Binance USD (BUSD) tokens have been subject to a significant sell-off by major whales on the BNB Chain, as the cryptocurrency market experiences a seismic shift in the stablecoin arena. This sell-off trend is in line with the absence of new BUSD supply being introduced into circulation, resulting in investors fleeing the stablecoin as liquidity dwindles.
The market cap of BUSD took a hit following Paxos’ receipt of a Wells Notice from the U.S. Securities and Exchange Commission (SEC), leading to a sharp drop in the token’s circulating supply as redemptions soared. Regulators have compelled Paxos to halt the issuance of new tokens, while the demand for redemptions of BUSD has soared.
Support authors and subscribe to content
This is premium stuff. Subscribe to read the entire article.