CZ Dismisses Centralization Fears Amid Scrutiny Over Binance’s Grip on USD1 Stablecoin
CZ dismissed concerns over Binance holding 87% of the USD1 stablecoin supply, citing the exchange's large scale.Summary
A Forbes report revealed that Binance and its users control approximately 87% of the USD1 stablecoin's circulating supply, raising concerns about concentration risk, especially given USD1's links to World Liberty Financial (WLFI) and the Trump family. Changpeng Zhao (CZ), Binance founder, pushed back against centralization fears, arguing that Binance historically holds large shares of most stablecoins due to its massive scale as the largest exchange, often accounting for 60-70% of centralized exchange holdings across assets. The concentration was also fueled by Binance promotions rewarding USD1 holders. Analysts warned of theoretical risks associated with such heavy single-exchange concentration, while critics questioned USD1's purpose, calling it "never meant to be a real stablecoin." Both Binance and WLFI deny that the concentration implies undue influence, framing the exchange's role as standard listing and distribution.
(Source：BeInCrypto)