Following in the footsteps of Binance, India’s largest crypto exchange, WazirX will remove USDT, USDC, USDP, and TUSP to boost its liquidity.
WazirX Plans Stablecoins Delisting
A statement from the exchange shows that withdrawals for the affected stablecoins will continue until September 23. After that, it will stop supporting the tokens and their spot market pairs on September 26 at 6:30 am UTC.
According to WazirX, users who still hold any of the stablecoins until the deadline will have their assets converted to Binance Coins (BUSD).
The Indian-based crypto exchange follows the example set by Binance in delisting the stablecoins. Binance announced that it would cease supporting the stablecoins on September 29. In addition, it would automatically convert the remaining balance to BUSD after the deadline.
However, Binance has clarified its earlier decision. The largest crypto exchange noted that it is not delisting assets. Rather, it is removing their ability to be traded on its platform.
As a result, all users who still hold USDC, TUSD, and USDP will have their balances converted to BUSD. Users can still deposit and withdraw their assets on the Binance exchange.
What does the Move Entail?
Coincidentally, both exchanges’ reason for removing the coins is the same. They want to enhance liquidity and capital efficiency. However, many industry observers believe Binance aims to improve its native coin’s trading capacity.
Chanpeng Zhao, Binance CEO, noted that the aim is not delisting of the currencies. The exchange merges the liquidity into a single pair to give users the best price.
Furthermore, WazirX’s reason seems to be similar to that of Binance. The only difference is that it is delisting the tokens, while Binance claims it is not delisting them.
Is USDC Going Down?
Over the past few weeks, USDT and USDC balance sheets have shown contrasting directions.
Following the Terra LUNA crash on May 9, both coins surged to compensate for the stablecoin market meltdown. However, a couple of weeks later, USDC tanked while USDT continued to spike.
It is worth noting that USDC’s involvement in the Tornado Cash debacle has hampered its market outlook. After the sanction of Tornado Cash by the U.S. authorities, USDC’s parent company, Circle, began suspending all wallets linked to the asset mixer.
Tornado Cash has received stolen crypto funds from the notorious North Korean hacking unit, the Lazarus Group. The firm offers asset mixing to change the stolen funds before moving them to various wallets.
As a result, the Tornado Cash incident attracted widespread criticism from the crypto community. Circle’s compliance with the ban was commended, but it was too late; USDC fell further below its competitor.
Moreover, USDT’s balance on exchanges has doubled over the past year, increasing to $17.7 billion. Meanwhile, USDC dropped 70% to a low of $2.1 billion from the previous $7 billion last year.
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