Little Fatty is here! Let me break down the USD1 and its listing on Binance for you~
First of all, what is USD1?
This thing is a stablecoin created by the Trump family, issued by their World Liberty Financial, pegged 1:1 to the US dollar. The reserve assets are US short-term government bonds and US dollar deposits, and they've partnered with BitGo for custody, aiming for a persona that's 'more compliant than USDT.' Eric Trump, the second son of Trump, personally endorses it, proclaiming 'the future of crypto dollars,' directly leveraging political backing.
What does it mean to be listed on Binance?
1. Crypto earthquake: Binance's operation directly caused USDC to crash, with a market cap evaporation of 5 billion dollars in 24 hours, while USD1's circulation surged to 2.1 billion, entering the top five global stablecoins. Bitcoin also soared to a historic high of 111,000 dollars, with DeFi protocols collectively integrating, this wave of enthusiasm is off the charts.
2. Institutional players entering: USD1's target clients are sovereign funds and hedge funds, big players. Binance's listing is like opening a VIP channel for them. Abu Dhabi's investment firm MGX invested 2 billion in Binance with USD1, making the market speculate whether there's an 'official attribute' involved.
3. Compliance card + political card: USDT has always been questioned about reserve transparency, and USDC had issues due to Circle's compliance problems. USD1 directly presents audit reports and BitGo custody, plus the Trump family's political background, especially at a time when the US (stablecoin bill) could pass, this operation seems like a strategic positioning in advance.
What are the differences between USDT and USDC?
- USDT: The veteran stablecoin leader, but its reserves include corporate bonds, which have been criticized for lack of transparency for years.
- USDC: A compliance model, but Circle almost lost its peg due to bank collapses and faced issues with the SEC.
- USD1: Backed by the Trump family, the reserves are more transparent (government bonds + US dollars), but the political risk is high. For instance, the US Congress is investigating whether the Trump family is profiting from tariff policies. If this escalates, USD1 might get caught in the crossfire.
What should investors pay attention to?
- Arbitrage opportunity: The price difference between Binance and Uniswap is 0.12%. Those who are quick can earn the difference by cross-chain trading, but be careful of slippage and gas fees.
- Staking yield: Protocols like Venus offer an annualized return of 6%-8%, but staking carries liquidation risks, so don't use too much leverage.
- Policy minefield: If the US stablecoin bill passes, USD1 will need to apply for a federal license, and the Trump family's exemption rights might spark controversy, effectively tying the coin's price to political maneuvering.
- Fake coin risk: 12 fake USD1s have already appeared on the BSC chain, don't get phished!
Summary: USD1's listing on Binance is essentially traditional capital + political power entering the crypto space to exploit retail investors. In the short term, it's an extension of 'dollar hegemony' in crypto; in the long term, it may become a tool for great power rivalry. For retail investors looking to participate, it's advisable to wait and see, and only invest small amounts once the market stabilizes, as this thing carries more political risk than USDT!