Binance Receives Failure To Maintain “Flawless” Its Stablecoin’s Reserves In The Past
According to Bloomberg, crypto exchange Binance acknowledged systemic issues that left its supply of Binance Smart Chain BUSD undercollateralized by at least one billion. However, the pegging process has since been improved, the spokesperson added.
The Binance-pegged BUSD token is intended to have a fixed $1 value supported by reserves of BUSD, a different stablecoin with the exchange name but issued and managed by a different business, Paxos Trust. The amount of BUSD locked as collateral to maintain its own coin, referred to as the “peg” by Binance, had previously frayed but is now unbroken.The process of maintaining the peg, according to a spokesman for Binance, includes numerous teams and hasn’t always been perfect.
