According to Colin Wu, a prominent Chinese journalist and cryptocurrency expert, stablecoins backed by the popular altcoin Tron are no longer used in China. Wu claimed that people in China do not want to deal with stablecoins on the Tron Blockchain. Meanwhile, a statement on the subject came from Tron founder Justin Sun.
TRON token standard not accepted
Colin explains that over-the-counter (OTC) exchanges in China are increasingly refusing to serve customers specifically seeking USDT service using the TRC20 (Tron) standard. This was due to some doubts about the “purity” of the cryptocurrency. As we have also reported as Kriptokoin.com, USDT is a stablecoin issued by Tether. Native platforms require customers to exchange their assets for an ERC20 standard currency (Ethereum) and then contact them again to get the service.
It is also noteworthy that crypto lending firm Matrixport has completely stopped supporting TRC20-based USDT. However, no official statement has been made about this news so far. According to Colin Wu, many are concerned that the TRC20 standard does not meet the required anti-money laundering requirements of the American firm Chainanalysis. These “special requirements” are currently unknown.
Justin Sun, who founded the Tron Blockchain, initially did not comment on the information regarding traders’ refusal to work with cryptocurrencies on the TRC20. Contrary to these statements, Sun posted several posts on his Twitter account, where he talked about how good and efficient the collaboration between Tether and Tron, which created USDT, could be called.
Reply from altcoin founder
Although he did not make any statement on the subject at first, Sun came up with some of his statements today. First of all, he states that the issue of trust has become even more important with the development of the crypto money industry. That is why he states that “Tron and Tether are committed to developing and maintaining USDT-TRC20 as the safest and most useful coins in the industry.” Also, the constructor uses the following expressions:
One of the main things that distinguishes USDT-TRC20 from other stablecoins is its decentralization. With the TRON network, we can reduce the risk of possible attacks or breaches by preventing a single organization from controlling the flow of funds. This also enables faster, cheaper and more efficient transactions. Another important advantage of USDT-TRC20 is that it can handle high volume transactions.
In addition, Sun states that it has a transaction volume of 10 billion dollars and underlines that the network has not experienced any interruptions or delays in the last 1500 days. Still, he states that they do not trust their reputation and emphasizes that they are constantly working to improve their infrastructure and keep it up to date. It also states that they are committed to being a pioneer in the industry, from regular security audits to the latest technologies. Apart from that, the TRON founder states that they are constantly making efforts to gain and maintain the trust of the community. Finally, he emphasizes that USDT-TRC20 funds are safe.
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