- Binance is moving $3 billion Tether from TRON to Ethereum Network.
- Justin Sun deposited 100 million USDC on Binance.
- Sun withdrew the funds shortly after.
Huge transfers of capital have raised alarms among investors amid growing concerns over stablecoins and centralized exchanges. In the most recent development, Binance and TRON have captured the spotlight.
On Tuesday, December 13th, Binance moved $3 billion Tether (USDT) from TRON to the Ethereum network. The stablecoin issuer announced that it is working with the crypto exchange Binance to perform the transaction.
The transaction came as Binance saw a net $1.14 billion in withdrawals in 24 hours. This raised fears among some investors that the largest crypto exchange could face a bank run.
Sun initially withdrew funds from the exchange. In the transaction, the Tron Founder pulled 30 million BUSD and 15 million USDT out of the exchange, converting the USDT into USDC. Just hours later the same day, Sun deposited 100 million USDC into Binance.
Binance CEO Changpeng “CZ” Zhao suggested that the move was a part of deploying BUSD on TRON. However, he added that he is not directly handling the matter.
Sun’s deposits came just as Binance announced that it would be temporarily halting USDC withdrawals due to liquidity issues with regard to the stablecoin.
CZ claims that the tokens are fully backed, but the swaps couldn’t happen before the banks in New York opened.
Tron’s Stablecoin USDD Depeggs
In related news, Binance is moving $3 billion Tether from the TRON blockchain (TRC20) to the Ethereum blockchain (ERC20). The transfer comes amid concerns surrounding Tron’s algorithmic stablecoin USDD. Tron’s USDD coin is supposed to remain steady at around $1 per coin. However, the stablecoin came under pressure on Monday, dropping as low as $0.97.
Since then, USDD has been slowly trending upwards. At the time of publication, the token was trading at $0,9827.
Some investors are concerned that algorithmic stablecoins like USDD hold the same inherent risks as Terra-Luna. Earlier this year, the Terra (UST) stablecoin crashed to zero after losing its dollar peg.
On the Flipside
- The eccentric TRON founder Justin Sun is known for his publicity stunts. Big funds transferred from one wallet to another could just be a way to get attention. Some have suggested the transfers are intended to steady nerves, while some have contested the claim, opining that a deposit signifies the opposite.
Why You Should Care
Binance is the largest crypto exchange, and its collapse could have catastrophic consequences for the crypto market.