Eminent cryptocurrency exchange Binance has recently disclosed plans to purge eight Binance USD (BUSD) trading pairs from its platform, hinting at the complete withdrawal of support for the stablecoin by 2024. This move foretells a shift in the norms of the crypto world, symbolizing an intriguing turn of events.
The step aims to suspend several Binance Margin isolated margin borrowing, including but not limited to AMB/BUSD, DASH/BUSD, and FIDA/BUSD among others, during early September. Notably, on the morning of September 7 (UTC), these chosen pairs are set to be removed from both Binance’s isolated margin market and cross margin market, thereby necessitating the users to transfer their assets to avoid potential losses.
The underlying reason for the removal of these eight BUSD pairs remains somewhat of a mystery, as Binance has been silent. However, rumors allude to it being a piece in a more massive ploy by Binance to cease all support for the stablecoin by 2024. It came into the limelight when Nu Brave, a widely recognized crypto influencer, conveyed that the exchange circulated a pop-up notification mirroring the same.
An earlier attempt to control the issuance of BUSD was made by the (DFS) when it directed Paxos, the crypto firm in question, to halt producing BUSD tokens, citing irreconcilable issues related to Paxos’ relationship with Binance. The culmination of this came when the SEC aired plans to file a lawsuit against Paxos over its issuance of BUSD, deemed an unregistered security.
Paxos’ decision to end its ties with Binance and halt any further BUSD issuance from February 21 extenuated the effect. Moreover, with the company continuing to support and redeem BUSD tokens till at least February 2024, the stability of BUSD came under a microscope, spiraling down more than 80% from $16.13 billion to $3.1 billion this year.
As BUSD experiences this drawback, its competitor Tether (USDT), the largest stablecoin in the market, witnesses a surge surpassing $83.2 billion. After shaking off the effects of the collapse of fellow stablecoin TerraUSD last year, USDT has managed to regain its lost market value, demonstrative of the dynamic and ever-evolving face of crypto markets.
Source: Cryptonews
