OKX founder and CEO Star Xu questioned Binance's promotion of USDe as a stablecoin on the New Era Finance podcast. He pointed out that USDe, issued by Ethena, is essentially a "tokenized hedge fund," and its Delta-neutral strategy does not imply zero risk. Xu further stated that Binance allowing users to borrow USDT with USDe as collateral, then convert it into more USDe and repeat this cycle to increase returns, amplifies leverage and risk exposure. He claimed this was a major cause of cascading liquidations during the "1010" crash and represents a severe failure in risk control.