Lookonchain, the popular data analysis platform, has reported that Binance intends to collaborate with other stablecoin projects in response to the Securities and Exchange Commission’s (SEC) recent regulation on BUSD.
According to the thread, Binance has been highly active lately, with several notable developments. Between Feb 16 and 24, they created an astonishing 180 million TUSD. Soon after, on Feb 28, they declared that LQTY would be listed in the Innovation Zone. Most recently, they have revealed the introduction of the TRU perpetual contract.
TRU and LQTY prices surged over 200% in the last 30 days, a noteworthy development. Whales have consequently been actively assembling these tokens. For instance, between Feb 23 and Mar 3, address “0x4322” bought 23.5 million TRU ($2.94 million at the time) from Binance at an average price of $0.07344.
From Feb 15 to Feb 25, “0x7B23” bought 282,510 $LQTY with 274,996 $USDT at $0.97/each. The current value of the purchased LQTY is $701,130. The news of Binance’s intention to cooperate with various stablecoin initiatives has rises the curiosity of several other decentralized stablecoin projects that have yet to join the Binance network.
Some of the decentralized stablecoins that could become more attractive to traders due to SEC’s regulations include $DAI ($MKR), $FRAX ($FXS), $sUSD ($SNX), and $MIM ($SPELL). In addition, the community has expressed interest in will be watching the future autonomous stablecoins GHO (AaveAave) and crvUSD (CurveFinance).
However, Binance is strategizing for triumph in the dynamic realm of blockchain technology. Through partnerships with various stablecoin initiatives, they are forging a path towards a more interlinked and resilient ecosystem, teeming with boundless potential for expansion and profitability.
Binance BUSD Faces Significant Decline
Binance crisis: BUSD stablecoin market cap is down 45%, causing a significant impact on the company’s operations. As a result, many investors have lost faith in the exchange’s trustworthiness and are withdrawing their funds in large numbers.
Investors are now questioning the safety of their funds on the exchange due to the recent order from the New York regulator that has limited Paxos’s issuance of BUSD, causing panic. However, the peg with the U.S. Dollar is still secure, and users’ funds remain relatively protected.
Santiment, a data analytics company, tweeted that $BUSD had been classified as unregistered security by the SEC. As a result, there is widespread panic among the prominent investors holding the exchange’s stablecoin. This development has created an atmosphere of uncertainty regarding Binance’s future and reputation in the cryptocurrency community.
With the storm still brewing, numerous investors are questioning whether Binance can regain the trust of its users and restore its previously impeccable reputation.
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