Crypto traders on Binance received a quick announcement of the delisting of Stable USD (USDS).
The delisting was to be effective June 24th at 7 am (UTC).
Deposits and withdrawals of USDS are now suspended.
Users’ balances of USDS on the exchange will be converted to Binance USD (BUSD) in 3 days.
The USDS Team cites a change in focus in developing a second generation of stablecoins and asset-backed tokens.
In an abrupt Tweet, the crypto exchange of Binance announced that it was delisting Stable USD (USDS) effective today, June 24th, at 7 am UTC. Additionally, deposits and withdrawals of USDS were also suspended immediately the announcement was made.
Users Can Opt to Have their Funds Automatically Swapped With Binance USD (BUSD)
Users who trade or own USDS were given the following options with respect to their funds.
Trade out of existing USDS tokens before delisting.
Continue holding their USDS tokens and have them swapped for Binance USD (BUSD) in 3 days at a ratio of 1 USDS = 1 BUSD.
With respect to the delisting of trading pairs, Binance CEO, Changpeng Zhao, chimed in and explained it would be carried out based on liquidity. The pairs with the least trade volume were be delisted first.
Delisting is based on liquidity. Low volume pairs gets removed first, if it is down to the last pair, then delisting. Low volume = less users.
Binance’s Explanation for Delisting StableUSD (USDS)
Furthermore, the team at Binance provided the following reason as to why StableUSD (USDS) was delisted from the crypto exchange.
In order to protect our users, the Binance team conducts comprehensive and periodic reviews of each digital asset listed on our platform to ensure projects maintain a high standard of quality. In the event a coin or token falls below this quality standard, it will be subject to further review and potentially delisted.
Going forward, we remain committed to protecting our users and all Binance stakeholders and will continue to perform periodic reviews of all listed coins and tokens.
StableUSD’s Explanation for the Delisting of USDS
Further investigating the Stably Official Telegram Group that is home to the USDS discussions, the team explained that they were relocating their resources to more important projects launching soon with enterprise clients.
The team at StableUSD further explained that USDS is still backed by the US Dollar and that they will be focusing on building a new generation of stablecoins and asset-backed tokens for enterprise clients.
The full announcement on Telegram read as follows.
– Stably is currently consolidating the presence of our USDS stablecoin across exchanges in order to re-allocate our resources to other important projects we are launching soon with enterprise clients.
– USDS is still fully backed 1-to-1 with USD by Prime Trust and can be issued or redeemed freely 24/7 via stably.io. Any ERC20-supported wallet will also be able to hold USDS tokens.
– USDS issuance/redemption will also be integrated into our upcoming Stably Prime Borderless Account, allowing users to instantly send/receive money to/from anyone in the world 24/7. For more information about Stably Prime, please visit: stably.io/stablyprime
– Stably is focusing on building Generation 2 stablecoins and asset-backed tokens for enterprise clients through our Stably Enterprise business line at the moment. Once these projects are officially launched, we will also work with our exchange partners and other ecosystem partners to list and integrate these new tokens. To learn more about Stably Enterprise, please visit: stably.io/stablyenterprise
We have several international fiat-backed stablecoins as well as commodity-backed tokens in our pipeline for clients ranging from exchanges to payment companies and other stablecoin projects. Some are scheduled for launch this summer as well as throughout the rest of 2020. Stay tuned for more announcements coming soon from #TeamStably!