As many of you may be aware, Binance delisted TerraUSD (UST) in May 2022, after the stablecoin depegged from the US dollar. The process and news of the depegging was detonated by a number of factors, namely a large sell-off of UST and a lack of liquidity in the Terra ecosystem.
Binance published a number of reasons for delisting UST, some of which I list below:
- Preocupation about the stability of the Terra project. The depegging of UST raised concerns about the long-term feasibility of the Terra ecosystem. Binance aanounced that it was "unable to guarantee the long-term stability of the Terra project."Personally, this is one of the reasons I still trust in Binance, they seem transparent and communicative. Besides, they are one of the founding exchanges still standing and strong.
- The potential for user harm. Binance stated that it was worried about the potential for users to lose money if they traded or held UST. The exchange also stated that it was concerned about the potential for UST to be used in scams or illicit activities.
- The impact on the Binance ecosystem. Binance stated that it was concerned about the impact of the Terra depeg on its own ecosystem, in particular it's Binance token. The exchange stated that it was "committed to protecting the interests of its users and the Binance ecosystem."
The delisting of UST by Binance was a major setback to the Terra project. However, the project has since taken steps to try to revive UST and the Terra ecosystem. The project has also launched a new stablecoin, TerraUSD II (USTC), which is pegged to the US dollar.
It is important to note that Binance is not the only exchange that has delisted UST. A number of other exchanges have also delisted the stablecoin, due to concerns about its stability.
It is also important to note that the cryptocurrency industry is still relatively new and volatile. As a result, it is important to do your own research before investing in any cryptocurrency, including USTC. Last, but definitely VERY IMPORTANT, is noting that this is not financial advice. It is imperative that you do due dilligence and NEVER invest in Crypto more than you can afford to lose. It is for that reason, that I recmmend for beginners to earn Crypto through surveys, or faucet on platforms like Cointiply, or by completing daily missions on Crypto.com. Coinbase, also has earning opportunities like LEARN TO EARN, where you watch and complete some exercises and get some modest Crypto amounts in return. I call it a win-win situation, because educating yourself is primal before taking any action like investing in a Cryptocurrency.
By the way, what do you think of UST? Did you ever invest in a Crypto pair with UST?
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