According to the announcement, the exchange will continue to support USDC, USDP, and TUSD withdrawals until September 23rd and will delist these currencies and their spot market pairs on September 26th at 06:30 AM UTC. The announcement states:
“To increase user liquidity and capital efficiency, WazirX will implement BUSD automatic conversion at a 1:1 ratio to users’ existing USDC, USDP, and TUSD stablecoin balances.”
Users who hold any of these three currencies until a given deadline will have their holdings automatically converted to BUSD.
WazirX is following in the footsteps of exchange giant Binance, who announced that it will no longer support the coin in question after September 29th.
Binance has revealed that it has not delisted UDSC, TUSD, and USDP. Exchanges are simply removing the ability to trade these assets. A user still holding the coin in question will see that the balance was converted to his BUSD on September 29th. However, the user can still deposit or withdraw her USDC, TUSD, or USDP after the change.
What is the purpose?
Both exchanges claim that removing these coins will improve liquidity and capital efficiency for users. His CEO of Binance, Changpeng Zhao, tweeted about the decision to limit USDC and others, stating:
It will not be delisted. USDC deposits and withdrawals are still possible. Just merge all the liquidity into one pair. Best price for users, minimum slippage.
— CZ🔶 Binance (@cz_binance) September 5, 2022
USDC declines in popularity
crypto slate A recent study revealed that USDT and USDC exchange balances are moving in opposite directions.
After the May 9th Terra Luna demise, USDC and USDT have grown to make up about 80% of the stablecoin market. However, within three months USDT surpassed USDC.
USDC’s involvement in Tornado Cash (TORN) sanctions has become the focus of the stablecoin battle. As soon as the Tornado Cash sanctions were announced, USDC issuer Circle began blocking all wallets linked to Mixer.
The Tornado Cash ban drew significant criticism from the community, as did the Circle’s immediate compliance with the sanctions. USDC then fell further against his USDT.
according to crypto slate According to analysis, USDT balances held on exchanges have doubled over the past year to reach $17.7 billion. Meanwhile, USDC is down 70% of his, from $7 billion a year ago to his $2.1 billion.