TL; DR
Full story
Hot gossip!
Binance just announced that it is ending support for $USDC on the Tron blockchain, just a month after Circle made a similar announcement.
Which – added together – could deal a pretty heavy blow to Tron’s reliability and stability.
Here’s what that all means:
$USDC is the second largest stablecoin player, and Circle (the company that runs it) is known for its transparency and security.
The team conducts blockchain reviews and scans to ensure everything they touch is transparent, secure and follows regulations.
The point is: they are very well trusted in the space.
(Good/great/we love it/two thumbs up!)
Utilities…
Last month, Circle announced it would be pulling $USDC from the Tron blockchain (which also hosts $USDT — $USDC’s largest competitor) due to ‘security concerns’.
That’s where Binance comes into the picture.
Lately, Binance has been the opposite of Circle when it comes to ‘industry trust’ – mainly thanks to the fact that CZ (Binance’s former CEO) has been found guilty of money laundering by a US court.
(Sure!)
If Binance is to rebuild its image, it is paramount that they are seen as compliant, transparent and secure. This is probably why they quickly followed Circle’s example by dropping support for the Tron-based $USDC.
(Do you see the snowball forming as it rolls down this metaphorical hill?)
The bigger risk for Tron (and all associated tokens) now is this:
-
Others in the industry are playing the “where there’s smoke, there’s fire” game and throwing their support behind the blockchain
-
Which in turn inspires users to delete their assets from Tron (ASAP)
-
And too much selling pressure at once can lead to a price collapse
Is that what’s happening here?
No idea. But with things like this, it’s better to be safe than sorry.
(Because if a blockchain can’t handle heavy selling pressure, it doesn’t make your money).