Binance Rug Pulls USDC

In todays YIYL, we head over to everyone's favourite exchange Binance, the Tiktok equivalent of a shitcoin casino.

The stablecoin game seems to be the only game in town for the shitcoin salesmen these days. After all, the promise of we're going to make a better money in the market for creating synthetic representations of fiat money is the killer up from which all shitcoins cling to, to remain alive.

Since stablecoins are such an integral part of the value proposition for these networks, he who issues the most liquidity garners the most assets under management in their netowrk and bags the most fees for market making and on-chain transfers.

Binance is realising this and is clearly tired of letting USDC and the other stablecoins enjoy healthy competition with BUSD, their own white labeled stabelcoin, which is custodied with Paxos, the dudes that issue the Pax Dollar.

Another possible reason is that USDC is a US-regulated stablecoin and Binance probably has to deal with considerable headaches having to freeze accounts and comply with a bunch of drama and feel that BUSD is just a better regulatory fit for the products they offer consumers.

Binance wants more control

As a result of the move, the world’s largest crypto exchange would be removing trading for spot, future, and margin trading with USDC, USDP and TUSD pairs.

Binance are going to take over customer funds, and claim will not affect users’ choice of withdrawal: Users will continue to be able to withdraw funds in USDC, USDP and TUSD at a 1:1 ratio to their BUSD-denominated account balance.

Binance will obviously encourage them to move over as soon as possible and then arb trade the rest until they've pulled in more BUSD home and gotten rid of the other stablecoins, or who knows they might keep some to YOLO into DEFI.

Sounds very decentralised, free market, and libertarian to me doesn't it? lol how do shitcoiners continue to justify this constant larping, it's beyond me. They have the consistency of milk left in a tall glass outside on a hot day.

What markets are indicating?

The force over to BUSD has seen an uptake in use and market up, with the coin currently holding $19.3 billion in value. Its daily volume trades jumped over 56% on the news to over $6.5 billion, according to CoinMarketCap.

Remember that this move is not just about forcing liquidity into BUSD but every USDC and other USD stablecoin pair with other tokens, like

USDC - BTC
TUSD - BTC

Will now all be merged into BUSD - BTC instead, so of course trading volume on the coin is going to increase. While these numbers look impressive it's really all the same daily volume being merged and now it looks like a market is booming.

Binance cannot resist pushing it's centralised fingers into the market and pushing capital flows around in their favour. Retail traders obviously don't care they'll follow anything binance does and won't argue with them as long as they retain their 1-1 value.

This is just another reminder that any value you have on exchange is just paper promises, you can't enforce anything, you are at the mercy of these shady companies who only care about extracting as much value out of each user as possible.

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