Wow... ever since BUSD was limited to redemptions only, making it was pretty much useless for Binance to use as an exchange stablecoin, the exchange has been pushing TUSD as the preferred alternative for Binance. Honestly, I've always preferred USDT, DAI, and USDC in that order... I did occasionally use BUSD to take part in Launchpools and to use on the Binance Smart Chain, but I was always more keen to use the ones that I sort of trusted more.
But when TUSD started being the preferred stablecoin for Binance, well.. I was pretty wary. Due to the ownership and issuer of the stablecoin, I really just didn't trust that everything was above board! Adam Cochran on Twitter has been recently posting some interesting and disturbing news about TUSD recently and it isn't good.
Sure, USDT can be pretty sketchy, but it has lasted several cycles... and DAI and USDC have their own particular issues, but again, they have lasted several cycles as well. TUSD... well, this was new, and again... I didn't trust the issuer! And I was really not that keen that it was being adopted by Binance...
... and today, we see some news that TUSD might not be fully backed. In fact, that the issuer had lost control of the wallets that were supposed to be backing it? And just hid that problem and tried to "trade" it back? Hmmmmm... this is pretty sketchy even for crypto... although, the cynical side of me starts to wonder if it is par of the course for crypto.
And apparently, on the Binance spot market... well, the "peg" is defended by only about 20 million in purchase orders? And 21 million in sells would depeg TUSD to 0.70 cents? Oooof... that would sting quite a bit, and that is a really shallow liquidity that is just asking for some whale to come in and stress test the peg.
Now, I'm definitely no trader, but I'm pretty sure that a stablecoin chart (TUSD/USDT) shouldn't look like that! And that is on the day setting, so you aren't seeing what is happening on the smaller scales! Definitely doesn't inspire a great deal of confidence there!
So, what am I doing about all of this... well, I don't have any TUSD, and I don't intend to get any either... I'm happy with the other stablecoins, and no amount of fee free trading or Launchpool staking is going to make me purchase TUSD! But, I'm a little bit scared that if TUSD goes down that it will impact Binance... I really hope not, Binance is huge, and we will all notice if it gets taken down as well...
... so, I'm withdrawing everything from Binance... just in case, I will leave the scraps there, and BNB that I use for the card rebates and Launchpool/pads. After all, if Binance goes down, then BNB will crash as well! But like always, better safe than sorry... everything out!
I can also be found cross-posting at:
Hive
Steem
Publish0x
Handy Crypto Tools
Ledger Nano S/X: Keep your crypto safe and offline with the leading hardware wallet provider. Not your keys, not your crypto!
Binance: My first choice of centralised exchange, featuring a wide variety of crypto and savings products.
WooX: The centralised version of WooFi. Stake WOO for fee-free trades and free withdrawals!
GMX.io: Decentralised perpetual futures trading on Arbitrum!
Coinbase: If you need a regulated and safe environment to trade, this is the first exchange for most newcomers!
Crypto.com: Mixed feelings, but they have the BEST looking VISA debit card in existence! Seriously, it is beautiful!
CoinList: Access to early investor and crowdsale of vetted and reserached projects.
Cointracking: Automated or manual tracking of crypto for accounting and taxation reports.
KuCoin: I still use this exchange to take part in the Spotlight and Burning Drop launches.
