Binance, Following the crackdown on BUSD and the SEC investigationwill use in its ecosystem looking for a new stablecoin?
The cryptocurrency market has been determining the direction of movement for years with the effect of news flows. While negative news on the agenda reveals instant price drops, news such as partnership can put the possibility of a rapid rise on the table. The recent news feed has been the BUSD stablecoin actively used in Binance’s ecosystem.
Amid all these pressures and investigations, how does Binance plan to fill the ecosystem gap on the BUSD side? Four different possibilities on this question, As Coinkolik, we have compiled it for you.
Why Did Binance Leave Many Altcoins Only on BUSD?
Binance USD ( BUSD ) from the very beginning, it can be observed that the events go back to the FTX period. FTX, which went bankrupt towards the end of last year, had a devastating effect on the crypto market.
After FTX went bankrupt, BinanceCEO Changpeng Zhao made striking statements. Zhao explained that they are now the largest and therefore will be subject to a lot of attacks. BinanceMonths after the CEO’s statement, dozens of negative news fell on the stock market.
Binance has made moves to some altcoins, arguing that it is trying to maintain its liquidity balance after FTX’s bankruptcy. Many altcoins listed on the exchange have been delisted from various parities and are only traded in the BUSD parity. This made Twitter think that the BUSD bull might be experienced.
SelfKey ( KEY), Aero ( AERGO), Cream Finance ( CREAM), altcoins as fiat currency only BUSD offers trade opportunities. This situation, BUSDIt serves to increase the volume ratios on the side.
But could this step taken by Binance be an effort to build volume for BUSD? BinanceCEO Changpeng Zhao Could he have foreseen what could happen? Looking at all these questions, it can be observed that Binance is trying to be prepared for the entire wave of FUD going forward. BinanceThe CEO said it often on Twitter. “4”He reveals this with his sharing.
Binance, Paxos and SEC Triangle: Goodbye BUSD!
With FTX going bankrupttogether is the biggestimplying at every opportunity Binance, is also struggling with various FUDs spreading globally.
In the past months, Binance has made various moves to further increase its dominance in the industry. The exchange, which created a billion-dollar fund to recover the collapsed market due to FTX, on the other hand, brought proof of reserve for users. Trying to restore lost trust in the crypto industry Binance He spent months of hard work. However, the stock market had to be questioned many times in all its moves. BinanceCEO Changpeng Zhao stated that such actions should be considered normal since they are the biggest.
The popular crypto exchange faced a new news flow just as the processes were settled. The SEC, the most powerful regulator in the USA, is Binance’s ecosystem product. BUSDtook action for it. SEC, BUSD announced that it is investigating its issuer Paxos. The fall of this news is on the side of Binance FUDcaused the wave to spread. BinanceCEO changpeng Zhao stated that they are not an issuer on the BUSD side, they are only used in the ecosystem. an independent issuer Paxos, Now BUSDannounced that it will not print and terminate this service.
This news feed is Binance’s ecosystem product, the third largest stablecoin by market cap. BUSD caused the declines. The stablecoin, which is Depeg, has also faced various delists. Finally, Coinbase recently announced that it will delist BUSD on March 13. Binance, which seems to have given up on BUSD, has been the subject of curiosity about what kind of move it will make going forward. It has been stated in the crypto community and many investors that Binance will create or choose a new ecosystem stablecoin. So what can Binance do in a possible new stablecoin move?
Binance Is On The Agenda With Possibilities About New Stablecoin
Popular cryptocurrency exchange Binance, BUSDAfter the latest news on the side, it arouses curiosity with its forward move.
Delisting of BUSD on many exchanges, BUSD issuer Paxos stating that it will cease services, of the SECconsiders BUSD an unregistered security and Binance There were remarkable developments when CEO Changpeng Zhao gave up on BUSD. These developments also attracted attention due to the moves that Binance can make on a new stablecoin. So, what possibilities is Binance pregnant with?
1- Terra Classic USD (USTC)
Terra, one of the most popular ecosystems of a period, had a $ 40 billion drop due to its algorithmic stablecoin structure. This strong decline also caused the beginning of a bear market in the crypto industry. Terra USD, a product of the Terra ecosystem ( TOP), Terra Luna ( LUNA ) was depeg due to its algorithmic link with over 1 dollar UST fell to the level of $0.01, creating a huge wound in the sector.
The Terra ecosystem, which was restructured after the bad scenarios experienced, managed to get the support of Binance. Binance has signaled that it stands behind the renewed Terra coins. Especially Terra Classic ( LUNC ), managed to attract attention again with the burning model launched by Binance. On the other hand, Terra Classic USD ( USTCThe stablecoin, which was restructured with the name ) It was evaluated on the possibility that it could be pegged at the $1 level.
After Binance’s troubles with BUSD and the indirect loss of its ecosystem stablecoin, rumors of a new stablecoin began to spread. New Binance stablecoin featured by the crypto community USTC it happened. Many crypto influencers have claimed that USTC will now be actively used by Binance. Following the emergence of these allegations, USTC experienced an increase of more than 30 percent.
However, Binance and BinanceCEO Changpeng Zhao, of USTC It has not made an official statement that it will be an ecosystem stablecoin. Looking ahead though, Binance’s quest for stablecoins USTC is also on the table. One of the most popular stablecoins with a cheap market cap USTC , stands out as having the potential to be Binance’s choice. Nothing definite, but USTC, of BUSDcan take its place.
2- True USD (TUSD)
Earlier in the day, WuBlockchain shared a bombshell news about Binance. WuBlockchain stated that Binance has minted $130 million in True USD (TUSD). Following this news, TrueFi, which is behind TUSD, has increased by nearly 50 percent.
Binance’s TUSD after $130 million printing has risen to the top five stablecoins by market capitalization. Current market value of TUSD in the last week $1.12 billion, an increase of 15 percent. . According to WuBlockchain, Binance says it will work with more stablecoin partners.
Binance, which is almost without a stablecoin with the blow on the BUSD side, TUSD He attracted attention with this move on his side. The new stablecoin in the Binance ecosystem TUSDWith this move, the possibility of being
However, on the other hand TUSD , exported by TrueFi. This situation, of BUSD It’s the same as being exported by Paxos. Struggling with the SEC’s investigations, Binance may not enter a similar stablecoin move.
Yet a $130 million TUSDFor Binance issuing, the new stablecoin choice TUSD will continue to be discussed. In case of such a situation, BUSDthe guarantees on the to TUSDthought to be transferable.
3- USDD
Tronfounder Justin sunlaunched by the company and attracted great interest at first. USDDis among the newest stablecoins.
Tronwith its network and Huobi The strong stablecoin, backed by its stock market, also struggled with “what if” questions after the Terra crisis. sun, of USDD He stated that he received strong collateral support and that it would not be possible to become a depeg. However USDD In the past months, it had become depeg by straying from 1 dollar. Again USDD, stands out as the seventh largest stablecoin by market capitalization, thanks to the strong support behind it.
During the times when FTX went bankrupt, many crypto institutions cooperated. During minor liquidity problems on the Binance side, A move came by Tron founder Justin Sun.Sun to support Binance’s liquidity transferred millions of dollars of assets.
Sharing on social media, Sun added that he always stands by Binance. Taking the Huobi consultancy Tronfounder, He attracted attention with his support to Binance.
BinanceCEO changpeng ZhaoAnd Tronfounder Justin sun The bilateral relationship between the two of them brought forward that they can support each other as collateral. Having survived the FTX period together, the duo may also act together in a new wave of FUD. In this case, Binance may make a new move for USDD, which it has not yet listed on its exchange. Changpeng Zhao, who is likely to close the gap on the BUSD side, with the news of a new listing, it can put USDD on its stock market.
The fact that USDD has a market value of 700 million dollars, strong supports behind it and not having an algorithmic structure are among the most important structural features. Although Binance fills the gap of BUSD with USDD, it will act in partnership with Justin Sun. If the stock market on the SEC’s radar makes this move, it can display a credible image and thus end the pressure.
4- Binance Can Create A New Stablecoin
Popular cryptocurrency exchange Binance has also signaled that it can create a new stablecoin to replace BUSD, which it says is not an issuer.
Binance will have to turn to other stablecoins as it has given up on BUSD, which it indirectly uses. Strong teams on the side of Tether (USDT), USDC and Dai are in conflict with Binance’s vision. Considering the best in the crypto industry, Binance may not prefer to use strong stablecoins such as USDT, USDC and Dai.
Looking at the latest possibility of our news, Binance’s creation and issue of its own stablecoin is also on the table. Since the SEC’s biggest focus is on unregistered securities, Binance will have to register its stablecoin.
Being familiar with this situation, USDC manages to maintain its collateral power as a result of its cooperation with traditional banking actors and regulatory agencies. In the event of creating a new ecosystem stablecoin, Binance can centralize the necessary collateral under the SEC’s oversight, rather than providing it from its exchange or algorithmic structures.
In a possible new stablecoin move, Binance has the power to place its product, which it will issue and launch, among the top three stablecoins in terms of market value.
Still, there is no official or talked about what might happen in the near future.
