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Binance to stop supporting USDC, the second largest stablecoin

Oh boy here comes the legal cases perhaps conf/(%. 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.

 
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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.
 
BUSD markets were dried out on major coins.You had either to pay a premium or be only able to buy small amount.
This is the first sign of a depegg
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
 
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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
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.
 
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.
You uphold the idea that binance or usdt really hold for each 1 usd in stablecoin one real usd.
Didn't USDT already admitted they had not ?
You belive BUSD has so many USD in liquidity to pay everyone out to hold pegg ?
 
You uphold the idea that binance or usdt really hold for each 1 usd in stablecoin one real usd.
Didn't USDT already admitted they had not ?
You belive BUSD has so many USD in liquidity to pay everyone out to hold pegg ?
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.
 

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