CZ replied to the TUSD data tweet, TRU rose more than 30% in a short time

On March 1, CZ said in its response to the data analysis on its social platform that “in the past seven days, Binance has minted TUSD with a value of 130 million US dollars, and the circulation supply has exceeded 1.1 billion US dollars, ranking fifth among stable currencies”, so that more stable currencies can flourish.

Interpretation of this information:

Binance’s Contribution to Stable Currency

CZ, the CEO of Binance, made a statement on March 1st about the company’s recent actions in relation to stable currencies. According to CZ, in the past week, Binance had minted TUSD (True USD) with a value of $130 million. The circulation supply had exceeded $1.1 billion, ranking fifth among all stable currencies. The main purpose of this action was to create a more stable and successful platform for the different stable coins with which Binance works.

Stable currencies, as the name suggests, are cryptocurrencies that have stable values, and they are often backed by assets such as the US dollar or gold. Stablecoins can facilitate cross-border transactions and offer stability to the rapidly changing world of cryptocurrencies. Tether (USDT) is the most popular stablecoin, accounting for over 90% of all stablecoin volumes globally. However, Tether has been embroiled in several controversies, including doubts about its price stability, reserve backing, and accounting practices. Therefore, there is a clear need for alternative stablecoins to gain greater adoption.

Binance, one of the largest cryptocurrency exchanges, was among the early adopters of stablecoin trading pairs. The company has consistently listed new stablecoins on its platform and has even launched a new stablecoin called Binance USD (BUSD). By minting more TUSD, Binance is creating more liquidity in its TUSD trading pairs, leveling the playing field for various stablecoins, and offering more options to its users. As more traders participate in TUSD trading pairs, its supply and demand forces are balanced, resulting in a more stable price than Tether.

With the issuance of TUSD, Binance is demonstrating its commitment to making the stablecoin market more transparent and trustworthy. Binance understands the pain points of crypto traders and is applying a solution-orientated approach by not relying solely on Tether. This action will help promote greater diversification in the cryptocurrency industry and ultimately bring more stability to the market.

In conclusion, CZ’s statement shows that Binance can play a crucial role in providing a more stable and reliable platform for traders, the blockchain industry, and the cryptocurrency world in general. Despite the prevailing instability of the cryptocurrency market, the use of stablecoins can help reduce potential financial risks and encourage more mainstream usage. It is no doubt that CZ and Binance remain committed to promoting this growth area in the coming years.