Is Binance on the Verge of Collapse?
Binance, the behemoth of cryptocurrency exchanges, is facing an imminent demise.
The ominous signs are evident as the Paxos-issued stablecoin, BUSD, created by Binance, has suffered a 43% decline in market value. This is the first time since June 2021 that the value of BUSD has plummeted by over $10 billion, with customers redeeming approximately $7 billion worth of BUSD in exchange for other cryptocurrencies or fiat.
The once-revered king of the crypto realm now appears to be teetering on the brink of collapse. Adding to the insult, Coinbase, another leading player in the crypto market, has delisted BUSD due to grave liquidity concerns.
The situation begs the question: What exactly is going on in the world of Binance?
Binance is facing intense scrutiny from the U.S. Securities and Exchange Commission (SEC), who are eager to get their hands on the crypto giant. The demand for BUSD has declined rapidly since Paxos announced on February 13th that they would no longer create new BUSD tokens.
Paxos cited instructions from the New York Department of Financial Services (NYDFS) for this decision. The SEC also revealed it was preparing to take legal action against Paxos for selling securities without registering them.
This means that the SEC considers BUSD a…
