News

Stablecoins Like USDT and USDC  Moving out of Gemini And Major Exchanges! What’s Next?

Author: Sahana Vibhute

Sahana Vibhute right arrow

Author

A passionate cryptocurrency and blockchain author qualified to cover every event in the crypto space. Researching minute occurrences and bringing new insights lie within the prime focus of my task.

  • author facebook
  • author twitter
  • linkedin

news-image
Story Highlights
  • The institutions and the retail investors appear to be in deep distress as the market sentiments are worsening every new day

  • With a drop in stablecoin reserve, crypto space may experience an extreme liquidity crunch in the coming days

The impact of the FTX collapse has been spreading significantly over the other platforms as more number of them are restricting users’ activity, failing to carry out their business as usual. While some of the platforms who denied earlier have admitted to their platform’s exposure to the FTX crisis. 

Therefore, many such platforms are soon expected to open up about their financial stands and exposure to FTX. 

In a recent update, the world’s largest exchange Gemini owned by the Winklevoss brothers appear to b in deep trouble as they halt user withdrawal. Meanwhile, they deny being exposed to the Genesis crisis but halting user withdrawals says it all. Hence the larger institutions and maybe whales are pulling out of the exchange. 

As per the report, the Gemini staking service may soon shut down and this has compelled the users to quit the platform. The platform witnessed the largest withdrawal movement ever as stablecoins worth more than $300 million exited from the Gemini reserve. 

On the other hand, the major stablecoins are also moving out of the exchanges. As per a popular on-chain analytical platform, Santiment, a huge drop in USDT, USDC & BUSD holdings in the reserves of the exchanges has been recorded following the FTX collapse. 

With the recent FTX fallout, more money is flowing out of the crypto space. It is quite evident that the large institutions or even the whales may have transferred their holdings from the exchanges and moved them to self-custody.  This is believed to have a larger impact on the crypto space as stablecoins are believed to be the highest-traded entity on daily basis. 

Show More

Was this writing helpful?

No Yes

Sahana Vibhute

A passionate cryptocurrency and blockchain author qualified to cover every event in the crypto space. Researching minute occurrences and bringing new insights lie within the prime focus of my task.

Related Articles

Back to top button