Is Binance CEO Changpeng Zhao picking winners and losers in stablecoins like BUSD, TUSD?
- Binance announced 0% trading fee for BTC/TUSD trading pair on its cryptocurrency exchange.
- When Paxos issued stablecoin BUSD faced regulatory crackdown Binance moved to TUSD, doubling the asset’s market cap overnight.
- True USD supply crossed $2 billion amid banking woes of stablecoins like USDC, Binance minted nearly $50 million TUSD over the weekend.
Binance USD (BUSD) , the stablecoin issued by Paxos, faced regulatory crackdown from US regulators. Since then the exchange has moved on to an alternative, True USD (TUSD). While Circle’s stablecoin USDC suffered a depeg and most assets lost their parity with the US Dollar, TUSD’s market capitalization nearly doubled since March 12.
Binance picks a new stablecoin for 0% trading fee, TUSD
The world’s largest cryptocurrency exchange by volume, Binance faced hurdles when its Paxos-issued stablecoin BUSD suffered a crackdown from US regulators. The exchange was quick to move on from BUSD to alternate stablecoins, offering market participants a wide variety of assets to pick from.
Following the news of Circle’s USDC de-peg and decline, the exchange halted USDC swaps and picked a new stablecoin to offer commission-free trading, True USD (TUSD).
Binance offers 0% fee on BTC/TUSD trading
The exchange minted nearly $50 million in TUSD over the weekend, nearly doubling the stablecoin’s market capitalization.
TUSD market cap nearly doubled over the weekend
Crypto Twitter reacts to CZ’s choice of TUSD
Analysts noted Binance’s move to offer 0% trading fee on BTC/TUSD trading pair. The pseudonymous analyst Tree_of_Alpha tweeted:
CZ said: "you don't want my stablecoin? I'll just take another one and use that instead."
— Tree of Alpha (@Tree_of_Alpha) March 15, 2023
USDT and BUSD pairs revert to normal fees, BTC/TUSD becomes the only pair with 0% fee.
Wouldn't be surprised to see TUSD mcap rocket in the next few months from that alone. pic.twitter.com/ycekIrilc5
The expert noted that CZ’s choice could make TUSD mainstream and multiply its market capitalization significantly.
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
