📰 Table Of Contents
Binance Announcement
Binance has announced that it will no longer support deposits and withdrawals of the USD-pegged stablecoin USDC on the Tron blockchain network.
Starting from April 5, users will no longer be able to use TRC-20-based USDC on Binance for deposits and withdrawals.
Investors have been given a 12-day window to convert, transfer, or cash out their TRC-20 USDC tokens from Binance.
Despite this change, users will still be able to trade USDC on the Binance platform.
Circle’s Decision
Circle, a Boston-based crypto firm, has also decided to stop creating USDC tokens on the Tron blockchain network.
This move by Circle has influenced Binance’s decision to discontinue support for USDC deposits and withdrawals via TRC20.
Reasons Behind the Decisions
Circle cited the need to ensure transparency, trustworthiness, and safety of USDC as the primary reasons for their decision.
Tron, founded by Justin Sun, has not yet responded to requests for comments regarding Binance’s decision.
Market Insights
USDC currently ranks as the eighth-largest cryptocurrency with a circulation of approximately $32.1 billion.
Most USDC tokens are based on the Ethereum blockchain.
In contrast, Tether’s USDT recently surpassed a market capitalization of $100 billion, outperforming USDC in terms of market cap.
Concerns and Responses
Despite its success, concerns about the quality of assets backing USDT have been raised in the crypto community.
A recent United Nations report highlighted Tron’s popularity among cyber fraud and money laundering activities in Southeast Asia.
Tether has refuted these claims, emphasizing its collaboration with law enforcement and the traceability of its token.
Tether also mentioned its collaboration with global law enforcement agencies to monitor activities, surpassing traditional banking systems.
Ian is a cryptocurrency enthusiast blending humor with professionalism. With an engineering background and a storyteller's heart, he simplifies the blockchain world with sharp analysis and a touch of wit. At Cryptowire, he brings his unique perspective to make digital financial innovation accessible to all.
