On September 5th, Binance announced that it plans to drop several usdc trading pairs and automatically switch some stablecoin accounts on September 29th. While the move was controversial among crypto fans on social media, Circle Financial CEO Jeremy Allaire said the change “could lead to more usdc flowing into Binance.”
Circle’s Jeremy Allaire thinks Binance’s forced stablecoin conversions will lead to more USDC flowing into the exchange
CEO of the club Jeremy Allair He spoke about Binance’s recent move to eliminate multiple stablecoin trading pairs and eliminate USDC, USDP, and TUSD stablecoins at a 1:1 ratio of BUSD to “improve liquidity and capital-efficiency for users.” Circle and Coinbase are both the organizations behind the Center Consortium, the issuer and custodian of the USD Coin (USDC) and the Euro Coin (EUROC). Alire He believes. Forced conversions have sparked a number of “misleading headlines and interpretations”.
Allaire continued that Binance “will not end support for USDC and [the] A change could cause more USDC to flow into Binance. CEO of the club It is mentioned A trading platform that unilaterally changes existing client assets does not operate in the regulated US market and would not have handled the situation that way. Allaire said Binance is trying to bolster its dollar liquidity by using cash-equivalent constants. Binance has also stated that it cannot make the switch to Tether (USDT), at least for now, because it thinks Allair is too disruptive. Alire Comment:
Binance is trying to merge the dollar liquidity w cash equivalent constants. That bodes well for liquidity and market depth. [Tether] Not worth it in cash – not even close. Binance cannot do this now / yet w [tether] Because it is very disturbing from the current point of view [tether] Liquidity on Binance.
Trueusd Addresses Binance’s Automatic Conversion Activity — Paxos Says The Decision Is ‘A Positive Step For The Security Of Its Customers’
In addition to Allair’s comments on Tuesday, TUSD provider Truusd also tweeted about Binance’s decision. “TUSD supports Binance as always and will continue to cooperate with it [the] The Binance ecosystem,” the official Trueusd Twitter account He wrote. “Binance maintains multi-chain TUSD deposit and withdrawal support for all token levels.” Allair, for his part, thinks that as Binance strengthens its dollar books, “it will now be easier and more attractive to move USDC to Binance to trade major markets.”
USDP issuer Paxos also spoke about Binance’s recent move to liquidity consolidation. “Binance has taken a positive step for the safety of its customers by pushing support [BUSD primarily]” Paxos He wrote on Tuesday. “Unlike competing stablecoins, BUSD is governed by the NYDFS, which sets rules and enforces those rules.”
What do you think of Jeremy Allair, Truusd, and Paxos about Binance’s decision to automate some of the stable coin accounts? Let us know what you think about this in the comments section below.
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