Binance, one of the largest cryptocurrency exchanges in the world in terms of trading volume, made an interesting listing today. Binance announced that it has listed First Digital USD (FDUSD), a stablecoin, and the cryptocurrency is now officially available for trading.
By listing this cryptocurrency with “zero transaction fees,” Binance has taken a rare step. So what is the problem with this and why should users pay attention to this listing? Famous analyst and investor Adam Cochran, who does not have a good relationship with Binance, had previously stated that this would happen and warned investors. The stablecoin storm of Binance has been ongoing for days, and especially after the BUSD issue, the usage of TUSD has increased, and it was later revealed that TUSD technically belongs to Justin Sun. Adam Cochran was one of the first to disclose this and warned all users against Binance, stating that a new stablecoin would be introduced soon instead of TUSD. Binance, before FDUSD, made a similar move by emphasizing that there would be no transaction fees for TUSD, raising suspicions.
After Cochran’s tweet, a report regarding the reserve account of FDUSD’s company was shared on Twitter. It appears that the repayment guaranteed by the US government for FDUSD is limited to only $532. It is seen that this amount increased to $1,073 on June 30.
In a tweet he shared before, Cochran also emphasized that TUSD could soon fall out of favor and CZ would take different steps to keep it alive. Cochran stated that Justin Sun and CZ have now been “identified” and the incident has been understood, implying that another stablecoin could emerge.
Is Binance Right?
As expected by the analyst, FDUSD was listed on Binance without the total supply and circulating amount being disclosed, but with a reserve guarantee of around $1,000, according to the published reserve report. For now, the volume seems to have reached $4 million within 24 hours. Of course, the most traded pair here is FDUSD/USDT.
According to Cochran, Binance is heading towards a major failure and bad outcomes in the long run.
