In the world of cryptocurrency, stablecoins play a vital role in providing stability and reliability to traders. TrueUSD (TUSD), a fiat-backed stablecoin, has rapidly gained popularity on Binance as a viable alternative to BUSD. This article explores the remarkable journey of TrueUSD and how Binance has positioned it as their preferred stablecoin.
The Rise of TrueUSD on Binance
TrueUSD has experienced an exponential surge in the spot market and has quickly gained recognition among traders on Binance. This fiat-backed stablecoin has captured the attention of crypto enthusiasts, offering a reliable and secure alternative to BUSD.
Binance’s preference for TrueUSD is evident in their strategic move to offer free trading for the BTC/TUSD pair. By doing so, Binance solidifies TrueUSD’s position as their favored stablecoin, further boosting its popularity among traders.
Binance’s recognition of TrueUSD’s significance was reinforced when the exchange announced support for all TUSD pairs. This move demonstrates Binance’s commitment to providing traders with a diverse range of options and solidifies TrueUSD’s role as a prominent stablecoin on the platform.
Challenges Faced by TrueUSD
TrueUSD has encountered challenges with one of its providers, Prime Trust. BitGo, a company planning to acquire Prime Trust, recently withdrew from the deal. Subsequently, Prime Trust received an order from the Nevada Department of Financial Services to temporarily halt deposits and withdrawals. These obstacles raised concerns about Prime Trust’s ability to fulfill customer withdrawal requests.
Despite the hurdles faced with Prime Trust, TUSD’s stability remains intact. Archblock, a company affiliated with TUSD, has remained unaffected by these developments. Unlike BUSD, which relies solely on Paxos, TUSD leverages multiple sources for USD inflows and outflows. This diversified approach ensures stability, even when one of its partners faces difficulties. Additionally, the recent minting of TrueUSD coins on the Tron network by Binance has contributed to its stable supply.
Advantages for TrueUSD Traders
Binance’s decision to offer fee-free trading for the BTC/TUSD pair, along with no maker fees for the ETH/TUSD and BNB/TUSD pairs, has provided a significant advantage for TUSD traders. As a result, TUSD pairs accounted for a substantial 27% of Binance’s spot trading volume this month. Notably, the BTC/TUSD trading pair has emerged as the highest-volume pair on the exchange, surpassing the trading volume of BTC/USDT.
Conclusion
TrueUSD’s rise as a fiat-backed stablecoin, especially following the suspension of BUSD, has made it a favored choice on Binance. Despite challenges with one of its providers, TUSD has maintained stability and ensured substantial trading volume on the platform. As the cryptocurrency industry evolves, the increasing prominence of TUSD illustrates the dynamic nature of stablecoins within the digital asset ecosystem.
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