A black swan event like the FTX crash has rocked the entire crypto market. He brought down many cryptocurrencies with it. Between December 12th and 14th, Binance saw more than $6 billion in withdrawals. Obviously, after what happened at FTX, users are skeptical about Binance. Due to this new fear, investors are migrating their investments from Binance USD to the Snowfall Protocol (SNW).
This new crypto offers you incredible returns and a safe haven asset that is not found with Binance USD. Let’s take a look at this interesting development.
What is Binance USD?
Binance USD is the stablecoin of the Binance exchange. It’s pegged to the US dollar, so it claims to be equal to $1, but given the volatility of the market, it keeps moving. Finally, Binance USD is an unsecured asset in an unregulated market. Binance USD must always be pegged to $1, so there isn’t much room for traders to make profits.
According to a recent report by Ethscan, 85% of Binance’s total USD supply is held by 5 addresses. This again raises concerns about monopolization, which is risky for any investor wishing to park their capital.
Investors Move from Binance USD Following Collapse of FTX?
After the FTX crash, Binance saw more than $6 billion drained from its platform. Most of these assets were held in Binance USD coins. After the FTX collapse, cryptocurrency investors were forced to reevaluate how Binance manages their client funds. Shocking, as a multi-year US government investigation into Binance could result in charges of violating money laundering laws. Binance USD is currently in a precarious situation.
Binance is pushing to convert all stablecoin and USD deposits on its exchange to Binance USD. That doesn’t go down well with many investors either. It is also important to note that Binance has created another token called BNB that resides on its blockchain. Binance is said to be using the token as collateral for loans. Of course, Binance denies the report, but if it’s true, it comes dangerously close to what FTX did with its FTT tokens.
Snowfall Protocol (SNW) Emerges As Preferred Destination for Users?
Snowfall Protocol (SNW) is exactly what investors are looking for right now. It is a simple coin with a strong interoperability use case. It is fully decentralized and its developers have a clear vision of how it should evolve. Additionally, Snowfall Protocol (SNW) is completely transparent in its operation and offers incredible opportunities for traders to participate. Demand for Snowfall Protocol (SNW) has remained high since pre-sale.
Its value has increased from $0.005 in the pre-sale to $0.1 in phase 3 of the sale. It is expected to generate returns of between 1,000% and 5,000% for its early investors. Users seem to prefer the Snowfall Protocol (SNW) for many reasons, including its high growth prospects, resilience in a bear market, incredibly bright future, and clean operation.
Presale: https://presale.snowfallprotocol.io
Website: https://snowfallprotocol.io
Twitter: https://twitter.com/snowfallcoin
