MTR Token Price Could Skyrocket MTRG as Binance Looks to Adopt New Stablecoin
Binance Exchange, one of the largest cryptocurrency exchanges in the world, is reportedly considering replacing its Binance USD stable token (BUSD) with the Meter Stable token (MTR). The possibility of this move has caused excitement in the cryptocurrency community, and many are wondering what it could mean for the MTR token price. In this article, we will explore the possibility of Binance Exchange adopting MTR as its new stable token, as well as the features and benefits of MTR that make it a strong contender for this position.
Binance USD (BUSD)
The Paxos Lawsuit and the Need for a New Stable Token
Binance’s potential move to MTR comes on the heels of a lawsuit filed by the US Securities and Exchange Commission (SEC) against Paxos Trust Company, the issuer of the BUSD stable token. The lawsuit alleges that Paxos violated securities laws by failing to register the BUSD as a security. As a result, the SEC has ordered Paxos to stop minting any more BUSD stable tokens. This has left Binance in need of a new stable token to use on its exchange.
Binance will continue to support BUSD for the foreseeable future. We do foresee users migrating to other stablecoins over time. And we will make product adjustments accordingly. eg, move away from using BUSD as the main pair for trading, etc. – CZ (CEO of Binance)
What is MTR?
Meter Stable (MTR) is a fully-decentralized, permissionless, low-volatility cryptocurrency that is created using SHA256 Proof of Work, the same method used by Bitcoin. MTR is designed to maintain long-term purchasing power and stable value by using the cost of production and the PoW miners’ arbitraging behavior to establish a long-term equilibrium price for the market. This equilibrium price anchors MTR to the competitive global electricity price, which is more stable in value than any fiat currency based on historical data.
MTR is used for everyday payments and as a store of value. On the Meter network, MTR is used for transaction payments, gas, and storage fees, and PoS validators receive MTR as a reward for approving transactions. MTR can also be converted to MTRG through a competitive bidding process, similar to how miners use their hash power to directly compete for newly created Bitcoins in the Bitcoin network.
Benefits of MTR over Other Stablecoins
MTR solves many of the issues that existing stablecoins face. Unlike fiat-backed stablecoins like USDT and USDC, MTR is decentralized and not subject to regulatory restrictions. It is also not susceptible to capacity challenges like crypto-backed stablecoins such as DAI, which rely on oracles that are typically centralized and pose a systemic risk for the financial system. MTR’s true decentralization and permissionless nature also eliminate counter-party, regulatory, and oracle risks.
Maintaining Stability with MTR
MTR maintains stability through miners’ profit-chasing behavior, which ties the cost of global competitive electricity price to the value of MTR. This creates more stable purchasing power than any fiat currency in the world. When the price of MTR goes up, miners will allocate more of their mining equipment to mine MTR, and when the price decreases, they will point their mining equipment to other PoW chains. The miners’ actions cause the Meter block reward to elastically change in response, which brings the price of MTR back to its state of competitive equilibrium.
The MTR Token Price Potential
If Binance does indeed adopt MTR as its new stable token, we could see the MTR token price skyrocket the price of MTRG Governance token in the coming weeks. Binance is one of the largest cryptocurrency exchanges in the world, with a daily trading volume of over $5 billion. Its adoption of MTR would introduce the token to a massive user base and could potentially increase demand for MTR and MTRG. Additionally, MTR’s unique features and benefits could make it an attractive alternative to other stable tokens, further increasing the value of MTRG.
What Have They Been Saying on Twitter?
The possibility of Binance Exchange adopting MTR as its new stable token has generated excitement on Twitter, here’s what their saying:
When #Binance is looking for a non-fiat backed stablecoin.. then you realize you’re a visionaire#Meter is an ecosystem with an electricity pegged stablecoin🤝$MTR = Decentralized, permissionless and stable ⚡️$MTRG is inevitable 🔥
— Kameal⚡️ (@CryptoKameal) February 15, 2023
Stablecoin worries on your mind? Perhaps it’s worth researching alternative ideas.$MTRG Has an interesting idea utilising a ‘stablecoin’ Pegged to the value of electricity rather than USD.
This creates a permissionless, decentralised medium of exchange perfect for crypto pic.twitter.com/9MEZezWyFh
— Altcoin Gold (@Altcoin_Gold) February 15, 2023
We’ve been saying this since 2018, check out our metastable token pegged to electricity pricing: https://t.co/HSgvuKKAmV
— ⚡️Meter.io⚡️ (@Meter_IO) February 14, 2023
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