Right when we thought that the cryptocurrency market had no space for another stablecoin, the head of Binance Changpeng Zhao hinted that he might be making some space.
“Careful what you wish for”
The CEO of the largest crypto exchange, Changpeng Zhao or CZ, did not flat out promise a Binance stablecoin, but he was actually close. One follower on Twitter suggested that if Binance was to issue a stablecoin, it is going to bolster the use case for BNB, utilizing some other projects as a litmus test for its potential success.
As usual, Changpeng Zhao is way ahead of crypto Twitter, saying that people should be careful what they wish for. This mysterious statement failed to jumpstart any gains in the BNB price yesterday, with the seventh-biggest crypto currently down almost 2%.
Changpeng Zhao actually has a history of engaging with his followers, including this particular columnist. It actually started when he posted a tweet in which he said that they launched an exchange based in Singapore and completed the Matic token sale on its Launchpad, without mentioning the public launch of the Binance DEX, as well as the BNB mainnet swap – everything within one week only.
A matter of time before CZ announce the Binance stablecoin
In fact, if the history is actually any indication, it is definitely only a matter of time before Zhao and company announce Binance stablecoin they created. Zhao utilized a similar MO before when one of the followers he has asked about trading pairs based on XRP, in response to which he said that he should be careful what he wishes for.
Two days after that, he came through, saying that they are going to add several trading pairs with XRP as the quote currency in the near future. He also said that they would rename ETH markets to ALTS markets.
Tether or USDT is right now the most high-profile stablecoin. Some questions which surround its solvency also tainted the space. If anyone can actually clean it up, it is Changpeng and Binance.
It is actually not that other stablecoins are not great, as well. The regulated stablecoin of Gemini, known as Gemini Dollar, could also be attractive to the institutional investors. It is only that Zhao has his own way of bringing magic to anything he touches.
Space for SAFU always exists
As crowded as the stablecoin market is, there will always be space for SAFU or secure asset fund for users. SAFU is actually the emergency insurance fund of Binance. In fact, it represents funds which are stored in a cold wallet in order to protect users, as well as their assets in the event of an emergency. A Binance stablecoin could simply be what the industry finds necessary, particularly taking into consideration the fallout that the Tether controversy left in its wake.
Just ask the founder of Tron, named Justin Sun. The problems of Tether could not have come at a worse time after Tether has launched its stablecoin on the blockchain of Tron.
Right now, Sun takes a step back from all the drama, saying that he is going to postpone their USDT rewards program for future updates until there is actually more clarity in regards of Tether and Bitfinex.
Tether and Bitfinex are right now under fire by the New York Attorney General for allegedly misleading investors. Sun, the founder of Tron, said that regardless of the facts, he firmly believes that stablecoins are going to continue to play a significant role in the blockchain space.