Binance to burn $2B idle BUSD on Feb. 22 Binance to burn $2B idle BUSD on Feb. 22
The BUSD collateral on the Ethereum network will be released after the burn.
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Updated: Feb. 22, 2023 at 6:53 pm UTC
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Binance announced that it would burn $2 billion worth of idle Binance USD (BUSD) on BNB Chain “later today” on Feb. 22 at 12:07 UTC.
The same amount of BUSD held as a collateral on the Ethereum (ETH) chain will be released after the burn.
The BUSD marketcap recorded a 15% drop and saw its 14-month low at $13.7 billion on Feb. 17. Binance CEO Changpeng Zhao (CZ) noticed the drop and stated that the “landscape is shifting.”
He said:
“BUSD market cap dropped -$2.45B (from 16.1B to 13.7B as of now), and most of it has moved to USDT.
USDT marketcap + 2.37B (From 67.8B to 70.1B)
USDC also declined -739M (from 42.3B to 41.5B).”
This was four days after the Securities and Exchange Comission (SEC) issued a warning to BUSD issuer Paxos on Feb. 13 and asked them to stop further BUSD creation. Between Feb. 13 and Feb. 17, Binance’s BUSD holdings fell by 16% and dropped to around 12.1 billion tokens.
The burn still hasn’t commenced at the time of writing.
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Zeynep Geylan
Zeynep is an academic who turned to crypto in 2018. Originating in social sciences, she is especially interested in the social impact of blockchain and cryptocurrencies and strongly believes in their transmuting power.
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BUSD is a stablecoin issued by Paxos in partnership with Binance..
Ethereum
$3,159.12
Ethereum is a decentralized, open-source blockchain platform that enables the creation of smart contracts and decentralized applications (DApps).
Paxos
Paxos Trust Company, LLC is a regulated blockchain infrastructure company building transparent and transformative financial solutions.
Binance
Binance is a global cryptocurrency exchange that provides a platform for trading more than 100 cryptocurrencies.
Changpeng Zhao, popularly known as “CZ,” is a notable figure in the cryptocurrency world, primarily for founding and leading Binance, the world’s leading cryptocurrency exchange by trading volume.