WazirX Delists USD Coin for BUSD Conversion

WazirX Takes a Bold Step

In an unexpected move, the popular Indian cryptocurrency exchange WazirX has officially decided to delist USD Coin (USDC). Starting from October 5, any remaining balances will be auto-converted to the Binance-backed Binance USD (BUSD). Talk about a stablecoin switcheroo!

Details of the Exchange

WazirX broke this news, revealing that along with USDC, it will also halt deposits for other stablecoins including Pax Dollar (USDP) and TrueUSD (TUSD). Now that’s what I call a heavy sweep of the digital carpets!

Conversion at a 1:1 Ratio

The exchange aims to boost liquidity and capital efficiency, stating that existing balances of USDC, USDP, and TUSD will be converted to BUSD at a 1:1 ratio. So, if you thought you were holding onto a trove of assets, prepare for a bit of a makeover!

What Happens Next?

Deposits: New deposits of USDC, USDP, and TUSD are no longer accepted.
Withdrawals: Users can still withdraw these stablecoins until Friday.
Delisting Date: The platform plans to officially delist these stablecoins from its spot trading pairs by September 26.

The Rationale Behind the Decision

A spokesperson from WazirX expressed the need for a regular reassessment of assets available on the platform. They noted that factors such as trading volume, liquidity, and the team’s commitment to the project are considered. If an asset fails to meet the exchange’s “high level of standard,” it goes through a more rigorous evaluation and possibly faces delisting. Better safe than sorry, right?

Market Impact and Comparison

Data indicates that WazirX has been trading a minuscule amount of USDC, with the only trading pair currently against Tether (USDT) logging around $3,400 in daily volumes. In contrast, BUSD is enjoying a more robust trading presence with pairs against both USDT and the Indian Rupee, sitting at respective volumes of $5,700 and $5,200.

Stablecoins and Their Futures

Launched by Circle and Coinbase, USDC is the second-largest stablecoin by market capitalization. However, it appears the tides are shifting after Binance plans to similarly remove USDC as a tradable asset and auto-convert these balances to BUSD. The hypothetical soap opera of stablecoins just got a new plot twist!