27 Earn Block Chat Time | Binance will automatically convert USDC to BUSD

freetoken2022

Sep 6, 2022

Yesterday evening, Binance announced a news, the following is some excerpts:

 In order to improve users’ liquidity and capital utilization efficiency, starting from 11:00 on September 29, 2022 (East 8th District time), Binance will charge users’ existing USDC, USDP, TUSD stablecoin balances and new deposits at a rate of 1:00: A ratio of 1 is automatically converted to BUSD.

I believe everyone is as shocked as I am. After all, in addition to USDT and BUSD, USDC can be regarded as one of the largest stablecoins in circulation. Most platforms basically support the above three cryptocurrencies. However, Binance actually decided to stop USDC. It is said that it is to improve the liquidity of users and the efficiency of capital use, but from my personal understanding, I would think that Binance would force users to use their own cryptocurrencies in disguise, thereby increasing the market share of their own stablecoins.

And most investors are probably similar to mine. Even stablecoins still hope to be dispersed into different currencies to reduce the decoupling of currency prices caused by uncertain factors, especially after witnessing the collapse of UST and LUNA. You can't trust it 100%. But this time, Binance did the opposite, even forcing users to convert all their USDC into BUSD. Does that also mean that when we want to transfer external assets to Binance, we cannot use USDC as a transmission medium? Instead, find a way out.

Take Osmosis, a platform I recently considered participating in, as an example. The only stablecoins in it are USDC and DAI. If USDC cannot be transferred to Binance, DAI must be used to lock in value, and the assumption must be made. The good liquidity pool is changed to DAI/OSMO, but DAI is far inferior to USDC in terms of liquidity and the total amount of funds in the pool. This is quite troublesome, and I don’t have much funds. The problem is still relatively small, and other investors with much larger funds need to think carefully.

For now, let's wait and see what happens, and adjust the operation strategy at any time.