A Twitter post made by Binance CEO Changpeng Zhao stated, “Not delist. You can still deposit and withdraw USDC. Just merging all liquidity into one pair. Best price, lowest slippage for users.”
The largest cryptocurrency exchange, Binance, has announced that certain stablecoins will be removed as tradeable assets from the platform. Such coins are USD Coin (USDC), Pax Dollar (USDP) and TrueUSD (TUSD). However, they stated that these coins would be converted to Binance USD (BUSD), which is set to happen by September 29.
According to Binance, the move aims to increase liquidity and capital efficiency for its users. To do this, Binance will be introducing BUSD autoconversion. This implies that users who cannot manually convert their stablecoins before September 29 will have it auto-converted, and their balance will be shown within 24 hours of autoconversion.
Additionally, holders of these stablecoins can manually convert the coins to BUSD, but the BUSD token cannot be converted to any stablecoin. The minimum amount for the manual conversion is 1 USDC, TUSD or USDP. So, those with a lesser amount will have their coins auto-converted.
Changpeng Zhao, Binance CEO, stated that Binance users would not be able to use USDC as margin assets for future trades. The exchange will also remove USDC from other products, such as savings and stakings, crypto loans, gift cards and Binance Pay.
To ease users’ tension, CZ-Binance clarified in a tweet that they were not delisting USDC, saying;
“Not delist. You can still deposit and withdraw USDC. Just merging all liquidity into one pair. Best price, lowest slippage for users.”
Binance strongly advises that users avoid adding any position to prevent potential losses and clearly states that it is not responsible for any losses incurred during this period.
It also advised that users of the Portfolio Margin Programme transfer USDC from their Margin wallet to their Spot Wallet and top up their margin balance if necessary. They should also monitor Uni-MMR to avoid potential liquidation that might arise from the removal of USDC from their Margin Wallet.
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