Following in the footsteps of Binance, WazirX, one of India’s top cryptocurrency exchanges, said on September 19 that, as of September 26, Circle’s USDC, Paxos’ USDP, and TrueUSD (TUSD) stablecoins would be delisted. A statement from the company claims that deposits for USDC, USDP, and TUSD have already been halted. Additionally, customers must withdraw their money before October 05, or else it will be changed to BUSD automatically, similar to what Binance did.
“Auto-conversion will be done on or before October 05. After the Auto-Conversion is completed, users will be able to withdraw USDC, USDP, or TUSD at a ratio of 1:1 from their BUSD balances.”
Tether’s USDT will continue to be supported. WazirX claims that the delisting of USDC, USDP, and TUSD aims to improve capital efficiency and liquidity for customers. This claim is identical to one made recently by Binance when it delisted the same stablecoins. WazirX concluded its announcement similarly to Binance by saying it may also incorporate other key stablecoins. The conversation did not, however, offer any further details in this respect.
It isn’t easy to understand how Binance and WazirX are related. WazirX claims to be a member of the Binance group on its official website, so the decision may have been made to boost Binance’s market capitalization, which is currently hovering around $20.52 billion, by elevating BUSD to the position of one of the ecosystem’s most significant stablecoins. According to a recent report, Binance CEO Changpeng Zhao (CZ) revealed on Twitter that his exchange hadn’t “acquired” WazirX due to payment problems. So, even if Binance provides WazirX with wallet services and off-chain transaction options to assist customers in saving money on network fees, the delisting decision (at least theoretically) should have nothing to do with the interests of his firm.
One of the main rivals to Binance’s BUSD stablecoin is Circle Internet Financial’s USDC stablecoin. Its market value is presently a little over $50 billion, considerably less than Tether’s (USDT) $67 billion. Although Circle’s CEO and co-founder Jeremy Allaire recently claimed that Binance’s actions had no adverse effects on USDC, the reality is that other prominent investors and projects, like MakerDAO, the company behind the DAI stablecoin, are thinking about delisting from USDC.
According to developer Banteg, the US Treasury Department sanctioned a few weeks ago Tornado Cash, a cryptocurrency mixer, leading Circle to immediately ban USDC 75,000 belonging to several “unsuspecting” Tornado Cash customers. The native token of WazirX, WRX, did not respond significantly to the news. Since June, it’s moving in a narrow range between $0.18 and $0.24, with a few notable peaks along the way.
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