Bitcoin Forum

Source: https://techcrunch.com/2022/09/05/binance-issuer-of-stablecoin-busd-to-discontinue-support-for-usdc-usdp-and-tusd/ (https://techcrunch.com/2022/09/05/binance-issuer-of-stablecoin-busd-to-discontinue-support-for-usdc-usdp-and-tusd/)

Okay so since it's about competition, we only have until September 29 to see USDC, USDP and TUSD on the Binance exchange. If we don't convert them on or after Sept 29, they're automatically gonna convert them to BUSD.

Anyways, I still have USDC on Polygon mainnet, Solana, etc., in my non-custodial wallets so after September 29 I need to convert them to USDT before depositing.

Any thoughts, reactions or opinions about this one guys? Would like to hear more from the community. Thanks in advance.

Well all stable coins pegged to the us dollar are under real pressure.

why is this?

all us citizens are allowed to buy $10000 worth of i bonds every year.

330,000,000 x 10,000 is a big pool of possible cash.

3,300,000,000,000 this is 3.3 trillion pot of cash possible every year .

normally I bonds were paying low interest. 1 or 2 or 3%. so while they are perfectly stable and pegged to the usd rates sucked.

but now buy

 1500 get 9.62% for six months say april 1 to oct 1
 1500 get 9.62% for six months say may 1 to nov 1

so on and so forth this means a ton of money leaves crypto and goes to 9.62% coins

especially stable coins which are known to crash and burn and don’t pay a lot more than 10% in any case.

the few that did crashed out badly.

So I think binance knows many stable coins are in a lot of trouble 😈 so I hope to see more coins pegged to the USD suffer due to these high interest I bonds.

I am on the Binance side on this, I don't understand why we need many stablecoins. I never consider stable coin is an investment, so I don't really pick which one should I use. The only reason why I have stable coin is just to prepare for an entry on market or just to send it to other people so its more of their option rather than mine.

looks like binance does want to get bigger with this, seeing its rivals as stable coins gain a place on their binance like feeling rivaled with other stable coins. but i have no problem with it, my flagship coin is only usdt and busd and it's still on binance. They must have prepared the best thing to stabilize the coin.

Stable coins was never an investment to begin with, why would anyone sees it as an investment? Your definition of preparing for an entry on the market shows how useful stable coins are, nothing wrong with having more than one stable coins.

I don't think it's a problem as long as there are Usdt and Busd with different blockchain options when making a deposit. because it will be too difficult to have many stable coins, especially since many of the coins that are said to be stable have lost their value.

There's also a thread made on the Trading Discussion about this. (https://bitcointalk.org/index.php?topic=5412502.0)

It's not really a problem. Binance is just removing the other stable coins where there's high liquidity in their platform. As for Tether, it's the most known so they can spare it. While the others, they're a big competitor for BUSD.

In the long term, the irregularity and obscurity of USDT as a viable asset could force itself to be removed entirely from the exchange. When investors turn away from it, they will turn to USDC and TUSD. USDC is faster and cheaper than TUSD but less decentralized and offers fewer privacy features. It will be interesting to see what emerges victorious in this case but there probably won't be one unless another stablecoin is launched in the future and I don't think it's new to see exchanges deleting coins although it's a bit surprising that Binance did this immediately after listing them.

Bold move for sure, but if they manage to pull it off then it could offer some major growth implications

binance does not like competition, it can be seen that other stablecoins bothers it, they hinder busdt's growth, however it does not seem right to remove competition from the market, there should be free choice

They have their own stable coins and then Tether, I think it's enough for us to make use of it and not to have so many stable coins, which might be in the end turn out to be another Terra Luna.

So we know where Binance is coming from, maybe besides that this is competition, but in the end they have to protect the interest of their users and obviously their own stable coins from such competitions.

If we dont convert our USDC, USDP, TUSD before Sept 29 binance will convert them into busd.

No worries, it's not the end of the world. You still trade these tokens on any other exchange even after 29 September.

---

The reason given is that they want to enhance liquidity.
Source (https://tribune.com.pk/story/2375123/binance-to-convert-users-usdc-into-its-own-stablecoin?amp=1)

But I doubt that they have taken this step because of recent depegs.

Alright so Binance want to remove centralized stablecoin except BUSD, but I wonder why they're not remove USDT? I think the trading pairs with USDT is really high and would affect their exchanges negatively. So USDC, USDP, and TUSD which have lower volume aren't a problem for them.

It's hilarious they will convert those stablecoin to BUSD, they shouldn't do that and just make any people can't trade with USDC. USDP and TUSD. This is why centralized exchange is bad since they can do anything.

Yeah well that is not really surprising to me. In the end Binance is probably the biggest crypto company out there and they are trying to get more and more influence and power. One way to do that is to ban most other stablecoins from their exchange. USDC is from coinbase as far as i know so obviously Binance is delisting USDC to hurt coinbase. They can not do the same with USDT because USDT trading Paris usually have by far the biggest volume of all stablecoin pairs. So if they would stop the support of USDT then they would hurt themself way more than USDT.
I always dislike it, when one company becomes to powerful within a certain field of industry.

The answer is on the article itself. Binance wants to “enhance liquidity and capital-efficiency for users” and focus on there own stable coin. This is good for there company since this new stable coins is starting to share on there BUSD market especially the USDC. The only reason why USDT stays is because it’s the largest stable coin in the crypto market and it will give Binance huge loss in case they will include it to the removal.

This is a very good move by Binance to capitalize on the market while they have the control on the biggest trading venue on crypto.

A large number of stablecoins leads to a large number of trading pairs, which significantly reduces their liquidity. Binance solves this problem by limiting the number of pairs and at the same time, they bring their stablecoin to a higher level. I think that soon other exchanges will pick up such an innovation.

For me, there is no difference between USDC and BUSD, both of them cannot prove that the currencies they have are fully covered or backed by one dollar, but the step comes to strengthen BUSD volums, as it seems to be an indirect force for users to buy it because the choice they have will be limited.

they did not add USDT because high volumes and people will move to another exchange if they did that.

Stability of BUSD has nothing to do with it. It seems to be about enhancing liquidity according to the article. Also they won't probably want anything to do with lawsuit issues if other pegged tokens suddenly break like what happened with terra.

Also it helps busd reputation when people mainly use their token. It's a no brainer for them.

It's business, They need to get competitive with their rivals and delisting such tokens is one way to show how they fight. I also believe that we don't need so many stable coins in the market. We have many stable coins in the market right now and most of them have same concepts, The only one who should stay is the one who has the original concept.

Well, it was expected and kind of inspired from FTX, however got more strict into that. Here is the reason why i said, binance got inspired from FTX. In FTX exchange, they use USD as a stablecoin for liquidity and anyone can deposit TUSD, USDC, USDP, BUSD, HUSD from different chain and those stablecoin will show as USD in there. For withdrawing USD, you will also have option to select which one (TUSD, USDC, USDP, BUSD, HUSD), you wanna withdraw, even in which chain. So this is the scenario of FTX for stablecoin of USD. Fun fact, binance got inspired from that step and they became more strict to remove all rivals from there exchange, lol. I'm saying this because binance previously got inspired from leverage token of FTX and introduced later on in binance trading.  ;D

So i'm happy to use both exchange, however ftx is always preferred from myside as withdrawal fee is zero and also have option of different chains.  ;)

Yeah, it's more on competition and there's no need to see more classes of stable coin if there's nothing

but to utilize the main function, if they decided to remove those coins they are just limiting the numbers as they also
have one that with the same concepts it is on their hands whether to keep or to remove whatever coins they think
is no longer worthy to stay with their platforms.

Stable coins are there numbers is very surprising to me and having too many and some crashing will make investors to panic on rumors and which one to hold doing market volatility or long term holding.
Maybe removing so many stable coins from Binance is to reduce the risks of investors holding stable coins that does not have strong team that can back it up doing market volatility or dumping. We all had big loses on terra which had made many to think twice before investing or holding stable coins.

It looks like CZ wanted to dominate the stablecoin world, reason why he is going to stop other stablecoin trading in his exchange platform.  Well, it is his right to do so, and I think it is fine since deposit and withdrawal is still available for those stablecoins.  Its that if anyone tries to trade them, they need to convert them to BUSD and do the trades.  As for me, I don't mind as long as I can still deposit and withdraw it from the platform.  It is just an extra step if we wanted to trade with those stablecoins.

I think BUSD and USDT is the most sought after stable coin in trading with huge capitalization thus more credible than USDC, TUSD and USDP, personally I traded with crypto/USDT and I am very sure many traders also chooses the pair for trading and for it withdrawal which is fast and Swift, infact in Binance trading App the two market options are crypto/BUSD and crypto/USDT, Binance is trying to protect the interest of investors hodling their coins in those stable coins and I believe with this announcement those investors will move their coins to other reliable stable coins especially BUSD.

I agree that having too many stable coins does not solve any problems, but only confuses us when making a decision. but this move of binance i don't support very much, we can't depend on binance too much, that will jeopardize us and the market. Once binance crashes, all binance products are affected, if we just use all of their products once there is a problem then we will have a lot of trouble. The market should have diversity from many different sources, not too concentrated on one person.

Binance should keep BUSD on the limelight, either me, I don't even use that stable coins, I only use BUSD and USDT on Binance platform, It's their right to decide. Using BUSD has a big advantage if you trade that fair because the trading fee cost is low, while USDT has wide usage in many trading platforms, for me, I'm okay with the delisting of that stable coin.

binance has the right to do that because it already has its own stable of coins which is BUSD. I think too many stable coins in circulation is also not good, just one or two, except for the private market based on the token it is very reasonable. if there are many different stable coins, we will be confused about choosing them even though their functions are the same, what binance is doing is not wrong in my opinion.

USDT is still the most popular stablecoin and they have not eliminated it along with other stablecoins, show they have strategies in place to minimize the risk of losing customers. For those who use binance regularly, I think it won't be a big deal, as I believe they will also use BUSD before that to enjoy some of the binance incentives. Currently, binance is known as the exchange with the largest trading volume, the exchange has good services that bring the most satisfied user experience. This is their great advantage, so if anyone has ever used binance, it will be difficult to use other exchanges. This action will make the opponents very angry, it has an element of monopoly but there is nothing they can do.

I don't think that CZ wants to dominate the stablecoin market. If he and Binance wanted to do that, USDT should also be on the delist from Binance, not just USDC, USDP and TUSD. Of course they have clear reasons why they made the decision to delist USDC, USDP and TUSD, but it's impossible for them to clearly tell their reasons publicly. This is purely a competition. As far as I can see, Binance's policies don't have an overall bad impact on the crypto public, it's just that they narrow the adoption of Stablecoins other than BUSD, which is a minor issue, because we know that Binance is the number 1 exchange ATM.