Binance Trading Volume Reflects Bear Market Amid Shift To New Stablecoins
Binance’s BTC/TUSD trading volume increased to $60 million per hour shortly after the exchange returned fees for other pairs in late March, according to research firm Kaiko.
Due to the exchange’s focus on TrueUSD, BTC trading volume is in line with a bear market. TUSD, on the other hand, lags behind BUSD and Tether, which account for 90% of trading volume on centralized exchanges. After New York’s prudential regulator ordered BUSD issuer Paxos to stop minting coins, BUSD is expected to follow suit.
TUSD is a stablecoin, which is a cryptocurrency designed to track the value of fiat currencies such as the US dollar. Stablecoins are bought by cryptocurrency traders to get into and out of crypto trading positions faster than fiat.
TrueUSD is described on its website as “the first independently verified digital asset that can be exchanged 1-for-1 for US dollars.” It runs on Ethereum, BNB Smart Chain, TRON, Avalanche, and BNB Beacon Chain natively.
Real-time snapshots of the TrueUSD reserves show that over $2 billion backs all coins minted. Reserve composition unknown. In 2020, Techteryx Ltd, a Singapore-based company, purchased the TrueUSD intellectual property from Archblock.
Since October 2022, the Commonwealth of Dominica has authorized the coin as digital currency and medium of exchange. Tether, a TrueUSD competitor, recently announced it will no longer use commercial paper for USDT reserves.
According to Valor, the Federal Prosecutor’s Office and the Federal Police are currently investigating Binance. The Securities and Exchange Commission and the Attorney General of the State of São Paulo have both accused the exchange of financial crimes.
According to the securities regulator, Binance representatives directed users to the foreign version of the company’s online Futures platform because the Brazilian version does not provide derivatives. Binance CEO Changpeng Zhao is said to be a partner in company B Fintech Serviços de Tecnologia, which is mentioned in the filing.
If found guilty, persons who agreed to these instructions could face prison terms ranging from six months to two years. Brazilian authorities issued a cease-and-desist order after Binance violated securities laws by offering residents derivatives.
Binance is facing civil lawsuits in the United States for offering derivative products to large companies without first registering with the Commodity and Futures Trading Commission. Zhao called the accusations “disappointing.”