Hello friends BUSD, the stable coin of binance will gradually cease to be used within the platform for all the services that the company has eventually, I think that it will also cease to exist since if binance is not even using it, imagine how useful it will be in other markets.
So what do you need to know why this decision is reached? |
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Remember that this currency was issued by a centralized financial technology company that was regulated by New York financial services and in the case of paxo, it already has many years in this industry, paxos issues some tokens such as pax Gold that follows the gold that is in the London vaults and it is a way in which you can speculate by integrating gold into your portfolio, it also issues different stablecoins and in this sense it was the company responsible for issuing BUSD using the binance brand and they were in charge of supporting all the busd holdings and making sure the parity was maintained one to one.
Let's remember that Paxos received a demand from the US regulators to stop issuing the BUSD coin. In that sense, Paxos was not going to fight against the regulators but rather agreed to the request and therefore they stopped minting the coin. currency, however, all the guarantees and endorsements were maintained so that clients could make the exchanges one by one and that this currency did not lose parity.
But of course, taking this as a starting point, we could all say that it is logical that if paxos the issuer was not going to continue with Busd, the most normal thing is that busd would constantly reduce its use over time and that it would eventually disappear if there was no company to take the place of paxos.
Is titled this way: Binance encourages users to convert busd to other stablecoins before February 2024
I think that any exchange that you make from busd within the platform within binance will be supported one by one. I have my doubts about what will happen with the tokenization that moves in other block chains such as polygon and even within the bnb Chain, for example, in pancake Swap in the usdt pool with busd, I wouldn't be surprised at all if there were to be some loss of parity, I'm not saying that it could happen, but as you know they are secondary markets and this is due to supply and demand. Depending on how it is in the pool, there may be some loss of parity, but you are not obliged to make the exchanges in these dex, you can take the busd into binance and make the appropriate conversion so that one to one parity is respected, so You would not have to worry even if the parity is lost as I say in the secondary markets.
| Source of the information: |
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Binance Encourages Users to Convert BUSD to Other Stablecoins Prior to February 2024
Binance pide a sus usuarios cambiar BUSD por otras criptomonedas
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Link Twitter:
https://twitter.com/joel_jai1/status/1697464456551297372
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Dear @joeljaimes1982 ,
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Let's see the effect of this warning to stop trading busd.
I hope things go better
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