The founder of Binance, Changpeng Zhao (CZ), has denied allegations that he sought a presidential pardon from Donald Trump after contributing to the creation of the company's Trump-related stablecoin, USD1, from World Liberty Financial (WLFI). Although Binance played a key role in the development of this stablecoin, which became the fifth largest in the market, CZ denied any connection between this involvement and his request for clemency.
According to a Bloomberg report, Binance reportedly not only created the smart contract supporting WLFI's USD1 stablecoin but also promoted it to its 275 million users. Additionally, the Emirati company MGX allegedly invested $2 billion in Binance via USD1 rather than a competing stablecoin. However, it is unclear whether WLFI compensated Binance or CZ for the creation of the stablecoin.
In response to these allegations, CZ firmly rejected any connection between his involvement in the USD1 project and his request for a presidential pardon. He called these claims 'baseless' and emphasized that his previous legal troubles with U.S. authorities were unrelated to these events.
The impact on the BNB market
Although these allegations have not been ignored by investors, the impact on the BNB market seems relatively limited. Glassnode data shows a slight cooling in BNB market dynamics, with a 5% decrease in daily active addresses and a 20% drop in on-chain volume. However, funding rates have remained stable, suggesting a period of calm ahead.