It is certainly tough at the top especially when you are the number 1 in the game, Binance can tell you more as we have been seeing a lot of FUD news regarding Binance. The latest on its stable coin coin BUSD which is being issued by PAXOS. Lately there has been hints of the SEC coming after crypto companies perceived to be involved in asset securities such as staking. First we saw kraken shut down staking on its platform and now SEC has told pacts to stop printing BUSD as BUSD is assumed to be a security. This is the same fight ripple lab, the company behind XRP has been fighting since 2020.
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PAXOS is blockchain company that mints and issues BUSD which is then backed by real dollar, making each BUSD 1:1 to a dollar, I think Binance is the branding, I guess. I need to make more research to understand how this works. Because all this while, I thought the Binance company had been the one minting BUSD. So for now there won’t be more minting of BUSD, which will affect the market cap of BUSD, because the supply will reduce. Its not an algorithmically backed stable coin its a dollar backed stable coin. PAXOS being sued for BUSD being a security and being un regulated means that they will have to go to court and prove if its a security or not, and if it is ruled as a security, this will affect the crypto industry a bit because most coins are traded against BUSD.
Hearing this news, I converted all my BUSD to USDT ASAP, and sold my BNB, because this will affect the BINANCE company a lot. And I wasn’t wrong as BUSD depegged and BNB went from $319 to $289, glad I pulled out really fast, no pun intended. Lots of people were expected to do same because, its a moment of FUD, and lately I have been having the feeling to stop being attached to my BNB. Binance is under a lot of scrutiny and this will hinder their growth, so I can buy BNB back when I have enough free money or wait for the controversies to die down.
Now back to HBD, its an algorithmically backed stablecoin, issued and minted by the decentralised Hive blokchcin with its value and minting dependent on Hive, which is a decentralised blockchain and probably free from SEC. If SEC was to sue Hive, who would they come for? The community? Because there is no CEO. Another reason I am invested in HBD.
