TL;DR
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Hot gossip!
Binance just announced it’s discontinuing support for $USDC on the Tron blockchain, just one month after Circle made a similar announcement.
Which — when added together — could deal a pretty heavy blow to Tron’s trustworthiness and stability.
Here’s what all of that means:
$USDC is the second largest player in the stablecoin space, and Circle (the company that runs it) is known for its transparency and security.
The team runs blockchain assessments and scans to ensure everything they touch is transparent, secure, and follows regulation.
Point is: they’re very well trusted in the space.
(Good/great/we love it/two thumbs up!)
Now…
Just last month, Circle announced it was pulling $USDC off of the Tron blockchain (which also hosts $USDT — $USDC’s largest competitor) due to ‘security concerns.’
Which is where Binance comes in.
Of late, Binance is very much Circle’s opposite as far as ‘industry trust’ goes — thanks mostly to CZ (Binance’s former CEO) being found guilty of money laundering by a US court.
(Yikes!)
Now, for Binance to restore its image, it’s of the utmost importance that they are seen to be compliant, transparent and secure — which is probably why they were quick to follow Circle’s lead in dropping support for Tron based $USDC.
(Can you see the snowball forming as it rolls down this metaphorical hill?)
The larger risk for Tron (and all of its associated tokens) is now this:
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Others in the industry play the “where there’s smoke there’s fire” game, and pull their support for the blockchain
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Which in turn, inspires users to move their assets off Tron (ASAP)
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And too much selling pressure all at once can lead to a collapse in price
Is that what’s happening here?
No idea. But better to be safe than sorry with these sorts of things.
(Cause if a blockchain can’t deal with heavy sell pressure, it’s not deserving of your money).
