1/16 Second Great #Stablecoin War incoming! 🤺
Why?
Let's find out together!
A thread by @esatoshiclub!
Why?
Let's find out together!
A thread by @esatoshiclub!
2/16 #Binance deliberately started a war with @circle's $USDC as soon as it announced it would automatically convert users’ deposits of #USDC to their own #stablecoin $BUSD
It's clear that @binance wants to chunk a big piece of this market. But would it be able to dethrone USDC?
It's clear that @binance wants to chunk a big piece of this market. But would it be able to dethrone USDC?
3/16 Let's talk numbers. #Binance made the first major move and $BUSD's share of the #stablecoin market increased from 10.01% to 15.48%.
Also, its market cap has also risen 3.3% over the last 30 days.
One simple move, a significant outcome. The art of war at its finest.
Also, its market cap has also risen 3.3% over the last 30 days.
One simple move, a significant outcome. The art of war at its finest.
4/16 Keep in mind that all these increases are made by taking big chunks out of $USDC.
Furthermore, while @Binance is directly attacking $USDC by simply changing its stablecoin with $BUSD, it could subtly attack @Tether_to as well.
Furthermore, while @Binance is directly attacking $USDC by simply changing its stablecoin with $BUSD, it could subtly attack @Tether_to as well.
5/16 We all know the problems Tether and $USDT is facing.
Plagued with reputational problems and market concerns about its reserve assets, Tether is run by shadowy people behind
@bitfinex, an offshore #cryptoexchange, without regulation.
So, why not get a strike at them, too?
Plagued with reputational problems and market concerns about its reserve assets, Tether is run by shadowy people behind
@bitfinex, an offshore #cryptoexchange, without regulation.
So, why not get a strike at them, too?
6/16 While Binance directly attacks #Circle's #USDC, trying to get it out of second place, #Tether cannot be dethroned in such a manner.
With 48% of the total #stablecoin market, it is hard to blow a strike without some consequences. That's why #Binance made a smarter move.
With 48% of the total #stablecoin market, it is hard to blow a strike without some consequences. That's why #Binance made a smarter move.
7/16 What's #Binance doing then? Well, not much. However, it's now easier to use BUSD or USDC, if we are to compare them to USDT.
The ease of applying USDC to a BUSD-denominated margin will always prevail over the extra step of converting USDT into BUSD.
Again. The art of war.
The ease of applying USDC to a BUSD-denominated margin will always prevail over the extra step of converting USDT into BUSD.
Again. The art of war.
8/16 Well, we talked about the "how". Let's focus our attention on the "why".
Again, let the numbers help us.
#Circle estimated it could earn $438 million in total interest income this year and as much as $2.2 billion in 2023 out of $USDC.
Again, let the numbers help us.
#Circle estimated it could earn $438 million in total interest income this year and as much as $2.2 billion in 2023 out of $USDC.
9/16 Huge sums that could greatly increase the revenue of @binance if their stablecoin were to get $USDC's second place in the hierarchy.
No doubt, @cz_binance and his financial team want the cold, hard cash to develop major #web3 projects!
No doubt, @cz_binance and his financial team want the cold, hard cash to develop major #web3 projects!
10/16 Oh, one more thing to add. Popularity. Reliability. Volume.
Don't understand?
These three words are the leverage that @binance has over @circle.
Being the biggest #cryptoexchange in the world and having a huge #crypto figure as CEO, @binance can make major changes.
Don't understand?
These three words are the leverage that @binance has over @circle.
Being the biggest #cryptoexchange in the world and having a huge #crypto figure as CEO, @binance can make major changes.
11/16 Being backed by @FTX_Official, Blackrock and even government officials, @circle is no joke.
With such connections and back up it would be a hard battle for @binance to dethrone this monster that intends to dominate the entire #Crypto landscape in the following years.
With such connections and back up it would be a hard battle for @binance to dethrone this monster that intends to dominate the entire #Crypto landscape in the following years.
12/16 A bold move that @circle made in this war is the following.
As of 2023, USDC will be the one and only stablecoin for @cosmos, a partnership that will extend the availableness of $USDC to 14 blockchains.
As of 2023, USDC will be the one and only stablecoin for @cosmos, a partnership that will extend the availableness of $USDC to 14 blockchains.
13/16 Also, don't forget about @Polkadot @NEARProtocol @optimismFND and @arbitrum. All of them will let $USDC on their blockchain by the end of 2022.
Could these #blockchains cover the loss of @binance for Circle?
Could these #blockchains cover the loss of @binance for Circle?
14/16 While @binance is flexing its dominance as the world's biggest exchange, @circle appears to be flexing its ability to strike deals with strategic partners.
As we all know, many wars have been won by strategic partners, not big budgets.
As we all know, many wars have been won by strategic partners, not big budgets.
15/16 Let's prepare for one of the greatest wars in #crypto history.
On whose victory are you staking your money? We believe in @cz_binance!
Yet, this freezing #crypto winter can drastically change the outcome of the battles.
On whose victory are you staking your money? We believe in @cz_binance!
Yet, this freezing #crypto winter can drastically change the outcome of the battles.
16/16 Who do you think will win this #stablecoin war? Let us know in the comments!
Also, don't forget to RT the first tweet and subscribe for the latest #crypto news.
Also, don't forget to RT the first tweet and subscribe for the latest #crypto news.
• • •
Missing some Tweet in this thread? You can try to
force a refresh
