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Binance drops majority of USD Coin reserves — Latest USDC news

Binance’s Proof-of-Reserves

In the latest episode of The Market Report, Marcel Pechman examines the crypto exchange Binance’s proof-of-reserves. His report reveals a significant decrease in USD Coin (USDC) from $3.4 billion on March 1 to $23.9 million by May 1.

On-chain analyst Aleksandar Djakovic suggests that Binance used the $3.4 billion to purchase 100,000 Bitcoin (BTC) and 550,000 Ether (ETH), amounting to $3.5 billion. Pechman questions whether this investment was made by Binance users or Binance CEO Changpeng Zhao and the company itself.

Pechman doubts this theory, however he does consider the possibility that the exchange accessed a portion of its USDC for margin or derivatives trades. Regardless, he finds it unlikely that the entire balance could be depleted without clients knowing or affecting the exchange’s day-to-day operations.

PayPal’s Stablecoin

Pechman then moves on to discuss PayPal’s imminent launch of a stablecoin, announced on Aug. 7. This stablecoin, created by Paxos Trust and based on the Ethereum blockchain, is similar to USDC and Paxos USD (USDP). Pechman points out that the stablecoin is integrated with PayPal and Venmo, which sets it apart from the other coins.

Cryptocurrency Stablecoin Benefits and Rumors

Pechman’s research concludes that the new stablecoin does not provide any tangible benefits to end users. He further points out that other stablecoins offer both yield and a larger presence in the decentralized applications market.

The Market Report, now available on the Cointelegraph Markets & Research YouTube channel, delves deeper into the rumors that Huobi executives are facing arrest by Chinese law enforcement, as well as and founder Justin Sun’s involvement with the drawdown of Tether (USDT) reserves from Huobi.

Additionally, the show covers the growth of and adoption, as well as the potential of and other insights the cryptocurrency space. Finally, the show examines the benefits of and .

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