Cryptocurrency stock market Binance’s stablecoin of BUSD market cap, which was at an all-time high on November 15, 2022. from $23.49 billion since about 14 billion dollars fell.
Binance USD Market Cap Drops Below $10 Billion Due To Rising Regulatory Concerns
BUSD Its market cap fell below $10 billion for the first time in almost two years due to regulatory pressure from the United States on the token issuer and a planned delisting from a major crypto exchange.
As of today, the stablecoin’s market cap has dropped to $9.66 billion. Levels not seen since June 29, 2021.
Most recently, BUSD was the subject of a potential lawsuit against Paxos for a possible violation of investor protection laws by the United States Securities Exchange Commission (SEC) on February 12.
Since then, the SEC has reduced $6.65 billion from the market value of BUSD.
Paxos was also ordered by the New York Financial Services District (NYDFS) to cease printing and issuing BUSD on February 12, which likely contributed to the stablecoin’s fall in market value.
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A Coinbase spokesperson said earlier this week that cryptocurrency exchange Coinbase will delist BUSD on March 13 because the stablecoin “no longer meets our listing standards.”
Binance’s stablecoin has skyrocketed since its launch in September 2019, making it the third largest stablecoin after Tether (USDT) and USD Coin (USDC).
Stablecoin currently ranks 10th in terms of market capitalization among all cryptocurrencies.
To meet the drop in demand for BUSD, Binance recently minted nearly $50 million worth of TrueUSD (TUSD), and the cryptocurrency exchange is seeking to diversify its stablecoin holdings.
On the other hand, it is an important issue that a stablecoin such as BUSD is sanctioned in this way, but that no one loses their money in BUSD. Because after such an event, it was extremely likely that BUSD would collapse seriously and investors would lose their money, as in the LUNA incident.
However, bypassing this problem without loss is actually extremely beneficial for the market.
*Not investment advice.
Source: Bitcoinsistemi.com