A new asset class commonly referred to as ‘stablecoins’ have proven to be an exciting addition to the world of cryptocurrency trading. Binance is seemingly determined to have some of these currencies duke it out as the company recently released a batch of new trading pairs including a TUSD/USDT market.
An Interesting Experiment by Binance
Although it has been rumored that Binance would add TrueUSD to its trading platform, the initial launch had to be postponed. Some liquidity concerns forced the company to revise the launch date but things eventually turned out alright. As such, TrueUSD is now the second stablecoin supported by Binance but it remains to be seen how this currency affects the crypto sector at large.
First of all, the big question is whether or not TrueUSD can provide sufficient liquidity to play any role of importance. More specifically, the developers claim that they have solved all concerns regarding liquidity but it is still up to users to buy and sell into these trading pairs.
The Inside Details
Binance has opted to open a market where TrueUSD and USDT can be traded intermittently. To most people, such a pair makes literally no sense as both currencies are pegged to the value of $1. Even so, it provides an additional avenue for users who want to give this new stablecoin a try by converting their Tether tokens. Given the public’s opinion on Tether and its lack of auditing, there may be a demand for such a market after all.
This will be an important time for TrueUSD because if this market proves to be successful and liquidity is not a problem, things will undoubtedly get very interesting from here on out. Even so, Tether has successfully maintained its dominant position on the cryptocurrency markets and risen to a $2.4bn market cap. It will take a lot of time and effort until TrueUSD can come close to that momentum.
An ongoing competition between stablecoins across cryptocurrency markets can only lead to positive developments. Those who want to try their luck with TrueUSD now have a major exchange to do so, even though Bittrex also supports this stablecoin. Whether or not there will be any demand for this particular currency remains unclear. However, things are looking to get rather interesting in the coming few months.
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