Binance Stablecoin? CZ in Possible Tip of the Hand Is a Little Coy
By CCN: Just when you thought the crypto market had no room for another stablecoin, the head of the largest crypto exchange hinted that he might be making room. Binance CEO Changpeng “CZ” Zhao didn’t flat out promise a Binance stablecoin, but he was close. A follower on Twitter suggested that if Binance were to issue a stablecoin, it would bolster the use case for BNB, using other projects as a litmus test for its potential success. As usual, CZ is way ahead of crypto Twitter:
“Careful what you wish for.”
His mysterious statement failed to jumpstart any gains in the BNB price today, which the seventh-biggest cryptocurrency currently down nearly 2%.
Careful what you wish for.
— CZ Binance (@cz_binance) May 1, 2019
‘Careful What You Wish For’
CZ has a history of engaging with his followers, including this columnist. It started when he tweeted that Binance launched a Singapore exchange and completed the Matic token sale on its Launchpad, not to mention the public launch of the Binance DEX and the BNB mainnet swap – all within one week.
Yes, good deep sleep. Don’t need too long.
— CZ Binance (@cz_binance) April 25, 2019
If history is any indication, it’s probably only a matter of time before CZ and Binance announce their own stablecoin. CZ has used a similar MO before when one of his followers previously asked about XRP-based trading pairs, in response to which he said: “Be careful what you wish for!” Two days later, he came through:
We will be adding a couple trading pairs with XRP as the quote currency shortly.
And rename ETH markets to ALTS market. Running out of space on the UI.
— CZ Binance (@cz_binance) December 24, 2018
Tether (USDT) is currently the most high-profile stablecoin. Questions surrounding its solvency, however, have tainted the space. If anyone can clean it up, it’s CZ and Binance. It’s not that other stablecoins aren’t great, too. Gemini’s regulated stablecoin Gemini Dollar could be attractive to institutional investors, for instance. It’s just that CZ has a way of bringing magic to anything he touches.
As crowded as the stablecoin market is, there’s always room for SAFU – secure asset fund for users. SAFU is Binance’s emergency insurance fund. It represents funds stored in a cold wallet to protect users and their assets in the event of an emergency. A Binance stablecoin could be just what the industry needs, especially considering the fallout that the Tether controversy has left in its wake.
Just ask Tron Founder Justin Sun. Tether’s problems couldn’t have come at a worse time after Tether launched its own stablecoin on Tron’s blockchain. Now Sun is taking a step back from the drama, saying that he would “postpone our USDT rewards program for future updates until there’s more clarity regarding Bitfinex and Tether.” Bitfinex and Tether are currently both under fire by the New York Attorney General for allegedly misleading investors.
Tron’s Sun went on to say:
“Regardless, I firmly believe stablecoins will continue to play a big role in the blockchain space.”
I’ve decided to postpone our #USDT rewards program for future updates until there’s more clarity regarding @bitfinex and @Tether_to. Regardless, I firmly believe stablecoins will continue to play a big role in the blockchain space. $TRX #TRX #BTT $BTT https://t.co/xpe1eA2URK
— Justin Sun (@justinsuntron) May 1, 2019
Apparently so does CZ.
About The Author
Gerelyn is a fintech and cryptocurrency journalist who started her career writing about traditional finance/Wall Street. She has been reporting on financial services for the past 15-plus years. In full disclosure, she holds bitcoin (BTC).