Started by PocketOption, Feb 15, 2023, 11:43 am
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Regulatory action against Paxos and Binance over their dollar-pegged stablecoin partnerships has spooked investors.
Following yesterday’s crackdown by the SEC and New York’s Department of Financial Services, Binance’s native token, BNB, fell more than 5.3% before recovering data today.
Traders have also massively withdrawn funds from crypto exchanges. Data aggregated by Nansen indicates that over the past 24 hours, a net of $356 million has fled the exchange amid recent regulatory scrutiny. This rate increases almost four times weekly.
BNB is an exchange token that allows holders to enjoy reduced trading fees and benefits for exchange users.
The exchange’s token is trading at $291.48 on CoingGecko, down from around $302 yesterday. BNB has had a rough week, falling 10.4% over the past seven days.
According to overnight liquidations, leveraged BNB traders exploded to $2.10 million.
BNB is still one of the five largest cryptocurrencies by market capitalization, with a total value of more than $45 billion.
Yesterday, Paxos and Decrypt confirmed that the SEC plans to sue the crypto companys for violating investor protection laws. The SEC also claims that the Binance USD stablecoin is an unregistered security.
Launched in 2019, the assets backing the Binance-branded stablecoin are held by Paxos and are primarily held in US Treasuries and currencies.
The suspension will take effect on February 21, but the company said BUSD will remain fully supported by Paxos and will be redeemable for onboard users until at least 2024.
Cryptocurrency prices were relatively mixed on Tuesday. BNB coin price continued to sell off amid regulatory concerns after Paxos stopped mining BUSD. MATIC, SHIB, and SAND fell by 3.3% in the last 24 hours.
A closer look at the day’s top coins shows that most are in the decentralized finance field. Hashflow’s price has increased by 26.8% in the last 24 hours.
Hashflow is an upcoming DEX that allows users to trade assets on multiple blockchains such as Optimism, Polygon, Ethereum, and Avalanche.
Meanwhile, GMX’s price rose 13.3% over the same period. GMX is a DEX that is relatively different from Hashflow. It allows users to trade perpetual futures contracts and other assets.
Another top DEX that is doing well is CRV, a native token of the Curve DAO ecosystem. CRV price increased by 12% due to the increasing trend of inflows into the ecosystem. In addition, other DeFi tokens, AAVE, Maker’s MKR, and Lido DAO, rose by 5.5%.
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