While Binance pampers its BUSD, Tether is rubbing its hands!

It is impossible to predict the positive or negative consequences of an action – Is Binance predicted the outcome of the JPMorgan study? Is it a surprise, or something thoughtful and desired?

Hop, everyone out on Binance!

You couldn’t miss the news, which caused a lot of ink to flow. Binance has decided to convertautomatically and without asking the opinion of its users, USDC, USDP and TUSD of its customers in BUSD.

Indeed, on September 29, if you hold any of these three tokens in your Binance bag, they will be automatically exchanged for BUSD, stablecoin home ! As a result, the platform will no longer allow you to trade with BUSD, USDT, BTC or even theETH. The goal is therefore clear. Binance wants to strengthen its position in the stablecoin market, by simply banning competition. But, will the action have the desired effect?

USDT Looks Struggling Against Competitors

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Will USDT come out stronger?

According to JPMorgan, this way of doing things could on the contrary benefit one of its competitors, the USDT! Analysts at the acclaimed investment bank have found that Tether’s (USDT daddy) share of overall stablecoin market capitalization has fallen. Based on the data of the last 18 months, the observation is clear. The importance of USDT in the balance decreases quite sharply.

Additionally, the Terra Luna disaster, and all that it entailed, would have particularly benefited Binance (BUSD) and Circle (USDC), but not Tether (USDT).

In our opinion, Binance’s decision is likely to reinforce the importance of Tether in the stablecoin universe which was threatened by the USDC. […] The importance of Tether is not only limited to its share of market capitalization in the stablecoin universe, but also depends on its use, especially in trading..”

JPMorgan

Is Binance playing a double game with USDT?

With eliminating competitors of USDT on its platform, Binance could therefore contribute to to reinforce the USDT. Is it a voluntary manoeuvre, a possible partnership? Or is it just an uncalculated consequence of an action that aims to strengthen the position of the platform?

In any case, although its market share seems reduced, USDT continues to hold the top spot. Indeed, the daily trading volume is doing well. It places itself far ahead of its competitors, with a volume ten times greater than its main outsider, theUSDC.

For analysts, this Binance announcement will therefore help strengthen their token, the BUSD. But, it will also have a butterfly effect on theUSDT which would see its position greatly enhanced. Will this alleged effect be confirmed after September 29? Case to follow!

Binance has now reached a sufficient critical size to be able to return bitcoin’s fund of international conquest in quick succession. To register on the exchange and form your own opinion, it’s this way (commercial link).

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