Whales Pull This Token From Exchanges After The Latest Developments: They Withdrawn $1 Billion In 1 Day!

Closure of Silicon Valley Bank and Silvergate Bank, two federally insured members of the Federal Reserve System. cryptocurrency causing ripple effects in the ecosystem.

However, the situation of the USDC token distributor Circle, which is estimated to have cash in these banks, is also particularly curious.

We reached out to Circle (USDC) to ask if they were exposed to SVB but they did not comment. – The Block reporter

— Bitcoin System (@bitcoinsystem) March 10, 2023

Deloitte’s Circle accountant report, released March 2, stated that Circle held cash at the following banks as of January 2023: Bank of New York Mellon, Citizens Trust Bank, Customers Bank, New York Community Bank, Division of Flagstar Bank, NA , Signature Bank, Silicon Valley Bank, and Silvergate Bank.

Large Amount Of USDC Tokens Withdrawn From Exchanges

According to Circle’s transparency document, there are 43.1 billion USDC in circulation and 43.2 billion USD in reserves. $11.4 billion, or 26% of all USDC reserves, is held in cash at Reserve Banks such as Silicon Valley and Silvergate.

USDC has been the token with the largest negative net flow from centralized exchanges among the three parties in the past 24 hours, according to on-chain data from blockchain analytics firm Nansen. These include all “smart money wallets”, all funds, market makers and all wallets.

Nansen considers wallets “smart money” that meet at least one of several criteria, such as earning more than $100,000 as a liquidity provider/miner on Uniswap and making multiple profitable transactions on a decentralized exchange (DEX) in a single transaction through mechanisms called flash credits. .

In the past 24 hours, all smart wallets have flown 68 million USDC from centralized exchanges. Nansen-labeled funds and market-making addresses, which include Genesis Trading, Wintermute, and Jump Trading, attracted $79 million. All wallets have withdrawn approximately $1 billion USDC in total from centralized exchanges.

As of this writing, 3 billion USDC has been withdrawn from centralized exchanges in the past seven days.

*Not investment advice.