Bitcoin Forum

Recently we have seen a huge Dump in BNB price, as well as BUSD, is treated below $0.998. The BUSD price $0.998 seems not too low for many new traders but for the Whales and big investors its like, if they have $998000 USDT then they can get $1M BUSD, and later on they can sell it with an equal amount, so they do the trading but BUSD price dumped to $0.9959 which is a lot for the big investors.
The same happened for the BNB holders, as the BNB was traded at around $320 but recently down to $283 which is also a lot for the big whales.

All the Dump occur because of the SEC because they launch enforcement action against Paxos, the issuer of BUSD. Paxos says that it will vigorously defend itself, and the issue is going to court. But as per the CZ's recent tweet, "Ignore FUD, fake news, attacks, etc." it is clear that both BNB and BUSD will recover the price soon.

All the small investors and Newbies are advised to take extra care because if something bad happens then they won't be able to get their investment back and it will be the same case as LUNA and FTX as they were also considered Stablecoins like BUSD.

I think BUSD would eventually overcome the hate NYFD and USDC has thrown to it these days. As long as it is a store of value, then its all good

In addition to that, there's a big difference between the owners of BNB/BUSD project vs FTX/LUNA projects.
The owners of FTX/LUNA projects put some of their bankrolls to their own pockets and used for their own luxuries.
I have high regards with CZ that he is doing good in this business because he has actual plans for his platform.
Sure, he is earning good income from this business, but I don't think he will abandon his platform for the sake of his own luxuries.

For BNB and BUSD myself I'm not too worried considering these two tokens are backed by one of the biggest exchanges in the world and it's clear in their documents that their assets are in their control and the CEO of Binance already has a long term plan to manage how Binance and their tokens stay survive in the crypto market.

Anything can happen but Binance team assure the public that they have plans and a better strategy to overcome this pressure and this current issue, this is not the first time they attacked Binance and tries to ruin its reputation, the last one Binance was able to survive it.

Anyway, if you’re still panicking and want to be more safe then just convert your BNB to BTC, you can be more safe with this while waiting for the updates and the official statement of Binance with regards to this.

You still have a lot of lessons to learn, I guess.

Yes, It is the biggest crypto exchange until all of a sudden it isn't. Remember FTX being the second or third-largest crypto exchange? Where is it now?
Please stop blindly thinking nothing can happen to binance because it's the biggest.

CZ is already trying to distance himself and binance from BUSD and paxos.

I'm still looking at it and good thing that it's not that much on my portfolio. Whatever comes in this situation and if it will be worse then I'll quickly act on it to convert it to another asset that I have.

We get this all the time from these CEOs even if there's something that's really happening into their fence. But will still consider that as he's the one who has opened the idea about FTX however, it doesn't mean that he can't get f***ed with his things.

I feel like attack on bnb is not something important as its just another altcoin. Critical one is definitely attack on busd. Limiting it means CZ may need to replace all its trading tools. He may even need to replace busd totally and do 1:1 replace with issuing another binance backed stable coin. Things are surprisingly going bad. I think market reaction shows what can be the worst. Many people trust cz but regulations are very important.

If their reports were not cooked, they have good management for their own treasuries and customer fund.

In this fud and crisis, Binance got a lot of trust and positive support as well as responses from big entities. Venture capitals don't swap their BUSD to other stable coins that is a very good signal of their high trust on Binance and CZ.

Binance gained very high trust and reputation after the FTX fiasco and BUSD gained lot of interest in stablecoin branch. Hence other exchanges, other stablecoin teams want to attack Binance and BUSD that is understandable.

If in a few more days, Binance and BUSD are fine, BNB and the whole cryptocurrency market will recovery very strongly. I believe they will recover.

If you don't let fud affected you a lot, you will see globally, what are banks are able to proceed $3B withdrawals for customers in about 24 hours. Binance are actually better than many banks.

True. As I always say - expect the best, prepare for the worst. Anything can happen and no one nothing is 100% safe.

There is not such a thing as too big too fail, Lehman Brothers one of the largest investments banks and which existed for more than 170 years disappeared in a matter of weeks and it was the direct cause of the crisis we suffered during 2008.

I do not have the numbers but I would guess it was bigger than binance and it still disappeared, so thinking that just because binance is the biggest exchange on this market nothing can happen to it is a huge mistake.

I think BNB will be fine. but I don't know about BUSD. but I'm also pretty sure Paxos will handle it pretty well. because even after this FUD we can see BUSD not dropping too far. and this is different from last year's UST or Luna case. However, we must still be prepared for the worst. so for a while I also converted my BUSD to USDT. Being careful is much better than being sorry in the end.

The news are simply to sway in Big exchange Binance but would you think the number 1 centralized exchangw would badge on this? Especially CZ is one of the richest crypto people out there. Of course they will take action and their CEO simply defend the issue on social media.

I dont know whats the big fuss about it but only some might panic on this considering how huge Binance is. Its about the concern on Busd on paxos issuer, but deliberately all US related product on crypto might enter this kind of issue cause we all knew how strict US when it comes to regulation.

The BNB situation is too close to FTT for me to feel comfortable holding it. There’s just too much potential for it to go to zero. Granted Binance has been around much longer than FTX and has a much stronger financial position, but you can’t ignore that they’re playing the exact same game. At some point someone with deeper pockets will likely come around and do to Binance what Binance did to FTX.

How do you know that the BUSD price dumped of $0.9959 is a lot for big investors when the price is just like $1 if we do the calculation.

Some people believe the SEC case against Paxos is just to cause FUD in the market and I also believe CZ and the whole Binance team ought to be expecting this ever since their ecosystem keep expanding and also acquiring more project, especially those that are bankrupt.
I hope they will be more careful because some people who are not happy about the acquirement will be looking for the mistake they can use against them

To be fair, Lehman Brothers bankrupted itself, but others picked up what they had and continued. Even the building they worked in got sold, and their names and offices and business' that they had, all of that was sold to others and that money was used to pay off the people they had debts to, and that means only Lehman Brothers got screwed because of this.

They did it unto themselves, a big attack could always result with some companies bankrupting because they do not have enough income to pay off their debts, which means they weren't ready for a bad situation. I believe we do not have that right now, Binance is good, and they do not have to worry about this attack at all.

Things are pretty much clear after the CZ explanation to the community. Still, one point is existing and that is now what about the future minting of the BUSD. In my view, Binance has many alternatives, and Dubai or any other country might be ready to provide Lisance to Binance for the BUSD minting. One more theory may be Binance is going to Pedge the BNB and BUSD as an algorithmic stablecoin. As Luna and UST were pegged I am not sure about this theory but it can be considered. 

BUSD can also be pegged with any other Local currency such Yaun, Ryal or another currency it has low possibility but still its possible for now feel safe with the USDC

So far, this looks like a war between large companies for market influence, and the CEC acts as an executor of other people's interests. The market is growing, the number of projects is constantly increasing. And many do not like the leading position of the Binance crypto exchange in this market.

If BUSD will be tied to any other local currency, then it will be something else, but definitely not BUSD. And I am sure that investors will not trust the new stablecoin as well as they trusted BUSD, because no local currency can compare with USD.

You seem to have an error in the text.. You probably meant SEC, not a CEC?

How do you feel about the fact that binance is beginning to penetrate into so many directions in crypto areas?

The struggle in any markets is eternal. It is possible that it was not without reason that SEC began to actively put pressure on binance right now, whereas before that she seemed not to notice their activities.


It is now, not a single national currency can be compared with the dollar, but if the dollar collapses, then new options appear. At least the same yuan (not Yaun, like Hamza2424's post above). But this is unlikely to happen anytime soon. So, in the current realities, the peg to the dollar is the most stable and the peg of BUSD to any other currency is a bad signal. You're right.

The attack is not primarily on BNB, BUSD, it is an attack on cryptocurrency in general and stable coins in particular, but Binance was chosen because it is the most powerful platform and a blow to it could cause a major shock to the market, a state of fear and shaken confidence among users.

Recently there was news about USDC and before that a while ago there was an attack on USDT, I think it is a secret war led by the US in secret to eliminate Crypto.

it seems that's how it happened. But now FUD like this has become commonplace. even the market is now recovering quickly. even BUSD returns at 1:1 . now more people are ignoring Fud. and that is a good thing for the future growth of cryptocurrency users. let those who continue to make Fud tire themselves. actually the XRP vs Sec trial is almost at the end of the road and victory looks like it will be in Xrp's favor. so from there maybe Sec looked for another target and Paxos was the one who then became the next target. I don't understand a law. but I hope the future government can be more open with cryptocurrencies. so that there is mutual benefit.

Binance has had problems with regulatory authorities since 2018, which was related to the exchange's compliance with anti-money laundering laws. And since then, the exchange has been constantly under the gun of regulatory authorities. Obviously, Binance has decided to interrupt this series of investigations, voluntarily agreeing to pay all fines for past violations of the law. It is not yet known how much the past violations will be assessed, but it is obvious that the amount will be large.

True, but at the same time many interpret the actions of CZ against FTX as an attack against it and SBF, and since this was done when the exchange was facing so many problems this destroyed that exchange in a matter of days.

So Even if binance is doing well right now if at some point it does not then I am sure someone will try a similar attack against binance to try to destroy it, and they will not think twice about it as CZ has done the same already.

All these accusations and attacks will not make it any weaker, in fact it will show how strong it really is. The reality is that we are talking about something that is defending itself very well without any trouble so far, which means if they can't break it, then it has to be very strong. The same logic applied to many others, like how Luna was attacked and got crashed, which means that it was weak, BNB is not. I hope that this shall pass too, its not going to go on forever, Binance is too strong to let this crash them but at the same time people could get bored from this, so I hope it ends soon.

The way it works with these stablecoins is, if you manage to buy it at any price below $1. You can always claim the token and get $1 USD in return. There were many large firms which did that pretty much. They were trading in their USDT or USDC in exchange for BUSD and later they claimed it with Paxos and made a huge arbitrage gain.

Hence why they always repeg shortly afterwards. There is medium type of liquidity for stablecoins. So if 9 figures gets sold off in a short period of time, it will depeg for a short while. Because the large firms see this as an opportunity for arbitrage and they buy it and later claim these tokens for real USD.

Stablecoins FUD is already aged now. Before the USD Tether (USDT) is also like this, the attacks are unstoppable, with FUD everywhere. But look it now, USD Tether (USDT) is still here.
For me, the recent attack on Binance is their stablecoin's BUSD between Paxos. For me, all of these are just FUD, both parties already released their statements regarding with these.

And since CZ has confirmed via twitter to ignore FUD, fake news so at least the BUSD holders as well as BNB can be quite calm regarding the recent events, and I see it as just an attack on the existence of Binance which is quite heavily involved in the crypto world , but I agree that all those who own BUSD and BNB must be careful and actually this also applies to all altcoins because anything is possible

They've been through these kinds of accusations in the past and that's just how you gonna be when you are at the top because your competitors want you to stop rising up. Their services and features are the trends right now and with their backup features to recover lost funds of their users, they became one of the most trusted exchanges out there. With that being said, other exchanges wanted to compete against them and obviously, right now they are using a dirty way of competing against Binance.

BUSD is a kind of stable coin. Many are expecting that the value of a stable coin is only going to stay at 1 USD but even the dollar itself can't sustain it. It still fluctuates a little but it will always find it way back on 1 dollar again. I just want to say that it was normal and there is no need to panic about. Anyway, BUSD isn't the only stable coin that experience this little dip.

Tether was also reported last time to experience the same thing but I think many people will get alarmed since tether already have some issues before. BUSD was still a trusted stable coin because it was backed by Binance. As for BNB, it was also normal that it can dump like that because it's a volatile crypto and the bear market isn't over yet. Instead of worrying, why can we just use this moment to stock more coins?

I think it is expected of him to say something like that. I trusted him before he said anything, I have not sold any of my busd nor my bnb so far and wouldn't have sold any even if he said nothing. And if there is a person out there who was scared of all of this before CZ said anything, why would him saying his own company is doing fine would suddenly make them feel calmer?

What was the expectation, him saying that things are not alright and they are bankrupting? Of course not, you tell everyone everything is good no matter what the situation is, but I believe that this was just FUD and some people who dislike binance spread it.

The attack on Binance and its products has been going on for quite some time, since last year. The collapse of FTX triggered this sequence of events and it looks like it won't subside anytime soon. At the moment, Binance itself no longer wants to consider BUSD as the main stablecoin for their platform and they are looking at other stablecoins that are not backed by USD but another currency. In light of these events, I would definitely refrain from keeping BUSD in my wallet. This stablecoin is extremely unreliable right now.