Binance clarifies BFUSD misconceptions, reveals margin trading plans
Binance подтверждает, что BFUSD не является стейблкоином
Binance, the international cryptocurrency exchange, has addressed concerns surrounding its upcoming BFUSD token, clarifying that the product is not a stablecoin and has yet to be launched.
Speculation arose following a post by Zoomerfied on X, which claimed Binance was introducing a stablecoin with an annual yield of 19.55%. This prompted comparisons to the failed TerraClassicUSD (USTC) by Terraform Labs, Cointelegraph reports.
The parallels to the collapse of Terra in 2022, which caused significant losses across the cryptocurrency market, sparked intense discussions on X. Binance, however, quickly dispelled the rumors. “BFUSD is not yet launched. To be clear, it is not a stablecoin but a reward-bearing margin asset for futures trading,” Binance Customer Support confirmed in a post on X.
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What is BFUSD?
According to Binance’s official product page, BFUSD is a margin trading asset designed to reward users without requiring them to stake or lock up funds. Instead, traders can hold BFUSD in a “UM wallet,” with daily airdrops credited to their “UM Futures Wallet” based on snapshots of their holdings.
User eligibility for BFUSD will depend on their “VIP level,” a ranking system tied to social activity on the Binance platform. This limited access and reward structure set BFUSD apart from traditional stablecoins, which are typically pegged to fiat currencies or assets.
Community reactions and comparisons to Terra
Despite Binance’s clarification, the initial announcement sparked concerns among crypto traders and commentators, many of whom drew parallels to the Anchor Protocol. Anchor famously offered a 20% annual return on Terra’s algorithmic stablecoin, USTC. Terra’s collapse in May 2022, which erased $18 billion in USTC’s market value, remains a cautionary tale in the industry.
Pseudonymous trader RunnerXBT expressed skepticism in response to Zoomerfied’s claim. “How... how much did Anchor... did... Yield?” he wrote, referencing the unsustainable returns once promised by the Terra ecosystem.
Avoiding past mistakes
While Binance has clarified BFUSD’s nature, the comparisons to Terra highlight ongoing skepticism about high-yield crypto products. By positioning BFUSD as a margin trading reward rather than a stablecoin, Binance underscores the importance of transparency in a market still haunted by past failures.
Meanwhile, Binance continues to grow, surpassing 240 million registered users, according to CEO Richard Teng. This milestone reflects the exchange’s resilience and its efforts to maintain trust in an increasingly competitive industry.
