• Binance minted over 1 billion TrueUSD (TUSD) coins on the Tron blockchain, possibly hoping to either make the best of the current stablecoin crisis or save its tanking BNB coin.
• Several crypto analysts and sector commentators have accused Binance of selling off Bitcoin and manipulating markets in order to inflate the value of BNB artificially.
• Minting a stablecoin might be intended to one-up the troubled competition, as USDT was on the verge of de-pegging due to liquidity influx and USDC lost $200 million in market cap in 24 hours.
Binance Mints Over 1 Billion TUSD Coins
Binance exchange minted over 1 billion TrueUSD (TUSD) coins on the Tron blockchain on June 15, possibly hoping to either make the best of the current stablecoin crisis or save its tanking BNB coin. Crypto news outlet Whale Alert posted the transaction.
Rumors Of Market Manipulation
Several crypto analysts and sector commentators have agreed, calling Binance a “house of cards” and accusing it of intentionally manipulating markets in order to inflate the value of BNB artificially. CZ denied these rumors, stating that “Binance has not sold BTC or BNB”.
Competing With The Troubled Competition
Minting a stablecoin might be intended to one-up other competitors who are struggling with their own issues. USDT was on the verge of de-pegging due to liquidity influx and USDC lost $200 million in market cap in 24 hours. Thus, it is possible that by creating a more ‘stable’ alternative, Binance could benefit from this shaky market situation.
The SEC Lawsuit And Its Impact On BNB
Since being sued by Securities and Exchange Commission (SEC) on June 5th, Binance Coin (BNB) has lost 24% of its market cap (now $36.3 billion), paring its year-to-date gains as well as losing nearly 30% valuation within a week’s time period. It is possible that by issuing new TUSD coins, they may be able to offset some damage done by this lawsuit as well as buy out some tanking BNB coins back into circulation.