The cryptocurrency market, which had been somewhat calm previously, was abruptly disrupted today when Bitcoin’s price fell by 2% from its starting price. This negative trend caused cryptocurrencies like XRP to lose 3.37% of their value, while Ethereum (ETH) only dropped by a paltry 2.2%.
Such oscillations are normal in the cryptocurrency industry, which is renowned for its innate volatility. The society was captivated, though, as a fascinating episode developed.
A staggering $213 million worth of TrueUSD (TUSD) stablecoin was created in a couple of minutes around an hour ago. The largest cryptocurrency exchange in the world, Binance, was questioned regarding its role in this incident. Binance has demonstrated a preference for TUSD in light of recent problems using its native stablecoin, BUSD, thereby emerging as a key issuer of this stablecoin.
https://x.com/whale_alert/status/1704835501721858095?s=20
Speculation over Binance’s participation in responding to the market’s abrupt collapse has been sparked by the enormous TUSD creation. Was this a tactical response to the unanticipated drop, or was it prompted by the requirement for more TUSD liquidity to satisfy the soaring demand for trading pairs? According to some analysts, it may be distributed for market-making and manipulation activities or to inject liquidity into the market during unstable times.
According to Changpeng Zhao, CEO of Binance, stablecoins are the “fuel” that powers the cryptocurrency market. However, it is still unclear what this “fuel” infusion will be used for and where it would go.
