Crypto exchange Binance announced today that it will be discontinuing its own cryptocurrency BGBP, a stablecoin pegged to the British pound. Why? What happened?
Stablecoin BGBP missed targets?
Through a press release issued today, Binance revealed that it will be delisting several trading pairs on November 17 at 12pm (UTC), including the only trading pair for BGBP.
Other pairs to eliminate are AE / ETH, BLZ / BUSD, KMD / BUSD and NULS / ETH.
Basically the elimination of this trading pair implies that the crypto exchange will no longer offer its stablecoin pegged to the British pound.
Binance says goodbye
According to The Block, a Binance spokesperson said that BGBP was the crypto exchange’s “first experiment” with a stablecoin based on fiat currency.
Consequently, BGBP was a proof of concept. In itself, its removal does not mean that it did not work but that Binance acknowledged that “the issuance / exchange process was not the most user-friendly”.
“As such, in order to offer our users better services, we have discontinued BGBP and will direct users to our other available fiat access ramps that offer GBP,” the Binance spokesperson pointed out.
However, it is also true that BGBP may have generated little interest and consequently experienced a lack of demand. Especially if we compare it BUSD, Binance’s main stablecoin, which has a circulating supply of more than USD 662 million, BGBP only just over USD 900 thousand in British pounds.
Not only says goodbye to a stablecoin, but also to a platform
The BGBP delisting may also be linked to the Binance Jersey shutdown scheduled for November 30.
Why? Well, because this Binance branch was the main platform to buy BGBP.
It is worth remembering that Binance Jersey was launched in January 2019 and its aim was to offer a platform for users to trade euros and sterling.
At its launch, Wei Zhou, Binance’s CFO, assured that the platform was experiencing overwhelming demand for further diversification of stablecoins.
Almost two years later, it appears that BGBP was not the success that the crypto exchange projected.
Binance’s press release noted that “For users who still have BGBP after trading ceases, they will be able to use the Convert function to convert their BGBP to GBP in a 1: 1 ratio”.