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Binance to stop supporting USDC, the second largest stablecoin
- Thread starter troubled soul
- Start date
Oh boy here comes the legal cases perhaps 
. Hope Binance is aware of its position in market and Antitrust laws on both sides of the big pond...lol. To me it seems an anti competitive practice under Article 102 in EU. They are limiting the market for the other stablecoins via abusing their dominant position. It's bit like Microsoft only offering Internet Explorer. We remember they were then forced to offer other browsers 
. Wonder if Binance will be forced to offer other stablecoins.
https://www.theguardian.com/technology/2010/mar/02/microsoft
. Hope Binance is aware of its position in market and Antitrust laws on both sides of the big pond...lol. To me it seems an anti competitive practice under Article 102 in EU. They are limiting the market for the other stablecoins via abusing their dominant position. It's bit like Microsoft only offering Internet Explorer. We remember they were then forced to offer other browsers . Wonder if Binance will be forced to offer other stablecoins.https://www.theguardian.com/technology/2010/mar/02/microsoft
The reason this has been done (my hunch), all these stable coins mentioned are US Issued and every transaction is meant to go through Bank Secrecy Act, and/or Fincen/Treasury processes.
There's two ways to look at this.
BUSD though issued by Paxos is issued on behalf of a Non-US Entity, and it's assets are in treasuries, -> maybe they don't have to abide by these requirements (which Binance is already being investigated for), and maybe BUSD funds are moved outside of the US for the Backing, there was a lot of talk about Binance being surprised they were under the US Jurisdiction due to the $ reserves and interactions in the US last week.
BUSD would make it simpler for Bank Secrecy Act or Fincen/treasury requirements for all transactions on exchange, and leaves all external transactions to their respective issuers - clears the water if you will.
There's two ways to look at this.
BUSD though issued by Paxos is issued on behalf of a Non-US Entity, and it's assets are in treasuries, -> maybe they don't have to abide by these requirements (which Binance is already being investigated for), and maybe BUSD funds are moved outside of the US for the Backing, there was a lot of talk about Binance being surprised they were under the US Jurisdiction due to the $ reserves and interactions in the US last week.
BUSD would make it simpler for Bank Secrecy Act or Fincen/treasury requirements for all transactions on exchange, and leaves all external transactions to their respective issuers - clears the water if you will.
This isn't the case for liquidity issues with Binance, you actually have the liquidity split between different stables, and it is in Binance user's best interest from a pooled liquidity perspective, making the different pairs more liquid and, of course, for Binance to propagate busd
That has nothing to do with a depeg. On Binance you can ALWAYS redeem 1 BUSD for 1 USD and withdraw the USD to your bank account, that is the peg. The fact a pair has different pricing because of liquidity has nothing to do with the peg itself. I personally haven't seen or paid a premium anytime in the 5 years I've been with Binance (since its creation), maybe there's been times where there was a premium but I doubt it lasted long.
And USDT has also officaly 1 USD per one USDT and still you see there depeggs.
If large amounts of BUSD are trying to buy major coins in a market where is no liquidity what happens ?Do people exchange their BUSD against USD or are they willing to pay premiums just to get into the coin when thinking its the bottom of the bearish cycle ?
Did you ever worked in reality with stablecoins and exchanges and know first hand what happens when big moves appear ?
because i did and i didn't just see once a stablecoin getting depegged in big moves even they have a guarantee.
The next question would be how harmfull would it be for binance and busd when people would start redeeming that stablecoin which i doubt many would do anyways other than some arbitrage users.
Any imagination how much funds are in busd waiting for the bottom to jump in
If large amounts of BUSD are trying to buy major coins in a market where is no liquidity what happens ?Do people exchange their BUSD against USD or are they willing to pay premiums just to get into the coin when thinking its the bottom of the bearish cycle ?
Did you ever worked in reality with stablecoins and exchanges and know first hand what happens when big moves appear ?
because i did and i didn't just see once a stablecoin getting depegged in big moves even they have a guarantee.
The next question would be how harmfull would it be for binance and busd when people would start redeeming that stablecoin which i doubt many would do anyways other than some arbitrage users.
Any imagination how much funds are in busd waiting for the bottom to jump in
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Again, peg has nothing to do with pairs. Peg is the fact every BUSD can be redeemed for 1 USD. It doesn't matter if there are premiums in certain pairs, 1 BUSD can always be redeemed for 1 USD. The same applies to USDT, there were over $20B worth of withdrawals from USDT through their official site and every USDT was redeemed for 1 USD. That is the peg.
What you're talking about is lack of liquidity but that has nothing to do with pegging.
Anyways the move Binance is making will probably benefit all users as all pairs will be more liquid.
I never said Binance holds 1 USD (cash) per BUSD. I said that at the moment you can redeem 1 BUSD for 1 USD without any issues. BUSD is backed by both cash and US treasuries. Do they have enough liquidity if every single BUSD wants to be claimed? Probably not on the same day, but in a short time span, yes. Note that BUSD was approved by NYSDFS, which should say a lot considering barely any stablecoin has been approved anywhere in the US.
In the case of USDT, Tether had $20B worth of withdrawals in less than two months and they were able to fulfill them. It is true that they do hold some more risky assets, but they've said that for example, commercial paper has been reduced significantly and they're looking to get completely rid of it. They're being audited by a non-offshore accountant firm too, you can check the reports.
But before making this any longer, the only point I was making is that the peg has nothing to do with the liquidity of a pair in an exchange as you were saying. Maybe in one exchange 1 BUSD buys you $0.9 worth of BTC, but that doesn't mean BUSD is worth $0.9 as you can redeem it for $1. Just trying to explain you what peg means here.
Personally, I trust USDC more than I trust BUSD, and I trust BUSD more than I trust USDT.
They're forcing their users to jump onto the BUSD ship because BUSD is not as liquid as they think, the real stress test isn't even here.
All stablecoins are aberrations. I only trust btc, xmr and a few others.
You do not know what you are talking about.
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