of competitor FTX, have not done well to quell the troubles of the market.
Binance Coordinating Chain and Token Swap
The prominent cryptocurrency exchange platform has announced that it will execute a token swap today. The news was officially reported by Binance, who shared that they are pausing withdrawals of USDC while the token swap takes place.
The news came in a tweet that stated that the token swap would pause withdrawals of USDC. Subsequently, it assured clients that both USDT and BUSD withdrawals would remain unaffected by the swap. Conclusively stating that withdrawals of USDC would be made available as soon as the swap was conducted.
A tweet from Binance CEO, Chanpeng Zhao, noted that the delay was caused to logistical concerns surrounding the increase in USDC withdrawals. Moreover, the cryptocurrency exchange needed to wait for the opening of the bank available to swap.
Additionally, Tether announced a chain swap they were coordinating with Binance. In the tweet, Tether stated that the chain swap would be converting Tron to Ethereum ERC20, for 3 billion USDT. Conversely, the report assured that the Tether total supply would remain unaffected.
A chain swap is the crypto practice of moving a digital asset from one blockchain to another. Tether stated that the maneuver would “…allow traders to obtain access to various blockchains that support the cryptocurrency that they are holding,” in a statement.