Binance stablecoin BUSD sees a sharp market cap drop amid solvency and mismanagement worries

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Investor concerns and new regulations have resulted in a decline in the market capitalization of Binance’s $BUSD stablecoin.

Stablecoins are so crucial to the future of crypto that Moody’s, a well-respected analytics agency, is planning to develop a scoring system, which may help reduce the speculation and fear that some investors have with stablecoins.

Such fear amid a lack of stablecoin transparency has led one of the top stablecoins, BUSD, to see a major usage decline in recent weeks.While the BUSD market cap witnessed a large bump on Sept. 30, 2022, those gains came from Binance’s decision to to its own stablecoin. Those gains have since evaporated. At the time, the automatic conversions took $3 billion off of USDC’s market cap.that first came to light in January 2023. While Binance pushed back on reports that the stablecoin was not fully backed, investor fears led to a major exodus.

According to blockchain analytics provider Nansen, the circulating supply of BUSD decreased to $15.4 billion on Jan. 25. The drop represents a decrease of $1 billion from the previous week and $2 billion compared with December 2022.The most recent decline sped up BUSD’s market cap decrease from $22 billion when

to withdraw money from Binance after it misrepresented the amount of digital assets in its collateral reserves by combining corporate holdings on reports.

 

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Good news for Coti and Cardano, Djed stablecoin rules next week😎

how much more needed to cause a meltdown? stay-tuned im thinkin

4️⃣

4

Give it a rest, cointelegraph... 🙄 Saying things like 'SWIFT to ban dollar transfers' when it's just their partner, Signature Bank, that doesn't want to deal with crypto, is too revealing.

busd still looks solid 🙀

They used it to fuel the current rally more at InspoCrypto

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