Binance, currently the largest crypto exchange by 24-hour trading volume, has announced its Tether (USDT) market is about to go through some major changes. The company has decided to introduce a combined stablecoin market (USDⓈ) instead of a single USDT market.
Binance has been supporting stablecoins for a while
In the official announcement, the exchange stated that the move was done in order, “to support more trading pairs with different stablecoins offered as a base pair.“ A further announcement on the exact pairs in the new market will be made in the immediate future.
The new market introduction follows the news earlier this month. On November 15th, Binance announced it will be listing Circle and Coinbase backed USD Coin (USDC). As you might have guessed, USDC is a USD stablecoin, pegged on a 1:1 ratio. Due to its impressive backing, USDC has already managed to secure listings on some of the largest crypto exchanges, such as OKEx, KuCoin, Bit-Z and Poloniex to name a few.
Earlier this year, Binance added support for two other USD-pegged stablecoins – Paxos Standard (PAX) and TrueUSD (TUSD). Back in August, Binance, alongside other notable crypto investors, has participated in the seed round of Terra stablecoin.
Tether is having trouble
Meanwhile, USDT, the flagship stablecoin, has been going through a rough patch, seemingly losing its dollar peg last month, after its price dropped to less than $0.90 on some exchanges. The current crypto freefall, which started about two weeks ago, only made matters worse, as USDT drifted between $1.02 and $0.95. Currently, it is still trading beyond $1, at $0.98 as of press time.
With a 7 percent fluctuation between its highs and lows, Tether is the most unstable stablecoin of them all. The accusations against Tether have resurfaced with many within the crypto industry blaming Tether Foundation for bitcoin price manipulation a year ago. The USDT parent company has also been criticized for its shady relations with Bitfinex crypto exchange, as both businesses even share the same CEO.
Its competitors have fared much better in the meantime. USDC has been trading above $1 for over two weeks and is currently going for $1.03. PAX and TrueUSD have seen very similar price movement patterns and are both trading above $1 at press time.
Despite the crypto meltdown, Binance CEO Changpeng Zhao (CZ) remains optimistic. CZ has recently said that even though the trading volume is down by almost 90 percent compared to late 2017, it is still significantly higher than the levels of 2016 or earlier. According to him, the unaccounted over-the-counter (OTC) market means that the real crypto trading volumes are much higher, likely by twice as much, as is reported on CoinMarketCap.
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