Despite Launching Its Own Stablecoin, Binance CEO Criticizes Them For Being ‘Misnomers’
Binance recently launched its own stablecoin stacked against the Sterling Pound. However, its CEO, Changpeng Zhao, doesn’t seem to be a big fan of crypto. He tweeted on Friday that stablecoins are the biggest misnomers in the crypto world, arguing that they dropped in value over 3 times against Bitcoin.
Stable coin is the worst misnomers in crypto. There is nothing stable about it.
While 1 btc still = 1 btc, "stablecoins" have dropped by 3x in value against btc in the last 6 months.
If you still like it, we just launched our #BGBP on @BinanceJE. 🙏
— CZ 🔶 Binance (@cz_binance) July 19, 2019
Last month, Binance launched is stablecoin, BGBP, on the ecosystems stable crypto trading platform, where users can convert fiat to crypto and vice versa easily. While most existing stablecoins have chosen USD as the stacked currency, Binance went with GBP, and the project is still in the testing phase.
Binance Chain, with the launch of BGBP, is now one of the most equipped crypto networks in the world. It has a centralized crypto exchange called Binance, a decentralized exchange by the name of Binance DEX, a stable fiat to the crypto trading platform, named Binance.JE, a native cryptocurrency, Binance Coin (BNB), and finally a stablecoin, BGBP.
However, CZ criticizing stablecoins comes at a time when a giant like Facebook is ready to disrupt the market with its stablecoin Libra. Once it surpasses the initial hurdles created by the government, it Libra could become the most widely used digital currency, because Facebook itself has a user base of over 2 billion people. And then there are 28 other backers, including PayPal, VISA, MasterCard, Uber, etc.
Binance is currently the largest crypto exchange in the world; its decentralized counterpart is also moving towards glory. If Facebook manages to break the barriers, is Calibra trading platform would pose a serious threat to the dominance of Binance, Coinbase, Huobi, etc.
CZ argues that Bitcoin’s value has grown tremendously, against it, most stablecoins have lost their values. Simply put, If Bitcoin was at $3,000 and grew by over thrice to $10,000, the stablecoin loses 3× as Bitcoin grows. While this argument might sound legit, there are other factors too. For instance, the volatility of Bitcoin, upwards or downwards, is far greater than fiat but tokens. And it’s this volatility that makes people choose a stablecoin over Bitcoin.