Key Takeaways:
- Binance minted over a billion TUSD coins on Tron.
- Will the exchange buy out its tanking BNB coin?
- Could TUSD benefit from the USDT depeg?
YEREVAN (CoinChapter.com) – Binance exchange minted over 1 billion TrueUSD (TUSD) coins on the Tron blockchain on June 15, possibly hoping to either make the best of the current stablecoin crisis or save the tanking BNB coin. Crypto news outlet Whale Alert posted the transaction.
Did Binance mint TUSD to buy out BNB?
Binance coin BNB lost 24% of its market cap (now $36.3 billion) since the Securities and Exchange Commission (SEC) sued the trading platform on June 5, paring its year-to-date gains.
The BNB coin also lost nearly 30% of its valuation in a week. Thus, it is possible that Binance minted all the stablecoins to offset the damage and buy out some of the tanking BNB. Also, the exchange allegedly unloaded its Bitcoin stash for the same purpose.
Several crypto analysts and sector commentators have agreed, calling Binance a “house of cards.”
Binance and CZ have been selling spot Bitcoin at an alarming rate to defend the BNB $220 liquidation waterfall. As spot Bitcoin is sold off, BNB is purchased, which defends the $220 liquidation but also caps the upside potential of Bitcoin.
noted one such analyst on Twitter.
Analyst Dylan LeClair and Swan Bitcoin CEO Cory Klippsten have also accused Binance of intentionally manipulating the market to inflate the value of BNB artificially.
CZ denied the rumors. “Binance has not sold BTC or BNB. We even still have a bag of FTT. It is amazing they can know exactly who sold based on just a price chart involving millions of traders. FUD.” tweeted the Binance CEO.
Meanwhile, minting a stablecoin might be intended to one-up the troubled competition.
Is TUSD a viable competitor to USDT?
According to recent reports, USDT was on the verge of de-pegging due to liquidity influx on Curve 3pool and Aave. The largest stablecoin by market cap slipped from its dollar parity on June 15, shaving approximately $300 million off its capitalization and triggering depeg rumors across the SEC-spooked market.
Moreover, the latest USDT shakeup did not add valuation to the Circle stablecoin. USDC lost another $200 million in market cap in the previous 24 hours.
Could Binance hope to offer the market a more ‘stable’ stablecoin? TUSD’s market cap ballooned by 172% year-to-date but has not seen a significant change in the previous 24 hours.
Also read: Tether USDT back at $0.99 but depeg FUD continues – a second chance for Circle’s USDC?
