Paxos Burns Over $700 Million BUSD After 27 Hours Amid Legal Pressure
Key Points: Since Monday, Paxos, a stablecoin issuer, has spent more than $700,000,000 in BUSD tokens.
Paxos announced it would cease issuing cryptocurrency amid increased regulatory pressure. The NYDFS has placed sanctions on the company.
BUSD supply has dropped by more than 6 percent. Investors are seeking a way out amid regulatory pressure.
Paxos, which created the $16 billion BinanceUSD (BUSD) stablecoin, has burned more than $700,000,000 worth of BUSD tokens since Monday. Paxos, the company that created the $16 billion Binance USD (BUSD) stablecoin, has indicated that it will stop issuing the currency. The New York Department of Financial Services is the primary financial regulatory body in the state. On Monday 13:47 UTC, Paxos Treasury sent the first transaction of $144.5million worth of BUSD, according to data from Etherscan. This was less than two hours after the announcement. Source: Nansen dataThe move is an indication that investors are exiting the BUSD quickly. The $700 million redemption occurred in less than a day and represents 6% of all coins in circulation. Changpeng Zhao is the chief executive of Binance. It is the largest crypto exchange in terms of trading volume. He tweeted Monday that the BUSD market capitalization would only decrease over time. Binance also stated that even if Paxos decides to delist or announces the market share of BUSD, they will continue to support BUSD through their platform. Binance stated that in order to “ensure our customers are insulated from any excess harm,” evaluations would be necessary of other initiatives in certain regions due to continuing regulatory uncertainty in particular regions. We encourage you to do your research before investing.Join us to keep track of news: https://linktr.ee/coincuWebsite: coincu.comFoxyCoincu NewsTags: # Cryptocurrencies#MarketsBinanceBlockchainBUSDcryptopaxos burnStablecoin