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

  • 📰 Cointelegraph
  • ⏱ Reading Time:
  • 52 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 24%
  • Publisher: 51%

United Kingdom News News

United Kingdom United Kingdom Latest News,United Kingdom United Kingdom Headlines

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.

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 562. in UK
 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

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

United Kingdom United Kingdom Latest News, United Kingdom United Kingdom Headlines