Binance removing support for BUSD

[ImThour]

https://twitter.com/binance/status/1697159019234791909


"As Paxos has halted minting of new BUSD, #Binance will now gradually remove support for the stablecoin on our platform."

So, Binance, which was trying to use BUSD for everything on their platform and make it much bigger than USDT, they are now removing support for the BUSD on their platform.
They literally used BUSD to pump their BNB and raise more BNBs with it. Kind of fishy overall.

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[Oshosondy]

This does not belong to bitcoin discussion, you can move it to exchange board.

Thank you for telling us this. I use Binance, but I prefer to use USDT as the main pair in spot market and for future trading that is not coin margin, and also I am not a fan of BUSD right from when it was created because I know that it is more centralized than USDT, USDC and Dai which are the three that I prefer. I also prefer USDP and TUSD but both including Dai are not main pairs like USDT and USDC.

Although for more decentralized stable coin, Dai is the one that I know.

I wish Binance to stop their manipulation, we can see it. Binance supposed to have USDC as the second main pair. Exchanges like OKX and Bybit have USDC as their second main pair after USDT. On Bybit, you can even use USDC to open long and short position in the derivative market.

Thank you for the information once again.

[NotATether]

Do we need all these different kinds of stablecoins anyway? Almost all stablecoin users uses centralized USDT anyway, and those that don't probably use DAI (the decentralized version) instead.

Most people creating other differnet stablecoins are just looking for cash grabs, though Tether is not without its own problems.

And how will they keep backing BUSD to USD 1:1, if they cannot run the BUSD money printer with the dollar?

[Synchronice]

The first comment really made my day, one user says: I trusted BUSD more than the US Dollars💛.

Overall, they have been trying really hard to promote BUSD on their platform. At some point they even had higher interest rate on BUSD compared to USDT. While the difference was slight, it still matters that it was there. I remember on Futures they had only USDT pars and added BUSD recently.
By the way, why don't they have USD pars like Coinbase? I don't understand why should I pair my coins with stablecoins during trading when there is a high chance that that stablecoin will go down to zero. I don't trust USDT, I don't trust BUSD!

[rat03gopoh]

Wait, there is a promotional paragraph in their ann. It looks like Binance has another stablecoin they support, FDUSD issued by a Hong Kong company^[1]. A good tactic to avoid SEC pursuit in the future.


1. https://academy.binance.com/en/articles/what-is-first-digital-usd-fdusd

[OmegaStarScream]

Well, this was inevitable. Since the whole SEC thing started, the token's marketcap has only been going down[1] but as mentioned above, it looks like Binance has already found their new favorite stablecoin:

In its statement, Binance said it is encouraging users to trade or convert their BUSD balances for First Digital USD (FDUSD) — a stablecoin launched in June by the Hong Kong-based trust company First Digital Group which had its debut listing on Binance in late July.

Pretty much all of its trading volume is coming from Binance[2]

[1] https://decrypt.co/121182/paxos-halts-busd-minting-as-sec-reportedly-prepares-lawsuit
[2] https://coinmarketcap.com/currencies/first-digital-usd/#Markets

[NotATether]

Wait, there is a promotional paragraph in their ann. It looks like Binance has another stablecoin they support, FDUSD issued by a Hong Kong company^[1]. A good tactic to avoid SEC pursuit in the future.


1. https://academy.binance.com/en/articles/what-is-first-digital-usd-fdusd

And would you look at that, they are trying to shill another USD coin to prop up their BNB:

Why Is FDUSD Useful?
Cryptocurrencies offer many advantages over fiat currencies as a form of payment and in other use cases, providing faster transactions and lower fees, in addition to being more secure and privacy-preserving.

Stablecoins like FDUSD are digital native instruments that are designed to maintain a stable value, helping to bridge the traditional financial ecosystem and the cryptocurrency market. Stablecoins like FDUSD allow fiat currencies to be represented in the crypto world while being able to move more freely and efficiently.

They literally ask "Why is FDUSD Useful"?

It's not useful you bricks, it was literally just listed. As I said in my previous post, there are many other stablecoins that will be used more than some random USD coin.

BTW am I the only one who disdains the idea of having a "USD coin" in the first place?

You literally have all these stablecoins, which are backed by the dollar, which itself is backed by.... a money printer. So inflation will tank all of these coins at once.

[yhiaali3]

Thanks for sharing the news, I knew this since yesterday as I was trying to transfer USDT from the exchange I am working on and I saw that the transfer on the BSC network (BEP20) was suspended, so I expected that there was a problem.

Anyway, since the previous BUSD problem, I think that the majority of users have stopped using BUSD, even for traders on Binance, so I think it is not a big problem.

It is unfortunate that a large exchange like Binance was not able to protect its stablecoin, this shows that there are basically suspicious and illegal things around BUSD from the beginning so it is better that they stop it before it causes huge losses to users.
In any case, I don't think anyone will be sad about another central currency leaving the market.

[EarnOnVictor]

Do we need all these different kinds of stablecoins anyway? Almost all stablecoin users uses centralized USDT anyway, and those that don't probably use DAI (the decentralized version) instead.

Most people creating other differnet stablecoins are just looking for cash grabs, though Tether is not without its own problems.

And how will they keep backing BUSD to USD 1:1, if they cannot run the BUSD money printer with the dollar?

I often wonder as well but the answer is not far-fetched still. As you know human beings, give them an idea or opportunity, they will always be selfish and be at the centre of everything if they have the power to do so. It's true that USDT is not without imperfection, but many of those stablecoins are a waste of time too, really crap.

As for Binance, CZ wanted to control everything crypto, thinking the grace and luck that played for him with Binance as an exchange could make it dominate everything crypto.

But business and people's minds are beyond that. You can't predict them.

[Apocollapse]

This is quite funny, although BUSD is created by Paxos and the reason of BUSD creation isn't from CZ's initiative, but everyone always think BUSD is owned by Binance. If the name of this stable coin isn't BUSD, there must be a sudden dump because many people will panic.

I think everyone should convert all of their BUSD into other popular stable coin right now.

[Nwada001]

I saw this post on our local board just yesterday, and then there was no official news either from Binance's official X handle or that of their stable coin issuer, Paxo; it was just some kind of speculation that most people got email warnings regarding, and about 3 news sites that I saw it on as of yesterday, which was making me wonder if it was true or not, but this has made it more clear to me now.

What was even the need for all exchange stable coins? Must every centralised exchange have their own stable coin that has their exchange initial attached to it? I know BUSD is an altcoin, but are they milking any kind of benefit from it as their customers are using it?
 

I wish Binance to stop their manipulation, we can see it. Binance supposed to have USDC as the second main pair. Exchanges like OKX and Bybit have USDC as their second main pair after USDT. On Bybit, you can even use USDC to open long and short position in the derivative market.

That's one thing about Binance: they love to promote themselves in any way that they can. When Busd was even recently launched, they even compared it with USDT by saying BUSD is backed up and audited every single month with other listed features, which they used to compare and make the Busd look better than USDT; they are both centralised and should be regarded that way. Their means of making BUSD more available on their exchange trading pairs are their means of promoting BUSD to the top in every way possible.

But my question is, if the BUSD was being approved and licenced by NYDFS during the time of the approval, was it not noticed that it did not meet the registration requirements for a security token?

[blockman]

When I saw this news, I had to check my account there if I was holding BUSD but no I wasn't. The minting will be stopped as said but whichever exchanges that are still supporting it will remain it. I thought that it was them that have made this stable coin but no.

This is quite funny, although BUSD is created by Paxos and the reason of BUSD creation isn't from CZ's initiative, but everyone always think BUSD is owned by Binance. If the name of this stable coin isn't BUSD, there must be a sudden dump because many people will panic.

I think everyone should convert all of their BUSD into other popular stable coin right now.

The same thoughts, it was named after their own exchange just like the other stable coins but then they have to stop supporting it. Quite ironic but that's what business means to them.

[noorman0]

-snip-
What was even the need for all exchange stable coins? Must every centralised exchange have their own stable coin that has their exchange initial attached to it? I know BUSD is an altcoin, but are they milking any kind of benefit from it as their customers are using it?

This type of stable coin is centralized, so the obvious benefit is being able to control users' money even without using their exchange. Additionally, exchanges will benefit from the visibility of the stablecoins issued which will likely bring in more users.

[Kavelj22]

It is unfortunate that a large exchange like Binance was not able to protect its stablecoin, this shows that there are basically suspicious and illegal things around BUSD from the beginning so it is better that they stop it before it causes huge losses to users.
In any case, I don't think anyone will be sad about another central currency leaving the market.

There is no difference between all of these currencies, and they all have in common the fact that they are linked to the dollar as a reserve currency, and that all of them can manipulate the amount of their liquidity by printing an infinite number of them without providing that cover of the dollar.

The main reason why Binance abandoned BUSD and looked for other options is that BUSD is minted by the American company Paxos, which is regulated by the Securities Exchange Commission (SEC) in accordance with US laws and is therefore monitored. This, of course, does not help Binance when it wants to print more without anyone’s supervision.

[Synchronice]

Well, this was inevitable. Since the whole SEC thing started, the token's marketcap has only been going down[1] but as mentioned above, it looks like Binance has already found their new favorite stablecoin:

In its statement, Binance said it is encouraging users to trade or convert their BUSD balances for First Digital USD (FDUSD) — a stablecoin launched in June by the Hong Kong-based trust company First Digital Group which had its debut listing on Binance in late July.

Pretty much all of its trading volume is coming from Binance[2]

[1] https://decrypt.co/121182/paxos-halts-busd-minting-as-sec-reportedly-prepares-lawsuit
[2] https://coinmarketcap.com/currencies/first-digital-usd/#Markets

It's okay for Paxos to print PayPal USD but it's a problem to print Binance USD. Sounds interesting, but I really wonder if Binance is going to add USDP pairs on its exchange.
This is definitely a war between Binance and SEC but the curious thing is that Binance always manages to escape, it always finds a new deal.

BTW am I the only one who disdains the idea of having a "USD coin" in the first place?

I personally don't understand why don't we have simply USD pairs and why do these exchanges offer stable scams?

You literally have all these stablecoins, which are backed by the dollar, which itself is backed by.... a money printer. So inflation will tank all of these coins at once.

Are these stablecoins actually backed by the dollar? That's the question. I'm afraid they aren't backed by the dollar and if today we all try to convert our USDTs into USD, there will be a chaos.

[tvplus006]

You literally have all these stablecoins, which are backed by the dollar, which itself is backed by.... a money printer. So inflation will tank all of these coins at once.

Are these stablecoins actually backed by the dollar? That's the question. I'm afraid they aren't backed by the dollar and if today we all try to convert our USDTs into USD, there will be a chaos.

Last year, one of the largest auditing companies in the world, BDO, published a report on the sufficiency of reserves of Tether Holdings to support USDT - https://assets.ctfassets.net/vyse88cgwfbl/2xJyKdUKicdRUWpC9buRWR/544a579335ae65ed0e08c162c5a2c5d9/Std_ISAE_3000R_Opinion_30-6-2022_RC134792022BD0303.pdf. According to this report, the assets of Tether Holdings consisted of:
US Treasury bills - $28.8 billion
in commercial securities - $8.5 billion
money market funds - $6.8 billion
cash - $5.4 billion

[Ultegra134]

Thank you for sharing; I had completely missed it. It is kind of surprising and something I wouldn't expect to happen. Even though BUSD has been created by Paxos and not Binance themselves directly, I believe that it'll impact Binance and especially BNB, as everyone affiliated BUSD with the exchange. Personally, it was one of my first, if not the first, options when choosing a pair to stake stablecoins or any other coin because, at least to me, it seemed like a safer option than TUSD or USDT, but I might be wrong about that.

Certainly, to begin with, there are already too many stablecoins in circulation, but it was a little different with BUSD due to its correlation with the Binance exchange; it just felt safer to me, as I found it unlikely for Binance to face any major difficulty that would disrupt its ecosystem. It seems that the SEC incident is starting to cost, while I also read a couple of days ago that Mastercard is stopping its affiliation with Binance for the issuance of new cards. I wouldn't be surprised if these incidents also affect BNB.

[mk4]

I honestly wouldn't be surprised if Binance is now in a pretty shitty situation in terms of regulations that I probably suggest against using Binance even if you were an active daytrader.

In the first place — it was pretty weird with Binance being in the gray-area in terms of legality, and them partnering with Paxos — a New York-based company.

[cheezcarls]

Before this news came out, I've already converted my BUSD to USDT.

Ever since I knew that the Paxos the one who supported the BUSD have been asked by the US regulators to stop their operations, the future would be uncertain for BUSD.

Now that this eventually came true as they are finally removing the support of BUSD, it would potentially affect Binance especially the BNB coin. But we will see regarding their upcoming developments over the next few months.

[tvplus006]

...Now that this eventually came true as they are finally removing the support of BUSD, it would potentially affect Binance especially the BNB coin. But we will see regarding their upcoming developments over the next few months.

And what connection can there be between BNB and stablecoin, the issuer of which was Paxos? A month ago, Binance switched to promoting another stablecoin - FDUSD, which took BUSD place in Launchpool Cyber and SEI. There can be no vacuum in business and FDUSD appeared instead of BUSD.