The World Liberty Financial (WLFI) company belonging to the Trump family has announced the launch of its own Stablecoin USD1 in Ethereum and BNB Chain networks.
The announcement of the launch of the USD1 token coincides with rumors that the Trump family had talks with Binance regarding the acquisition of shares in the cryptocurrency exchange. It was even speculated that the negotiations included possible presidential pardon for Changpega “Cz” Zhao, former general director of Binance, entangled in legal disputes with the American authorities.
First reaction – a confusion on the market
Starting Stablecoin as part of a decentralized protocol related to Donald Trump and his family caused an avalanche of comments on the cryptocurrency market. Also, people decided to use this noise, and this in turn aroused concerns about the possibility of the appearance of potential fraud.
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Over the past few weeks, Blockchain researchers have reported increased activity around the token called World Liberty Financial USD1 (USD1) in Ethereum and BNB Chain networks. It is worth noting that some transfers were associated with addresses related to Wintermute and Bitgo, which aroused speculation about institutional involvement.
World Liberty Financial mentioned the plans to introduce Stablecoin coin as part of their Defi strategy in the fourth quarter of 2024. Experts dealing with blockchain were convinced that USD1 is just the project.
The former boss of Binance, Changpeng Zhao, recently confirmed that the intelligent USD1 contract was implemented in BNB Chain at the beginning of this month.
https://twitter.com/cz_binance/status/19042292917001079
However, he denied the agreement between Binance and Trump, as well as the existence of any presidential pardon. Despite this, there is still speculation about potential connections between the new American government and the cryptocurrency sector.
USD1 in the test phase
For now, however, USD1 is in the test phase, in the eTHEREUM and BNB networks there are about 3.5 million tokens. Although cryptocurrency cannot be officially traded (as Changpeng Zhao mentioned in his tweet), the expectations associated with it attracted the attention of fraudsters who are trying to earn by introducing fake tokens to the market.
This is another proof that there is a constant risk in the world of cryptocurrencies, and investors should be vigilant, constantly broadening their knowledge and use safe tools, trade platforms and cryptocurrency portfolios.
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Genius Act can affect the future of the stableins
Currently, a race is underway among financial institutions and fintech companies for the entrance to the Stablecoin sector, with particular emphasis on the niche of cross -border payments.
Stablecoin is a key element of cryptocurrency landscape, serving as a bridge between decentralized finances (DEFI) and traditional finances (Tradfi). They offer more stable digital assets for transferring funds to and unstable cryptocurrencies. From the beginning of the Uprising, they have become invaluable for both investors and institutions.
As the market evolutions, the appearance of new regulations regarding the Stablecoin seems to be more and more likely. This, in turn, can drive the creation of new cryptocurrencies of this type, such as the USD1 token controlled by a company associated with the Trump family.
The USD1 debut is at a critical moment for the American cryptocurrency sector. Congress is considering approval of the act Guiding and establishing National Innovation for Us Stablecouinsknown as Genius Act. This measure that would regulate the use of Stablecoin in the United States was approved by the Senate Banking Commission on March 13 and may soon be put to voting.
According to Hines, the executive director of the President’s advisers for digital assets, the Act may go to Trump’s desk for official signing by June 2025. The result of the regulation may have a direct impact on the future of USD1 and other Stablecoin operating in the USA.
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