On Monday morning, during a period of intense activity, Binance, the world’s largest crypto exchange, by volume, suspended, the withdrawal of Tether (USDT) a stable coin. Binance’s page for Tether, had displayed “wallet maintenance, withdrawal suspended”, and a customer service administrator of the platform has said, on the Telegram channel, that this suspension had been caused by a “network congestion” on USDT’s part. In another message, earlier Monday, it was elaborated that “maintenance [is] due to network congestion. Expected date/time cannot be provided. We are fixing it as soon as possible.”
The suspension of USDT occurred twice on Monday, where it was suspended earlier in the day, and then customers were able to resume withdrawals around 11:33 UTC, until it was suspended again, roughly 15 minutes later.
However, withdrawal functionality has since been returned. Binance’s move to apparently delist USDT has been corroborated by them as rumours. Founder and CEO Changpeng Zhao, in a tweet on Monday called this allegation “a single photoshopped fake announcement”.
CoinDesk confirms that USDT’s price has dropped to an 18 month low of $0.925 on Monday morning. This is contradictory to their long-standing statement and assurance that 1 USDT is always equivalent to 1 USD. However, before this suspension on Monday, the Bitcoin-USDT trading pair had hit a high of 7,680 USD. At press time Bitcoin is trading at 6,475.51 USD.
Binance has the largest store of USDT tokens with more than 768.5 million in reserves, according to a wallet rich list posted on Tether.to.