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Breaking News: Delisting USDT in the European Region: Regulatory Upgrade or Bear Market Signal?
On March 4, 2025, Binance announced that starting March 31, it would delist non-compliant stablecoins such as USDT, FDUSD, TUSD, and DAI for users in the European Economic Area (EEA), triggering market concerns about a 'bear market signal.' However, when analyzing regulatory logic and market background, this adjustment should be viewed as an inevitable process of industry compliance rather than a sign of systemic risk. 1. Essence of the event: Regulatory adaptation under the MiCA framework. According to the EU MiCA regulations, stablecoin issuers must meet strict conditions such as capital reserves, transparency, and redemption mechanisms. The stablecoins delisted by Binance this time did not pass MiCA certification, while compliant assets like USDC and EURI were retained. This reflects an active cooperation with regulations by the exchange, rather than a proactive scaling back of business. Similar adjustments have precedent: in 2024, when Binance US delisted TRX and SPELL due to compliance issues, it also retained TRC-20 USDT and USDC, indicating that regional policy adjustments are a norm in the industry.
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Recently, the Bybit exchange suffered a hacker attack, with approximately 514,000 ETH (worth $1.429 billion) stolen through the manipulation of the multi-signature cold wallet smart contract logic, making it one of the largest single fund transfer events on the Ethereum chain. This incident not only exposed the security risks of centralized exchanges but also sounded the alarm for the security of the Ethereum chain ecosystem.
The hackers distributed the massive assets to 49 addresses and laundered the funds through DEX exchanges, mixing tools, and other means, significantly increasing the difficulty of tracking. Although the security company Beosin promptly marked the involved addresses and activated KYT tools to monitor the flow of funds, the existing monitoring systems still appear inadequate in dealing with such decentralized laundering operations.
Additionally, the incident triggered fluctuations in on-chain staking assets and stablecoins. The stolen stETH and cmETH were batch unstaked or transferred, potentially causing short-term liquidity imbalance in on-chain staking pools. The panic associated with the incident also affected the stablecoin USDe, causing it to briefly decouple from the dollar, reflecting the vulnerability of the on-chain stablecoin anchoring mechanism during extreme events.
This incident once again highlights the importance of blockchain security. Exchanges, project parties, and users need to improve security awareness and strengthen security measures. At the same time, on-chain monitoring and tagging systems also need continuous upgrades to cope with increasingly complex hacking methods. Only through joint efforts can we build a more secure and reliable blockchain ecosystem.