According to CoinMeta, the founder of OKX and also CEO Star Xu questioned Binance's promotion of USDE as a stablecoin within New Era Finance Podcast. He argued that USDE issued by Ethena is essentially a “tokenized hedge fund,” and even though it adopts a Delta neutral strategy, this does not mean zero or low risk. He further pointed out that Binance allows users to borrow USDT using USDE as collateral, then exchange it for USDE, repeating this cycle to amplify profits, which also simultaneously increases leverage and risk exposure. In his view, this arrangement is an important cause of the “1011” series of liquidations and constitutes a serious risk control mistake.