In the crypto industry, as in every other industry, when one starts a trend that seems to be beneficial or has the potential to lead to positive results, others tend to follow it too. This article deals with one such event wherein the Indian exchange WazirX, led on in the footsteps of Binance and tried to adopt its ways. It has also decided to come up with new ways and intermix them with the ways Binance chose for delisting USDC. It is planning on employing BUSD auto-conversion for keeping a track of the USDC, and USDP balances. These are supposed to be done in a 1:1 ratio.
Let’s take a look at WazirX steps for delisting USDC
After thorough consideration, WazirX has come up with a plan to delist coins coin. These coins are therefore supposed to be evicted from the platform and whatever remains of them shall and must be converted into Binance USD stablecoin. This announcement was made by WazirX on a Monday. In this announcement, he further stated that it has put an end to the deposition coins such as USD, Pax dollar, TUSD, etc. It has put an end to it all for good and has decided to adopt the new or to be more specific Binance.
Reasons for introducing BUSD to users
It is obvious that when something goes on in the crypto market, the authorities feel obligated to share the news with the people to help them make informed decisions. The main reason for the introduction of BUSD stablecoin is primarily to give liquidity a little more boost up as well as help users are more capital efficient. It is also planning upon applying this technique to convert the balance that is already existing in the account of the users.
The authorities have further stated that the users can be able to see their stablecoin only in the account that is under BUSD. It is to be done after the conversion is fully completed. The Indian exchange assets, WazirX is still tet to reach a decision regarding the list of stablecoin that is appropriate for conversion.
What are its plans with another stablecoin?
To shed further light upon this aspect it has also been stated that the withdrawal related to USDC, USDP, etc shall exist there on the WazirX for a very few days. After a period of a few days, this stablecoin shall permanently be delisted from their spot trading pairs. There have been various reports that have suggested in what way WazirX used to handle USDC. It has already delisted several stablecoins and the only surviving one includes, USDC trading against Tether, which is there on the platform.
However, when compared between the two one can see that BUSD is present on the WazirX platform, in not only one but two pairs. Thes two parts of BUSD have been trading at the same time, One against USDT stablecoin and the other against the Indian rupee. The amount of total trading volume has been estimated to be around 5,700 to 5,200 dollars.
Before everything, it is important to also undertake the original USDC. It was created by the fintech firm Circular as well as the Coinbase crypto exchange. It has also established itself as one of the most popular stablecoins which are also referred to as the second largest stablecoin. The decision to remove USDC by WazirX has been taken right after Binance published its decision saying that the USDC shall henceforth be eradicated from its platform.
It also stated the same things under the changes that users might expect. Even though the two, Binance and WazirX sound similar in their ways, they are both unrelated to each other which was even made clear properly.