Binance cryptocurrency exchange announced today that users of the Tron blockchain network will no longer be able to deposit and withdraw USDC, the dollar-pegged stablecoin.
TakeAway Points:
- Binance will end support for USDC stablecoin on Tron blockchain network on April 5.
- According to the announcement, this development is an effort to ensure that USDC remains trusted, transparent, and safe.
- However, Binance stated that users can keep trading USDC on the platform and that deposits and withdrawals of USDC using other networks that are supported will not be affected.
Binance Withdraws from Tron Blockchain Network.
The cryptocurrency startup Circle, based in Boston, said last month that it would stop producing its USDC tokens on the Tron network. It said this aligned with its efforts to ensure that USDC remained trusted, transparent, and safe.
According to Binance, on April 5 at 0200 GMT, it will stop supporting the stablecoin on the Tron network.
The cryptocurrency market is a highly dynamic place. It only takes a few seconds for prices to change. Hence, it is crucial for investors to possess dependable responses to these inquiries.
In a blog post, Binance stated that users can keep trading USDC on the platform and that deposits and withdrawals of USDC using other networks that are supported will not be affected.
Concerns about Tron Tokens
Meanwhile, the report pointed out that the U.S. Securities and Exchange Commission sued Justin Sun, the inventor of Tron and a well-known cryptocurrency entrepreneur, last year for allegedly marketing Tron tokens as unregistered securities and boosting trading volumes artificially. The SEC charges “without merit,” according to Sun.
USDC is the second-largest stablecoin, behind Tether, and the eighth-largest cryptocurrency, with around $32.1 billion in circulation.
According to Circle’s website, the Ethereum blockchain powers the majority of the USDC that is currently in use. In February, there were over $335 million worth of USDC housed on Tron prior to Circle discontinuing support for the cryptocurrency.
According to a November Reuters story that featured interviews with blockchain investigators and experts in financial crime, Tron has surpassed Bitcoin as the preferred cryptocurrency for cryptocurrency transfers linked to entities that have been labelled as terrorist organisations by the US, Israel, and other nations.
A spokesman for Tron responded to that report by stating that the company had no control over anyone utilising its technology and had no connection to the organisations that Israel had named. (Editing by Shounak Dasgupta; additional reporting by Elizabeth Howcroft in London; reporting by Akanksha Khushi in Bengaluru).
About
Stablecoins are a type of cryptocurrency that is designed to be “pegged” to or closely match the value of another currency or financial asset — like the US dollar or gold — in order to stabilise its pricing in the cryptocurrency market. Compared to currencies that can have high volatility, like Bitcoin or Ether, stablecoins are meant to be a stable option to invest in.
Also, some stablecoin issuers assert that they possess cash or other tangible assets equivalent to the whole amount of stablecoins issued in order to sustain the stablecoin pricing. For the others, they might automatically promote coin sales by an algorithmic technique to control the coin’s value in relation to the dollar.
