How Binance Increases User Liquidity and Capital
Navigasi - The world's largest cryptocurrency trading platform by trading volume, Binance, issued a notice on Monday, September 5, 2022 explaining the exchange will remove the USDC stablecoin from the platform's list of spot trading pairs.
|How Binance Increases User Liquidity and Capital|
Citing Bitcoin, Binance further detailed that users holding the three types of stablecoins will see their balances automatically converted to BUSD if the users do not remove certain crypto assets from the exchange.
It appears that Binance will be delisting the world's second-largest stablecoin usd coin (USDC), a US dollar-pegged token issued by the Center consortium. During the announcement made on Monday, Binance explained they plan to automatically convert certain stablecoin balances if the funds are not cleared by September 29, 2022.
“Fellow Binancians, in order to increase liquidity and capital efficiency for users, Binance introduced BUSD Auto-Conversion for existing user balances and new deposits of stablecoins USDC, USDP and TUSD at a 1:1 ratio,” the exchange said on Monday, quoted Tuesday (6//). 9/2022).
Later announcements further noted Binance halted certain spot trading pairs. Pairs will be deleted before the September 29 automatic conversion deadline and they will stop trading three days before the deadline.
“Binance will delete and stop trading on the following spot trading pairs on 2022-09-26 03:00 (UTC): USDC/BUSD, USDC/USDT, USDP/BUSD, USDP/USDT, TUSD/BUSD, TUSD/USDT,” he said.
Three days after the pair is removed, Binance will also stop ADA/USDC, ATOM/USDC, AUD/USDC, BCH/USDC, BNB/USDC, BTC/USDC, BTTC/USDC, EOS/USDC, ETH/USDC, LINK/USDC , LTC/USDC, SOL/USDC, TRX/USDC, WIN/USDC, XRP/USDC, ZEC/USDC, BNB/USDP, BTC/USDP, ETH/USDP, ADA/TUSD, BNB/TUSD, BTC/TUSD, Pairs trading ETH/TUSD, TRX/TUSD and XRP/TUSD on September 29.
Some individuals on social media criticized the move while others praised the decision. A large number of parties questioned why Binance made the decision.
“Why did Binance de-platform USDC?” someone asked Monday. “Why don't the biggest crypto exchanges do this?” someone else asked.
In addition to being the largest crypto exchange by trading volume, Binance is the third largest issuer of the BUSD stablecoin. The dollar-pegged crypto asset has a market valuation of around USD 19.44 billion or IDR 289.25 trillion. USDC's market cap is USD 51.89 billion or IDR 772.38 trillion today, just below the tether market cap (USDT) of around USD 67.59 billion or 1.006 trillion.
At the time of writing on September 5, 2022, at 16:15. (ET), the BUSD stablecoin has recorded USD 6,667,316,743 or IDR 99.24 trillion in 24-hour trading, while USDC has printed USD 5,789,291,326 or IDR 86.17 trillion in 24-hour trading. USDT trading volume exceeds BUSD and USDC combined with USD 31.16 billion or IDR 463.81 trillion in swaps today.
If USDC is no longer on the largest crypto trading platform by global trading volume, the daily volume of crypto assets could see some changes.
Previously, the Chief executive of leading crypto exchange Binance, Changpeng Zhao explained why the recent market crash bodes well for the long-term health of the digital asset market.
In an interview with CNBC, Zhao said the collapse of the crypto market was caused by the sudden influx of speculators in the crypto industry.
"I think a little reset (reset) is healthy to be honest. Crypto attracts a number of distrustful people. They are just speculators most likely, and it shouldn't really happen on a large scale," Zhao was quoted as saying by Dailyhodl, Wednesday ( 3/8/2022).
According to Zhao, when it happens on a large scale, it means the market is overheating and after a while, there will certainly be a correction.