Binance Coinbase Rivalry Heats Up Over USD1 Smear Campaign
Binance Coinbase rivalry has escalated after Binance CEO Changpeng Zhao (CZ) accused Coinbase of orchestrating a smear campaign tied to the USD1 stablecoin from former President Trump’s World Liberty Financial project. The allegations follow a Bloomberg report claiming Binance developed the USD1 smart contract and holds over 90% of the tokens in its own wallets, generating interest revenue. CZ dismissed the report as a competitor-sponsored hit piece and threatened defamation proceedings. Influencer Matt Wallace says evidence is emerging against Coinbase, suggesting the exchange fears losing US market share if Binance returns legally—especially if CZ secures a presidential pardon. This Binance Coinbase rivalry underscores how competitive dynamics can spill into media and regulatory arenas. Neither exchange has issued formal statements. Traders should monitor shifts in exchange positioning, regulatory strategies and possible legal fallout that could affect USD1 liquidity and market volatility.
Neutral
While the Binance Coinbase rivalry intensifies with accusations of a smear campaign over the USD1 stablecoin, stablecoin pricing remains unaffected, suggesting a neutral market impact. In the short term, heightened media scrutiny and potential legal disputes could spur volatility around USD1 liquidity and exchange flows. However, stablecoins are designed to maintain their peg, and neither Binance nor Coinbase has taken formal regulatory actions to disrupt USD1’s stability. Over the longer term, outcomes of any legal proceedings and Binance’s US re-entry strategy may influence exchange market share, but the USD1 market itself is expected to remain resilient, keeping price impact neutral.