The $USDC/ $USDT exchange rate has crashed 😂. After Binance launched UC wealth management, the exchange rate for converting UT back to UC is only 0.999!

This means that for an exchange of 10,000, you will lose 90, which is equivalent to three days of wealth management earnings. Why did it crash?

Foreigners prefer to use $USDC, believing it to be compliant with lower de-pegging risks, so they prioritize UC for deposits and withdrawals. However, the current market share leader is still $USDT, and the liquidity of UT is much better for trading contracts denominated in U. So foreigners will deposit $USDC and then dump it, converting it to $USDT.

Therefore, Americans deposit $USDC -> need to convert to the more widely adopted $USDT -> the demand for $USDT increases -> $USDC falls.

Although I just converted UT to UC and got caught up in this wave of wealth management on Binance. The good news is that it shows foreigners are still optimistic about the market outlook.