Paxos-BUSD Dispute Triggers Large-Scale Withdrawals from Binance
Binance USD (BUSD) is the latest player to feel the heat of regulatory scrutiny, as the Securities and Exchange Commission (SEC) took aim at the stablecoin’s issuer, Paxos. They say that stability meets uncertainty and regulation is always around the corner. Andrew Thurman, a researcher from Nansen, said on Monday that various Paxos deposit addresses saw a “huge uptick in deposits, meaning there’s more redemptions and burns to come.” Thurman stated that a significant amount of BUSD burned on Monday, at a volume of more than $275 million. According to Thurman, this figure could rise into the billions by the end of the week. A little over $275 milly in $BUSD burned in the last 10 hours CryptoQuant, a provider of blockchain data and analytics, has reported a significant decline in Bitcoin (BTC) holdings on Binance. On-chain data revealed the transfer of approximately 3,500 BTC away from Binance following the Securities and Exchange Commission (SEC) issuing a Wells notice. PAXOS AND $BUSD FUD: BITCOINS OUT, BUSD IN The opposite has been happening with BUSD, with the stablecoin seeing an increase in presence on centralized exchanges (CEXes). Data from CryptoQuant shows that a substantial amount of BUSD, worth over $200 million, has been deposited on CEXes. Meanwhile, the Paxos treasury has decreased, as over 400 million BUSD coins were burned, causing the stablecoin’s market cap to drop to $15.8 billion, marking a decrease of approximately 2% over the past 24 hours. This shift in the supply of stablecoins potentially signals a period of change for the sector. The supply of other popular stablecoins, such as USDC and DAI, has decreased, while Tether’s supply has remained steady. Paxos has stated that their USDP has not been affected by the SEC’s advances and emphasized that BUSD is backed 1:1 with US dollar-denominated reserves held in separate accounts. The issuer further asserted that it would defend its position and engage with the SEC if necessary. Despite Paxos’ commitment to honor BUSD redemptions until February 2024, traders have rushed to redeem their tokens for dollars. Stablecoin outflows have also been observed from exchanges like Binance and Kraken, with more than $1 billion being withdrawn on Monday 13th alone. The recent developments surrounding Paxos and BUSD have captured the attention of the stablecoin industry. With the New York Department of Financial Services ordering Paxos to stop issuing BUSD, many are left wondering what the future holds for stablecoins and their place within the crypto market. To hear what Changpeng Zhao (CZ), CEO of Binance, has said about this: To get yourself up-to-date on the Paxos lawsuit, read here:
The crypto industry is closely monitoring a recent development in the stablecoin space as the SEC has taken legal action against the issuer of BUSD. The regulator has flagged plans to sue the issuer, Paxos, for allegedly violating securities laws. As a result of the SEC’s move, Paxos announced that it would halt the minting of BUSD. BUSD Supply Shrinks
Wouldn't surprise me at all if it gets into the billions by the end of the week
Binance needs to pivot to a new stablecoin -- as does much of the $BNB ecosystem -- and they need to do it soon pic.twitter.com/MxLo1oNRccBUSD Inflow on CEXes Rises as Paxos Disagrees with the SEC
"Bitcoin outflows from Binance (about 3.5k $BTC) and large deposits of $BUSD(+200M$) in all CEX"
by Vadym_Za
Linkhttps://t.co/6iJDdxfaAfStablecoin Stability?
On the Flipside
Why You Should Care
CZ Downplays Links to BUSD: But 90% of BUSD Is on Binance
SEC to Sue Paxos Over BUSD, Ordered to Stop Issuance
Read more: https://dailycoin.com/paxos-busd-dispute-triggers-large-scale-withdrawals-from-binance/
Text source: DailyCoin.com
