TrueUSD Postpones Binance Launch to Address Liquidity Concerns

24

There is a lot of competition among the so-called stablecoins. Most cryptocurrency users are familiar with USDT, issued by the Tether company. In recent months, TrueUSD has begun making a name for itself as well. Unfortunately, it seems that newest stablecoin will not be listed on Binance just yet.

A lot of cryptocurrency enthusiasts were surprised to learn about TrueUSD. Similar to USDT, its value is pegged to the US Dollar at a 1:1 rate. These “digital dollars” may pave the way for a broader adoption of cryptocurrencies in general. However, TrueUSD has yet to make its way to some of the bigger exchanges. So far, it is listed on Bittrex, which is one of the bigger altcoin trading platforms.

No TrueUSD on Binance Just Yet

There was some speculation as to TrueUSD being listed on Binance. While the world’s largest exchange plans to do that, it will not happen as of yet. Instead, the listing has been postponed by a few days. The team requires more time to prepare for sufficient liquidity, according to the Binance blog. That is very broad and vague statement, to say the least.

There can only be as many TUSD tokens as there are US Dollars held in reserve. Providing additional liquidity will be impossible unless the demand increases. Another option is to increase the supply by having team members and investors provide additional funding prior to the Binance listing. The exact plan of action remains a bit unclear at this stage.

If all things go according to plan, TrueUSD will come to Binance on May 22nd. Deposits are open already, but the trading will remain inaccessible until that date. It is an intriguing development, albeit not necessarily a negative one by any means. Addressing liquidity concerns prior to the launch is always the smart approach. It will be interesting to see how TUSD fares on a platform where USDT trading is extremely popular these days.

Header image courtesy of Shutterstock

Tags: , ,