David – Cryptocurrency Expert
According to Santiment, stablecoins have caused a rise in cryptocurrency exchange withdrawals
These withdrawals were significantly influenced by the FTX scandal
The liquidity of exchanges is negatively impacted by this large volume of withdrawals
The FTX meltdown's highly affects crypto market investment space. As a result, according to data from the market intelligence company Santiment, individuals are beginning to take matters into their own hands.
Dan Held, Changpeng Zhao, and Michael Saylor, three well-known figures in the cryptocurrency sector, all suggested that users exercise self-custody. They said that Bitcoin on an exchange is essentially entirely at the exchange's mercy and is susceptible to any issues that may arise. Stablecoin withdrawals from exchanges have surged, according to statistics from Santiment, suggesting that most users paid attention to this warning. According to the indicators for supply outside of exchanges, there have been sizable exchange outflows in the previous few days for USDC, USDT, and BUSD.
Although interest rate increases may have had an influence on the high stablecoin withdrawal rates at the moment, many people think that the FTX controversy also had a significant part in these withdrawals. Unfortunately, this large volume of withdrawals has a detrimental effect on exchange liquidity. As more people withdraw their money from exchanges, there might soon be a serious scarcity of tradable assets on the market.
To avoid such risks crypto investors should consider forwarding their assets to cold wallets and use exchanges for swaps/buys and sells only. This can be done with BCBitcoin a cryptobroker whose most notable service is to buy and sell cryptocurrency. Moreover, as a platform, BCBitcoin, provides guidelines for people interested in cryptocurrency. You can find various articles, guides for different crypto projects, wallets and how to use them. Remember, if you are not confident to trust any of the platforms, first check the customer reviews, which in BCBitcoin case, are outstanding. Keep your crypto assets safe and sound.