Binance recently announced the launch of a new token BFUSD, which has come under controversy even before its release. Anyway, Binance is a big market, let's dive into its BFUSD wave:
A Volatile Stablecoin
BFUSD will be used in Binance's UM Futures Wallet. That is, its name should be Binance Future USD. Some analysts were considering it to be the return of BUSD in a new form, but due to Binance giving different information at different places, it is not yet clear whether this new token is a stablecoin or not.
High APY Suspected
Binance is promoting a high APY rate of 19.56% for BFUSD; analysts are linking it to the 20% APY rate of Luna's UST. I am also suspicious of that impossible rate because it ruined UST even though UST was already in the market. BFUSD hasn't even been launched yet, so putting a high APY rate on it means Binance will mint it out of thin air.
Why launch BFUSD?
What is the importance of BFUSD? Only to promote Binance's futures? Then it becomes unnecessary because there is no valid reason to launch that token when there are millions of cryptos. It is also not clear if Binance has any partner in BFUSD or not. The need for this token has become unnecessary even before its launch.
