Dogecoin Foundation board member urged to avoid long-term investments in stabelcoinIn a series of tweets, Mishaboar pointed out that while Binance CEO Changpeng Zhao tries to downplay BUSD's role in the exchange's ecosystem, it is in fact the official stabelcoin of one of the world's leading centralized funding cryptocurrency platforms (CeFi).
According to him, the BUSD and Binance brands are inseparable in the minds of the average member of the cryptocurrency community. However, Binance has aggressively promoted BUSD on its platform since its launch, despite the fact that the stablecoin was actually issued by Paxos. Last year, the exchange delisted several staplecoins, including the asset of its direct competitor Circle - USD Coin, removed them from the exchange and automatically converted user balances into BUSD.
Mishaboar believes that SEC intervention was expected because the regulator could not ignore Binance's aggressive policy, especially after receiving a complaint from Circle about Binance's insufficient reserves to support the pegging of the BUSD stickycoin to the dollar.
Mishaboar concluded by urging the community to be cautious and avoid long-term investments in stablecoin because of the additional risks they pose, including liquidation of the issuing company and changes in regulatory rules. In addition, Mishaboar advised all investors to remember the catchphrase, "not your keys, not your assets," and to avoid accumulating excess funds on centralized exchanges.
As it became known, amid NYDFS demands to Paxos to stop issuing BUSD, assets worth about $1 billion were withdrawn from the exchange. Over the past 24 hours, the capitalization of BUSD has dropped by $400 million, the largest decline since November 24, 2022.
