The top crypto exchange Coinbase has reportedly burned above 4.7B USDC in the recent 24 hours. The respective news was revealed by the blockchain security firm “PeckShield.” It stated that the crypto exchange sent up to 4.7B USDC tokens to Circle for burning. This signifies that the consumers are exchanging their crypto assets for fiat currency.
Coinbase Burns up to 4.7B USDC Tokens Just in Twenty-Four Hours
The decision was taken by the consumers to convert the crypto tokens to fiat points toward a possible reason. It deals with the prohibition on crypto staking from the US Securities and Exchange Commission (SEC). Nonetheless, as specified by 0xScope, another thing took place in addition to the delivery of 4.5 USD from the crypto exchange to Circle. According to it, Coinbase also obtained up to 4.7B USDC. The net flow of USD on the Coinbase crypto exchange is nearly $330 million during the previous 24 hours.
Shares of the Crypto Exchange Drop by 8% after CEO’s Comments on SEC’s Stance on Crypto Staking
Apart from that, recently, more than eight percent has taken place in the shares of Coinbase, according to the data provided by Nasdaq. The chief executive officer of the well-known crypto exchange has recently voiced concerns over the current approach being followed by the regulators. He mentioned that, if a restriction is imposed on crypto staking in the United States, it will pave the way for some unexpected consequences.
The decline witnessed in the shares appears to be caused by the comments made by the CEO, as stated by Needham’s John Todaro. He added that though a minor proportion of the cumulative revenue of COIN is credited to staking, it is crucial to diversify the crypto exchange’s revenue. At present, up to 2M ETH tokens are staked on the crypto exchange.