Friday, 12 April 2024

Crypto News

Why Circle USDC is quitting Tron, and what it means for $TRX and $GFOX prices

Why Circle USDC is quitting Tron, and what it means for $TRX and $GFOX prices

Over the past few years, Tron ($TRX) has been the most used blockchain network for stablecoin settlement. However, in a shocking move, Circle has announced its decision to end support for its USDC stablecoin on the Tron blockchain.

Since the decision, there have been no major effects on $TRX, which many investors continue to view as one of the best altcoins. MeanwhileGalaxy Fox ($GFOX) has emerged as one of the top altcoins to watch with its recent price surge. Read on to find out more about these emerging developments.

Circle stops support for Tron, what it means for $TRX

Circle, the Issuer of the $28 billion USDC stablecoin, the second-largest such token, has stopped offering support for its coin on the Tron blockchain. A risk management framework that “continually assesses the suitability of all blockchains” for the USDC was the reason for the move, as per a blog post.

While minting has already been stopped on the Tron network, Circle will phase out over $335 million on the Tron network. USDC holders can use any of the other 14 supported blockchains to transact, send, and receive the stablecoin.

Meanwhile, $TRX has established itself as one of the best altcoins over the past few years by being the world’s leading stablecoins network. $TRX is one of the top 10 crypto coins, with a market cap of over $12.2 billion. 

In the short term, there has been no visible impact from the Circle announcement. The price of Tron has mirrored the movement of the broader crypto market. However, as the funds of this magnitude are pulled out from the network, $TRX may experience some price drops. But more importantly, Circle’s withdrawal from the Tron ecosystem is a clear message that Tron and its founder Justin Sun are not on the friendly list of the US regulators that Circle is trying so hard to satisfy to become the de facto stablecoin of the US crypto market.

It’s also a sign of things to come, as US regulators are cleaning the house to pave the way for the inevitable future of blockchain and digital currencies. As Binance’s CZ found out, being on the wrong side of regulators and the DOJ is a dangerous proposition. It might be only a matter of time before they go after Sun, which could potentially do serious damage to the $TRX price down the line.

Galaxy Fox ($GFOX) shows resistance, price rally continues

Unlike Tron, Galaxy Fox…

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