Stablecoins worth $248 million leave Coinbase as the public disputes exchange liquidity problems
Rumors on Friday evening have shown that Coimbatore may face liquid problems after soaked emails and the program stops. This is not an easy decision or not slowly made, but Business Insider reported that it is not easy to do, but due to the Cryptocurrency market and the rest of 2022, Coonbace cannot continue to maintain traffic. Some have taken them on Twitter, and this solution concerns liquid problems for the exchange of high levels of the United States. Curt Wockert Jr., CEO of CoinGeek, wrote on Twitter that the suspension of the project, along with other decisions made by Coinbase in recent weeks, indicates that a “money crisis” is breaking out.
According to data from the CryptoQuant network, on July 15, about 50% of Coinbase Pro’s stable currencies left the exchange. The total cost is about $ 248 million. Coinbase’s stablecoin release percentage was significantly higher than other exchanges like Binance. Only about 1% of stablecoin reserves left Binance during the same period, but those same tokens were worth less than $ 300 million. Comparing the value of stablecoins on the two exchanges, the decrease of stablecoins on Coinbase contrasts with Binance. In January 2022, the value of stable currencies on Coinbase reached $ 1.2 billion, but they are currently worth only $ 284 million. In Binance, the value has been trending upwards since 2019. These data paint a less clear but troubling picture when comparing the bitcoins available in each exchange. Coinbase has seen a steady decline in bitcoin holdings, while Binance has grown.
Including all the exchanges tracked by CryptoQuant, the Coinbase chart follows the industry trend overall. The decline of Bitcoins held at Coinbase may be due to the growing popularity of storing cryptocurrency in non-guarded (non-host) wallets. Jungle Inc, a cryptocurrency maker, also encrypted that Coinbase has “$ 6 billion in cash” and significant holdings of cryptocurrency. However, his conviction began and ended with the same post confirming that he had withdrawn all funds from the exchange. After the bankruptcy of Voyager and Celsius this year, the risk of exchanges could be high.
Read more: What’s Next for Bitcoin After One Month Of Negative Funding Rates?