{"id":32477,"date":"2024-11-19T14:00:00","date_gmt":"2024-11-19T11:00:00","guid":{"rendered":"https:\/\/coinengineer.net\/blog\/?p=32477"},"modified":"2024-11-19T12:06:35","modified_gmt":"2024-11-19T09:06:35","slug":"binance-clarifies-bfusd-isnt-a-stablecoin","status":"publish","type":"post","link":"https:\/\/coinengineer.net\/blog\/binance-clarifies-bfusd-isnt-a-stablecoin\/","title":{"rendered":"Binance Clarifies BFUSD Isn\u2019t a Stablecoin"},"content":{"rendered":"<p>After <strong>Binance<\/strong> announced its new <strong>BFUSD<\/strong> token, promising an annual yield of 19.55%, the news quickly spread on social media. This sparked comparisons to <strong>Terra<\/strong>&#8216;s collapse, with its algorithmic stablecoin <strong>USTC<\/strong> facing a similar fate. In response, <strong>Binance<\/strong> clarified that <strong>BFUSD<\/strong> is not a stablecoin and has not yet been launched.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2024-11\/019342e2-512d-7eaf-b18e-6fd12f73d85b\" alt=\"binance\" width=\"742\" height=\"306\" \/><\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_71 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/coinengineer.net\/blog\/binance-clarifies-bfusd-isnt-a-stablecoin\/#How_Will_BFUSD_Work\" title=\"How Will BFUSD Work?\">How Will BFUSD Work?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/coinengineer.net\/blog\/binance-clarifies-bfusd-isnt-a-stablecoin\/#Why_Binance_is_Confident_in_BFUSD\" title=\"Why Binance is Confident in BFUSD\">Why Binance is Confident in BFUSD<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"How_Will_BFUSD_Work\"><\/span>How Will BFUSD Work?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><strong>BFUSD<\/strong> will be held in <strong>UM wallets<\/strong>, with users receiving daily airdrops without needing to lock up their funds. The amount of <strong>BFUSD<\/strong> users can earn will depend on their <strong>VIP level<\/strong> on <strong>Binance<\/strong>. According to the official launch page, <strong>BFUSD<\/strong> will be used as collateral for <strong>futures trading<\/strong>.<\/p>\n<p>The promise of high yields led some users to express doubts, drawing parallels with the failed <strong>Anchor protocol<\/strong> from <strong>Terra<\/strong>, which also promised high returns. In May 2022, <strong>UST<\/strong> lost its dollar peg, causing the entire <strong>Terra<\/strong> ecosystem to collapse, resulting in billions in losses.<\/p>\n<hr \/>\n<p><em>Might interest you: <a href=\"https:\/\/coinengineer.net\/blog\/who-could-replace-gary-gensler-as-sec-chairman\/\"><strong>Who Could Replace Gary Gensler as SEC Chairman?<\/strong><\/a><\/em><\/p>\n<hr \/>\n<p>One user asked, &#8220;Are we repeating the same mistakes?&#8221; while another questioned the sustainability of the yields: &#8220;Are we the ones providing the yield?&#8221;<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Why_Binance_is_Confident_in_BFUSD\"><\/span>Why Binance is Confident in BFUSD<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><strong>Binance<\/strong> defends <strong>BFUSD<\/strong>, stating that it complies with existing regulations and allows users to earn rewards without locking their assets. However, given past failures in the crypto world, promises of high returns are often met with skepticism.<\/p>\n<hr \/>\n<p><em>You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don\u2019t forget to follow us on our\u00a0<a href=\"https:\/\/t.me\/coinengineernews\" target=\"_blank\" rel=\"nofollow noopener\"><strong>Telegram,\u00a0<\/strong><\/a><a href=\"https:\/\/www.youtube.com\/@CoinEngineer\" target=\"_blank\" rel=\"nofollow noopener\"><strong>YouTube<\/strong><\/a>,\u00a0and\u00a0<a href=\"https:\/\/twitter.com\/coinengineers\" target=\"_blank\" rel=\"nofollow noopener\"><strong>Twitter<\/strong><\/a>\u00a0channels for the latest\u00a0<a title=\"News\" href=\"https:\/\/coinengineer.net\/blog\/news\/\" data-internallinksmanager029f6b8e52c=\"7\">news<\/a>\u00a0and updates.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>After Binance announced its new BFUSD token, promising an annual yield of 19.55%, the news quickly spread on social media. This sparked comparisons to Terra&#8216;s collapse, with its algorithmic stablecoin USTC facing a similar fate. In response, Binance clarified that BFUSD is not a stablecoin and has not yet been launched. How Will BFUSD Work?<\/p>\n","protected":false},"author":28,"featured_media":29358,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9,657,11,2],"tags":[9568,22,1561,4672,9569,1606,3069,488,1380,1417],"class_list":["post-32477","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-crypto-news","category-en","category-exchange-news","category-news","tag-bfusd","tag-binance","tag-crypto-exchange","tag-crypto-regulations","tag-crypto-yields","tag-futures-trading","tag-margin-trading","tag-stablecoin","tag-terra","tag-ustc"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Binance Clarifies BFUSD Isn\u2019t a Stablecoin - Coin Engineer<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/coinengineer.net\/blog\/binance-clarifies-bfusd-isnt-a-stablecoin\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Binance Clarifies BFUSD Isn\u2019t a Stablecoin - Coin Engineer\" \/>\n<meta property=\"og:description\" content=\"After Binance announced its new BFUSD token, promising an annual yield of 19.55%, the news quickly spread on social media. 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