Former Binance CEO Changpeng Zhao warns users of potential scams linked to the USD1 stablecoin, emphasizing that it is not yet available for trade.
Changpeng Zhao’s Warning to Users
Changpeng Zhao, the former CEO of Binance, acknowledged the USD1 stablecoin in his X post on March 24. Hours later, he clarified that the stablecoin is not yet tradeable, urging users to be cautious to avoid scams. The official X page for WLFI quoted his tweet with a warning that USD1 is not tradable yet, and users need to be wary of scams. Before CZ's warning, it was revealed that the contract of the self-proclaimed 'World Liberty Financial USD' stablecoin was deployed on BSC.
Ethical Concerns and Complications of WLFI Stablecoin
Talk of creating a stablecoin by WLFI raised discussions last year, bringing up ethical concerns. The Trump-linked WLFI announced its plans to develop a stablecoin, which faced numerous hurdles before market introduction. Over recent months, the company has brought in key figures from the stablecoin sector, such as Rich Teo, signaling serious intentions.
Plans for Promoting USD1 in Market
It remains unclear how WLFI will address reserve transparency. However, with experienced figures like Rich Teo, it appears aware of potential challenges. While the new coin could bring substantial profits, introducing a new stablecoin into a crowded field is no easy feat, necessitating partnerships with major crypto exchanges.
Given current discussions, the launch of USD1 stablecoin could have a significant impact on the crypto market, drawing attention due to its connections with well-known business leaders and entities.
