Select Stablecoin Market Caps Decline As Binance Auto-Converts To BUSD
OCT 05, 2022 • 3 Min Read
🌅 Welcome!
A trillion-dollar financial services company is launching an Ethereum fund and a bankrupt crypto fund’s multi-million dollar NFT portfolio is repossessed by liquidators. Elsewhere, Twitter confirms a buyout by Elon Musk as DOGE pumps on the news. Just another sign of a rational, healthy, and fully functional market.
Market caps of select stablecoins are trending down, and our Media team takes a look at how regulators are responding to the censorship-resistant nature of Ethereum.
This is the Delphi Daily. Let’s dive in.
🚨 In Case You Missed It
- NFTs owned by the bankrupt crypto fund, Three Arrows Capital were transferred to a Gnosis Safe wallet as liquidators explore an eventual sale.
- Etherscan will stop supporting Ropsten and Rinkeby testnets. The Ethereum Foundation also plans to move over to Goerli and Sepolia testnets.
- Fidelity launches a new fund to invest in ETH. The fund has already raised $5m from accredited investors.
- The EU finalizes the full legal text of its landmark crypto legislation that introduces licenses for wallets and exchanges.
📊 Select Stablecoin Market Caps Fall As Binance Moves To BUSD
- Since the start of September, the market cap of USDC is down -11%, USDP is down -5%, and TUSD is down -17%. On the other hand, the market cap of BUSD is up 10% during the same period.
- This divergence in the total supply of these stablecoins can be attributed to a move announced by Binance on Sept 5th. The exchange stated that it will auto-convert any USDC, USDP, and TUSD balances held by users to BUSD.
- Additionally, the exchange announced that it will delist spot trading pairs associated with these stablecoins and stop accepting them as margin assets for futures.
- Users can still deposit or withdraw these stablecoins, but they will be converted to BUSD for use on the exchange.
- While combining different stablecoins into one enhances liquidity and capital efficiency for traders, it also helps Binance increase the usage of its native BUSD stablecoin over others.
- The market cap of USDT, a major stablecoin that was not included in the announcement, remains unaffected during this period.
📺 Ethereum: The Big Red Line
- Ethereum is currently facing its largest battle test yet. In August, the U.S. Office of Foreign Asset Control (OFAC) sanctioned Tornado Cash and arrested its creator Alexey Pertsev.
- This caused Flashbots, Ethereum’s largest block builder, and other decentralized applications (dApps) to start censoring transactions on Ethereum, a supposedly permissionless network.
- How much power do the U.S. regulators have over Ethereum? Is Ethereum and its dApps truly decentralized? And will Ethereum survive?
- Show Notes
- 00:00:00 – Opening
- 00:00:34 – What makes Ethereum special?
- 00:02:36 – U.S. Regulators move against crypto.
- 00:04:10 – Tornado Cash sanctions & Alexey Pertsev’s arrest.
- 00:06:40 – Censorship by decentralized applications.
- 00:07:54 – Crypto fights back.
- 00:08:40 – Ethereum validator censorship scenarios.
- 00:11:27 – Consequences of U.S. regulations.
- 00:14:07 – The future of Ethereum.
- Social links:
- Resources:
🐣 Notable Tweets
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