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Finding a way out for its stablecoin! Unafraid of USDT shortage concerns, Binance increases its blended margin limit to 1 million.

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Finding a way out for its stablecoin! Unafraid of USDT shortage concerns, Binance increases its blended margin limit to 1 million.

According to reports from multiple Binance users yesterday, it appears that Binance's futures trading has exhausted all USDT funds, causing users to be unable to go long. The emergency transfer of 5 million USDT from Tether to Binance further confirms the possibility of USDT depletion.

Table of Contents

  • Analysts Suggest Exiting to Observe the Market
  • Multiple Binance Users Complain of Order Book Delays

Bull Market Unable to Go Long

According to the large transfer monitoring platform Whale Alert, a USDT transaction occurred yesterday afternoon, with the crypto community generally optimistic that this $5 million transfer will further expand the bullish trend.

Although Bitcoin recently broke through $10,400 and maintained above the key level, it seems unable to push higher, with the price settling at $10,157 at the time of writing. Analyst Jacob Canfield also pointed out:

Bitcoin's dominance is approaching a key support level, and due to the insufficient USDT reserves on Binance, I may observe for a few days, recommend exiting some assets to lock in profits, or set stop-loss points.

No Response from Tether or Binance

Although not explicitly admitting the issue of insufficient USDT reserves, Binance CEO Changpeng Zhao (CZ) responded on Twitter regarding order delays on the exchange, stating:

In some trading pairs, there are slight delays in the order book data, and the team is working hard on it. Funds are #SAFU (Secure Asset Fund for Users).

https://twitter.com/cz_binance/status/1227894923120136192?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1227894923120136192&ref_url=https%3A%2F%2Fbeincrypto.com%2F5m-usdt-moved-from-tether-treasury-to-binance-as-loans-run-dry%2F

Nevertheless, some users criticize CZ for only focusing on listing more trading products and ignoring user experience. User Crypto Michaël responded below CZ's tweet criticizing:

This should be the last time you consider improving the user interface before listing more products, right? Optimize the interface first before doing anything else. If users mess up their trades due to order delays, having 50x leverage is meaningless.

User BullTrendz also angrily stated:

Ok, thank you. My funds were locked up all night during Bitcoin's surge, couldn't cancel orders or place new ones, I lost money, user funds are not safe at all.

Promote Stablecoin BUSD and Increase Collateral Limit

Despite concerns about insufficient USDT, Binance announced yesterday that the mixed-margin borrowing limit has been raised to 1 million USDT.

Mixed-margin refers to using other currencies as collateral to borrow USDT for margin trading. Users using mixed-margin can participate in contract trading without selling their held coins or transferring them to a contract wallet. Mixed-margin has no borrowing interest rate and no time limit.

Currently, only BUSD is allowed as mixed-margin collateral, with more currencies to be added in the future. Binance has rolled out many favorable policies for BUSD in contract trading, including zero trading fees for placing orders, and lower borrowing rates than USDT, all aimed at promoting the use of BUSD in trading.

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