As the Paxos-BUSD drama continues to unfold, Binance withdrawals have surged. The world’s leading cryptocurrency exchange has seen a significant increase in the number of users withdrawing their funds as they look for safer alternatives amid allegations that Paxos is manipulating its stablecoin.
The recent controversy began when Bitfinex CTO Paolo Ardoino accused Paxos of using wash trading techniques to artificially inflate BUSD’s market capitalization by over $50 million. This allegation caused many traders and investors to become wary of holding assets on exchanges like Binance that use PAXOS-backed tokens such as USDT and USDC. As a result, there has been an uptick in withdrawals from these exchanges with some estimates putting it at over 10%.
Despite this surge in outflows, overall volumes on Binance remain strong with daily trades surpassing $6 billion last week – more than double what it was before the news broke out about possible manipulation involving PAXOS-BUSD stablecoins . It appears that most users are simply taking precautionary measures by moving their funds away from potentially risky assets rather than abandoning crypto altogether which is good news for both short term traders and longterm HODLers alike .
For now though , we will have to wait until further investigations into PAXOS activities are conducted before any definitive conclusions can be drawn regarding potential manipulation or other illicit behavior . In the meantime , those looking for safe havens should take extra precautions when dealing with cryptocurrencies backed by third parties like USDT or USDC who may not always act above board .
