The head of Binance named the consequences of the termination of the issue of the BUSD stablecoin

The head of Binance named the consequences of the termination of the issue of the BUSD stablecoin

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Author: Robert Strickland
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The head of Binance named the consequences of the termination of the issue of the BUSD stablecoin
The exchange token rates reacted to the news of the termination of the issue of the Binance USD token, users began to withdraw funds from the exchange

The head of Binance Changpeng Zhao called the consequences of the termination of the issue of the BUSD stickycoin due to the ban by the authorities. On his Twitter page (the network is blocked in Russia), the businessman acknowledged that the capitalization of the asset will decrease and investors will start to move to other stablecoins. The statement by the CEO of the cryptocurrency exchange followed the news that the coin was discontinued.

Paxos, the issuer of the BUSD token, notified Binance that the New York State Department of Financial Services (NYDFS) has ordered that it stop issuing new Binance USD tokens. The asset currently has a market capitalization of more than $1.6 billion and is the third-largest among stablecoins, behind only Tether (USDT) and USD Coin (USDC).

Changpeng Zhao acknowledged that the asset's capitalization will now only fall, and the exchange anticipates that users will switch to other stablecoins. Therefore, Binance - though it will continue to support BUSD for the foreseeable future - will be adjusting its product lineup, such as possibly abandoning the token as the main asset in trading pairs on the site.

At the same time, Paxos issued a press release in which it confirmed that it is discontinuing its work with Binance regarding BUSD, and the issuance of Stablecoin will be discontinued as of February 21 this year. The company will continue to support the tokens already issued until at least February 2024.

The BUSD exchange rate reacted by going down to $0.992. According to CoinGecko, the daily decline in the value of the token is 0.5% and as of 1:50 pm, it is trading at $0.996. BNB has lost 6.2% in the last 24 hours, its price is hovering at $289.

Representatives of crypto project 0xScope reported that more than $500 million in various cryptocurrencies were withdrawn from Binance within an hour after reports of problems with BUSD. About $439 million of them came from Ethereum network and more than $102 million from Binance Smart Chain (BSC).

 

 

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