The crypto market, which had recently been relatively stable, experienced a sudden disruption today as Bitcoin's price dipped by 2% from its opening value. This downward shift had a ripple effect, causing altcoins like XRP to lose 3.37% in value, while Ethereum (ETH) experienced a modest 2.2% decline.
Such fluctuations are not uncommon in the crypto space, known for its inherent volatility. However, an intriguing incident unfolded that left the community intrigued.
Approximately an hour ago, an astonishing $213 million worth of TrueUSD (TUSD) stablecoin was minted within a matter of minutes. This event raised questions about the involvement of Binance, the world's largest crypto exchange. With recent issues surrounding its native stablecoin, BUSD, Binance has shown a preference for TUSD, effectively becoming a kind of prominent issuer of this stablecoin.
💵 💵 💵 53,183,900 #TUSD (53,107,155 USD) minted at unknown wallethttps://t.co/YLFeLIKL1h— Whale Alert (@whale_alert) September 21, 2023
The massive TUSD generation has prompted speculation about Binance's role in responding to the market's sudden downturn. Was this a strategic move to address the unexpected collapse, or was it driven by the need for additional TUSD liquidity to meet surging demand for trading pairs? Some experts suggest it could be allocated for market-making and manipulation purposes or to infuse liquidity into the market during periods of instability.
Stablecoins, as highlighted by Binance's CEO Changpeng Zhao, play a crucial role on the crypto market, being its "fuel." Nonetheless, the exact purpose and destination of this "fuel" injection remain uncertain.