Binance’s stablecoin (BUSD) continues to suffer more setbacks following the ban on minting them as a mild slump in market capitalization recently adds to the list.
A plethora of ripple effects has been triggered since the security and exchange commission ordered a halt on issuing BUSD. Data from crypto market aggregator CoinGecko’s 7-day chart shows that before this order, the stable coin’s market cap stood above $16 trillion. The trading volume also stayed above the $9 trillion mark.
After the recent developments, BUSD’s market cap fell to about $15.7 trillion while volume surpassed $16.3 trillion. One of the major causes of this change would be a result of a slight de-pegging that occurred shortly before. The stablecoin traded for $0.995 against the US dollar, representing a 0.5% drop.
CZ Reassures Investors That FUD Is Temporary
Binance’s CEO, Changpeng Zhao, was actively dousing the palpable tension amongst investors on social media as he does in any tense situation. He tried to reinforce investors’ confidence by adding that the “FUD is temporary.”
Meanwhile, a glance at the overall investors’ sentiment from the comment section reveals that there may be more anger towards the regulators than fear.
Another thread the CEO put out on Twitter reveals Binance’s resolve to take proactive steps that would have the most negligible impact on investors. He stated that his team would explore other options as the situation evolved.
Do you see the BUSD surviving this attack? Let us know your thoughts in the comment section below.
