Binance, which began to shift from its previous stance of 1.5 years, announcing its decision to delist USDC, now reveals the plan to restyle the whole Safety of Asset Fund into USDC.
Embracing USDC: A Strategic Shift
A new update has come from Binance, which it has taken another step forward in the USDC adoption by revealing this news. Binance has been working a lot on the launch of some new cryptocurrencies with trading pairs including USDC as the base cryptocurrency.
Background: SAFU Fund and Its Evolution
The SAFU fund, which was created in 2018, is there to reimburse users in case their funds are lost during a hack. As an enticement, the Binance platform had the option of making several types of stablecoins including BUSD, TUSD, and FDUSD. So, they eventually created its association with the USDC of Circle.
Competitive Landscape: Coinbase vs. Binance
Coinbase, the primary competitor of Binance, Coinbase is a well-known added USDC currency. Before, Binance promoted BUSD and TUSD, but recently, they replaced them with USDC. Problems followed the announcement in September 2022 regarding the fact that they might eliminate the presence of USDC.
Rationale Behind the Shift
Binance’s announcement comes at a time when there is considerable distrust. However, the decision to make this step has re-defined Binance’s stance in the world of cryptocurrencies. They established their company as one that avoids division and genuinely prioritizes the public good. In addition, the idea of tethering a safe fund to USDC allows Binance customers to regain belief in the platform again. Quietly moving the SAFU fund to USDC prevents the fall of the fund to meet the urgencies associated with traditional banking. But constitutes the first Vanguard of decentralized banking institutions otherwise known as smart contract platforms.
Dominance of USDT
Despite Binance’s pivot towards USDC, Tether’s USDT remains the dominant stablecoin in the market, with the market capitalization being only a slight distance away from $110 billion. In comparison, USDC lags at $32 billion, shining light on USDT’s continuity.
Binance’s Strategic Decision
Binance’s choice to prioritize USDC over USDT invites scrutiny and speculation within the crypto community. This strategic shift reflects the evolving dynamics of the stablecoin landscape and Binance’s response to market trends.
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