A Crypto Mystery: Who Controls This Fast-Growing Stablecoin?
bitcoin trading fees for the stablecoin. That sparked huge demand for TrueUSD as investors rushed to buy the stablecoin to enable free bitcoin trading. The exchange now controls more than 90% of all TrueUSD tokens currently in circulation, according to data from Arkham Intelligence.
“I’m definitely questioning why Binance is doing this and why Binance is involved," said Austin Campbell, an adjunct professor at Columbia Business School, who previously worked at Paxos, a stablecoin issuer and former Binance partner company. “They’ve clearly made a decision to prioritize TrueUSD on their platform." Binance has maintained that it hasn’t signed an agreement with Sun or anyone else to promote TrueUSD. Its push to boost the token comes as the exchange has been scaling back under growing financial and regulatory pressure.
It had previously been focused on expanding its own stablecoin, Binance USD, and by last fall had all but delisted its rivals. In February, however, the SEC threatened to sue Paxos, which issued Binance USD, and New York regulators banned new issuance of the token. Since then, Binance USD’s market cap has fallen to $3.4 billion from more than $23 billion at its peak.
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