Information has appeared on the network about the plans of the largest crypto exchange Binance to launch a new BFUSD coin with suspiciously high profitability. According to the team of the trading platform, members of the crypto community mistakenly began to spread information that the token is a stablecoin. In fact, BFUSD is a profitable margin asset for futures trading
Crypto investors, in turn, saw in the coin the shadow of the collapsed $LUNA
cryptocurrency, whose holders could also count on high profitability at the moment. We tell you what is known about BFUSD and why the participants of the crypto community were skeptical about the project.
What is known about BFUSD
Reports that Binance is launching BFUSD appeared on the exchange's resources. The participants of the crypto community spread the information over the network in a matter of minutes.
According to reports, the yield of BFUSD will be adjusted. Against the background of the first news about the coin, the metric was at the level of 19.55%. A day later, the yield exceeded 100% per annum.
Presumably, users can use BFUSD as collateral for their transactions using leverage.
Due to the fact that initially there was no clear description of the coin on the platform's resources, the news took on incorrect outlines. Many have written that BFUSD is a stablecoin.
Due to the hype, the Binance team had to clarify information about the initiative. According to them, BFUSD is not a stablecoin. The coin is a profitable margin asset for futures trading. Binance representatives also promised to provide more information about BFUSD and the tools for calculating its profitability over time.
There is a theory that the launch of BFUSD may be part of Binance's investment in Ethena Labs. The fintech company develops innovative solutions in the field of decentralized finance (DeFi). The company's main product is the "synthetic dollar" USDe, which is a token linked to the US dollar exchange rate. Instead of the traditional provision of reserves, the USDe uses an automatic delta hedging strategy (a risk management method in derivatives trading) to maintain the stability of the dollar peg. According to the proponents of the theory, Binance can use USDe to pay the declared yield to BFUSD holders.
The reaction of the crypto community
The new BFUSD token has attracted attention due to its high annual yield, which is compared with the results of the collapsed TerraLUNA. At the moment, the profitability of the coin through the Anchor Protocol exceeded 20%. According to the participants of the crypto community, such high rates of potential profit look suspicious.
Investors have noticed that the Binance team is in no hurry to explain how the coin can give such a return. The opacity of the asset, according to netizens, may turn into a repeat of the story of the collapse of Terra for investors.
The news quickly became overgrown with memes. Their essence is that Binance's proposal looks like the reincarnation of LUNA's ideas, which eventually led to the collapse of the crypto project and major losses.