Binance, Issuer of Third Largest Stablecoin BUSD, To Discontinue Support for Second Largest USDC

Binance, the issuer of the world's third largest stablecoin, said on Monday it will convert customers' holdings in three rival stablecoins USDC, USDP and TUSD into its own stablecoin on September 29 to "enhance liquidity and capital-efficiency for users" in a move that has baffled many enthusiasts. USDC is the world's second largest stable coin, whereas BUSD is the third largest.

Enthusiasts

[Anonymous Coward]

I don't really relate to fan culture. And cryptocurrency is mostly fanfic.

Re: How is this legal?

[RightwingNutjob]

Because it's not a real currency? That probably explains 97% of the shenanigans you read about.

Let's try a car analogy. If street legal automobiles driving on public roads is like dollars, then driving a truck on red-dye diesel parallel to, but not technically on, the public road is like cryptocurrency.

If you go nose first into a ravine that the real road bridges over, it's your own damn fault.

Re: How is this legal?

[cfalcon]

The USDC is currently worth 0.999918 dollars each. Is that wildly varied from one dollar?

Re: How is this legal?

[peragrin]

Unregulated securities are not currency and have no currency controls.

All cyrpto is the exact same thing as private money,/ instore use gift card returns.

It is badically throwing good money into monoploy money and hoping you can find a sucker to give you real money back.

What part of no regulation, no refunds did you get confused by?

Re:

[ByTor-2112]

Hah, actually gift cards are more regulated than crypto!

Greater fool theory rolls onward!

Re: How is this legal?

[dhrabarchuk]

You trade to the stable and over to what you want. You avoid closing the position to cash to avoid capital gains tax.

Take your seats

[Hodlerovic]

A stablecoin war? As far as I can see, Coinbase still lists USDBUSD pair, but even if they delist it it would be insignificant because BUSD is insignificant. However Coinbase and Binance are the two largest exchanges, and Mr. Zhao seems to think that there can be only one!

This is a classic web3 scam/cash grab/theft.

[pimpsoftcom]

Soooo.... this company is now stealing people's assets and attempting to replace them with assets that it claims have equivalent worth, In violation of basically every public securities law?

If true then from their perspective, doing this will lessen usage of the stable coin that is more popular than them, as well as help shore up their own finances. So it's a good deal for them, but it's a terrible move for people who are getting their assets stolen.

This is nothing short of a fraud in my opinion. Because now people are getting their assets stolen and replaced with something entirely different that does not have an equivalent value, and is known publicly to have a different value.

This is the classic Web 3 scam grift where people have their assets stolen out from under them with a system built to make sure they can't fight back. That's all web3 is, its a trap without any customer service to help you.

Re:

[JaredOfEuropa]

Not exactly, account holders have until the end of the month to transfer their stablecoins to an account at another exchange or to a wallet. And why anyone would keep more than petty cash amounts of crypto on any exchange is beyond me. Still, it's a crappy move.

Re:This is a classic web3 scam/cash grab/theft.

[Aighearach]

It is a stable pyramid, when they run out of new money they'll just give you Pyramid 2 as a replacement!

Very stable. Genius.

Re:

[sound+vision]

A few months ago on Slashdot I read a comment describing Bitcoin prices as "vigorously stable at $40k."

I don't think I'll ever forget that phrase now - "vigorously stable."

Re:

[rudy_wayne]

This is nothing short of a fraud in my opinion. Because now people are getting their assets stolen and replaced with something entirely different that does not have an equivalent value, and is known publicly to have a different value.

I already have money. I can already buy, sell, invest, do anything I want.

Fraud is the only thing that the crypto-bros have. Without fraud, crypto has no reason to exist.

Re:

[Bradac_55]

What securities law do you think this falls under? Crypto is not a securitie and only fools are still buying at this point.

So it's painfully obvious they're up to something

[rsilvergun]

Anyone know why anyone would agree to this? There isn't much of anything in the article it's less an article and more a paragraph or two. This is so obviously some kind of nasty little scam that you'd have to be a fool not to immediately remove your funds from the exchange unless there was some equally nasty reason why you can't do that. I know a few of the tricks exchanges have been using for market manipulation, and this is got to be one of them. Anyone know what the scam is? Why would anyone not just withdraw their funds and put them somewhere else?

Re:

[Aighearach]

Historically, all these fake-money exchanges are scams, and the number of options for somewhere to run is shrinking fast.

Re:

[Ed Tice]

I doubt anybody will agree. And people probably will do exactly what you stated to the extent that they can. I presume that this is being done because the "stable coin" issuer doesn't actually have the assets to back them up and they need to do this to keep the scheme going longer. Some people may not get the notice or understand or for whatever reason not withdraw their money. But then again maybe many will try to withdraw their money and find out that there is none left.

Re:

[Zontar_Thing_From_Ve]

Anyone know why anyone would agree to this?

I don't know if this is specifically going on here, but I'll mention it as a possibility. Because cryptocurrency is all smoke and mirrors, a lot of exchanges are offering insane amounts of interest in deposits. We're talking amounts in the upper teens. So Millennials and Gen Zers buy cryptocoins of some kind and deposit them to get the interest. They are going to hold the assets long term anyway because they are young, so why not? There are all kinds of restrictions on these deposits and people hav

They're all equally good, what's the problem?

[br1984]

Binance, the issuer of the world's third largest imaginary BS "coin", said on Monday it will convert customers' holdings in three rival imaginary BS "coins" into its own imaginary BS "coin" on September 29 to enhance the theft of its customers' imaginary BS assets in a move that has baffled many gullible idiots. USDC is the world's second largest imaginary BS "coin", whereas BUSD is the third imaginary BS largest "coin".

Not that kind of stable

[SubmergedInTech]

Turns out that a "stablecoin" actually refers to the typical output of a stable.

Terra version 2.0

[thesjaakspoiler]

All new and improved!
Throw your money at it while it still exists!