Over the past few days, Bitcoin (BTC) withdrawals from exchange wallets have increased, raising concerns in the crypto community about the security and future intentions of the market.
The Poloniex exchange has lost 50% of the BTC in its cryptocurrency wallet since the beginning of August. As of September 21, Poloniex wallet balances have dropped from 7,120 BTC to approximately 4,900 BTC and falling further. At the same time, Bitfinex cold storage wallet balances have dropped from 212,000 BTC to approximately 152,000 BTC. However, this is not just about Bitcoin, Twitter user Marshall Long recently wrote that $22M USDT was withdrawn from the Poloniex exchange wallet and transferred to the HuobiGlobal exchange. The Poloniex exchange has previously experienced significant sudden withdrawals, but this time the transfer of funds coincides with the uncertainty that exists in the market regarding the Tether(USDT) coin.
Speculation associated with these events suggests a lack of trust in exchanges that hold significant amounts USDT. However, Poloniex has a small USDT wallet and its problem is also related to the transfer of control to Circle. The exchange intends to change its operating model by delisting coins, as well as removing margin and lending products. It is possible that funds are being moved by traders who rely on these products. The introduction of the USDC stablecoin could also change Poloniex's trading and impact the movement of assets to other exchanges due to strict disclosure requirements and KYC procedures.
The Poloniex exchange continues to receive user reports of lost coins, frozen accounts, and withdrawal issues. Cases of interruptions in the operation of the exchange have also become more frequent. Additionally, Bitcoin trading volumes have dropped significantly, indicating that users are favoring newer exchanges. Expectations of further delisting are also putting traders off, as assets are removed without warning and often plummet in price.
According to https://cryptovest.com
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