Wazirx Follows in Binance’s Footsteps Unlisting USDC, USDP and TUSD

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On Sep­tem­ber 19, WazirX, one of India’s lead­ing cryp­tocur­ren­cy exchanges, announced the delist­ing of Circle’s USDC, Pax­os’ USDP, and TrueUSD (TUSD) sta­ble­coins, effec­tive Sep­tem­ber 26, fol­low­ing in Binance’s footsteps.

Accord­ing to the state­ment, USDC, USDP, and TUSD deposits have already been sus­pend­ed. In addi­tion, users will have to with­draw their funds by Octo­ber 05, or they will be auto­mat­i­cal­ly con­vert­ed to BUSD —just like Binance did.

“Auto-con­ver­sion will be done on or before Octo­ber 05. After the Auto-Con­ver­sion is com­plet­ed, users will be able to with­draw USDC, USDP, or TUSD at a ratio of 1:1 from their BUSD balances.”

Tether’s USDT will still be supported.

WazirX’s Goal Is “To Enhance Liquidity And Capital Efficiency”

Accord­ing to WazirX, the delist­ing of USDC, USDP, and TUSD, seeks to enhance liq­uid­i­ty and cap­i­tal effi­cien­cy for users, a claim iden­ti­cal to what Binance made recent­ly when it delist­ed the same stablecoins.

Like Binance, WazirX end­ed its state­ment by indi­cat­ing that it could include oth­er sig­nif­i­cant sta­ble­coins. How­ev­er, the exchange did not pro­vide fur­ther infor­ma­tion in this regard.

The rela­tion­ship between Binance and WazirX is tricky. On its offi­cial site, WazirX claims it is affil­i­at­ed with the Binance group, so the deci­sion could be in line with Binance’s inter­ests to make BUSD one of the most impor­tant sta­ble­coins in the ecosys­tem, increas­ing its mar­ket cap­i­tal­iza­tion, which is cur­rent­ly around $20.52B.

How­ev­er, as Cryp­toPota­to recent­ly report­ed, Binance CEO Chang­peng Zhao (CZ) recent­ly said on Twit­ter that his exchange had not “acquired” WazirX due to pay­ment issues, so the delist­ing deci­sion (at least in the­o­ry) should have noth­ing to do with his company’s inter­ests, even though Binance offers wal­let ser­vices to WazirX, as well as off-chain trans­ac­tion solu­tions to help users save mon­ey on net­work fees.

Is USDC Losing The Favor of The Big Players?

Cir­cle Inter­net Financial’s USDC sta­ble­coin is one of the biggest com­peti­tors to BUSD, Binance’s sta­ble­coin. It cur­rent­ly has a mar­ket cap­i­tal­iza­tion of near­ly $50 bil­lion, well below the $67 bil­lion held by Teth­er (USDT).

Although Jere­my Allaire, CEO, and co-founder of Cir­cle, has recent­ly said that the actions tak­en by Binance were not harm­ful to USDC, the truth is that oth­er sig­nif­i­cant investors and projects, such as Mak­er­DAO, cre­ator of the DAI sta­ble­coin, are con­sid­er­ing delist­ing from USDC.

This action against USDC is tak­ing place a few weeks after the US Trea­sury Depart­ment sanc­tioned cryp­tocur­ren­cy mix­er Tor­na­do Cash, caus­ing Cir­cle to auto­mat­i­cal­ly block USDC 75,000 belong­ing to sev­er­al “unsus­pect­ing” Tor­na­do Cash users, as report­ed by devel­op­er Banteg.

WazirX’s native token WRX showed no major reac­tion to the news. It has been trad­ing side­ways since June, fluc­tu­at­ing between $0.18 and $0.24, with some excep­tion­al peaks along the way.

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