Binance is a well-known name in the cryptocurrency world and this is one of the biggest exchanges in the world. FTX drama is not still not over and finally, the founder is arrested which I think should have happened already. Whatever is happening in the market these days is not for the first time and I have seen multiple similar events in the past. Lord of negativity is moving around the Binance exchange and because of this, the BnB coin price has also dropped by almost 8 to 10%.
It is difficult to predict now what will happen in the market or with the exchange but I believe the exchange will be able to come out of this situation. File things are not clear as of now so it is recommended not to keep the money idol in the exchange if there is no trading activity is going on. In any situation, we can't forget that not your keys then it's not your cryptocurrency.
Binance halted USDC withdrawal
Binance exchange has halted the withdrawal for USDC and this stablecoin is managed by Coinbase. Recently we have seen a Twitter post by the coinbase exchange where they are encouraging people to convert USDT to usdc with no conversion fee on the transaction. Needless to mention that USDT is the biggest stable coin as of now in the market and this type of announcement-making in the public domain is not good. Instead of people converting with no transaction fee they should make usdt more valuable and rewarding. If this happens then obviously more people will prefer to convert their usdt to usdc. While the recording factor is important but trust is another thing to consider for many people in the crypto market.
Self-custody is still encouraged
Self-custody is the best solution to avoid any unnecessary issues on the holding but we also need to understand that for the trading purpose we need to keep some funds in the exchange wallet. This crypto market is still not matured and there are many things that are still under development so we cannot rely on one thing as of now. What I am trying to say is that we cannot depend completely on the hardware wallet as well as on the exchange wallet because both have got different use cases. We cannot get all the services with either one of them and this is why having a balanced approach is very important.
Binance is a leading exchange and it has a lot of things available on its platform including stake to earn and launchpad. I am pretty sure that a lot of people are using the services to generate some passive income but this time when there is a lot of negativity around it is recommended to take out the funds and keep them in self-custody. Maybe we can deposit back later once things are back to normal but in the current situation its better to keep the funds out of the binance wallet.
I have got my hardware speech and will be losing the same to withdraw my friends on the exchange shortly once the initial setup for the wallet is done. There is a not going on in the market and even more, eyes are looking at the Binance exchange to see how they are going to deal with the situation and what will be the outcome. If they manage this situation and turn out to get the clean chit then it will help them to gain the trust more. I am keeping my fingers crossed and eyes open to see how things are unfolding and will plan further action accordingly.
Thank you