Circle's USD Coin Listed on Binance
November 16 2018 - 12:40PM
ADVFN Crypto NewsWire
Bitcoin Global News (BGN)
November 16, 2018 -- ADVFN Crypto NewsWire -- On Thursday,
Binance announced that they would be following Coinbase’s lead and
throwing their support behind Circle’s USD Coin, which is one of
Tether’s latest rivals in the Stablecoin niche. The surprising
thing is, both of Crypto’s top two exchanges have done this even
though the USD Coin does not seem to be able to hold its peg to the
dollar.
Around the time of Cointelegraph’s
article on the subject, it was sitting at $1.02, with Tether at 98
cents, thus both were about equidistant from being even with the US
dollar. With this in mind, considering the reason behind supporting
Circle’s Stablecoin is a good place to start to attempt to
understand this particular situation. On one hand, Binance may have
added the USD coin just because Coinbase did. Leaders need to keep
pace with leaders. On the other hand, they may have done so to keep
what may be a more reliable Stablecoin on hand, before dropping
another. In other words, does this mean that Binance will drop its
current support of Tether as the project continued to be
criticized?
At this moment, such an event is
unlikely. Not only does Bitfinex have a wide-reaching hand, which
some think extends to market manipulation, while they are around,
it looks like support for Tether will be continuously
encouraged.
Expect this confusion in which
almost all Stablecoin projects appear to be the same on paper to
continue, at least until something occurs to differentiate one from
the pack. One way of this playing out might be for a single
Stablecoin to be pegged to a well-known company’s goods. Therefore,
people would see it becoming more on-par with fiat currencies than
the others.
Until then, it is logical to
hypothesize that all Stablecoins are precariously pegged, with no
major partnerships in place.
By: BGN Editorial Staff
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