Binance’s Collaborations With Stablecoin Projects Spark Interest Amidst SEC Regulations

Lookonchain, a well-known data analyst platform, posted a thread about Binance’s plans to collaborate with other stablecoin projects following the Securities and Exchange Commission’s (SEC) regulation of BUSD.

As per the thread, Binance has been busy with a flurry of recent activities. They minted a staggering 180M $\TUSD from February 16th to February 24th, which was shortly followed by an announcement of the listing of LQTY in the Innovation Zone on February 28th. And just today, they announced the launch of the TRU perpetual contract.

It is worth noting that both TRU and LQTY have seen an impressive increase in price, surging more than 200% in the last 30 days. As a result, whales have been actively accumulating these tokens, with address “0x4322” buying 23.5M TRU ($2.94M currently) from Binance at an average price of $0.07344 from February 23rd to March 3rd.

Similarly, address “0x7B23” bought 282,510 $LQTY ($701,130 currently) with 274,996 $USDT from February 15th to February 25th, at an average buying price of $0.97. Binance’s plan to collaborate with other stablecoin projects has sparked interest in several other decentralized stablecoins that are not yet in the Binance ecosystem.

Among them are $DAI ($MKR), $FRAX ($FXS), $sUSD ($SNX), and $MIM ($SPELL), which the SEC’s regulation could make more appealing to traders. Furthermore, the upcoming decentralized stablecoins GHO (AaveAave) and crvUSD (CurveFinance) have also piqued interest in the community and are worthy of attention.

However, it’s clear that Binance is positioning itself for success in the ever-changing landscape of blockchain technology. By collaborating with other stablecoin projects, they are paving the way for a more interconnected and robust ecosystem with limitless potential for growth and profitability.

Binance Token BUSD’s Market Cap drops 45%

Binance is facing a crisis as the market capitalization of its stablecoin, BUSD has dropped by 45%. This has resulted in a mass exodus of funds as investors lose confidence in the exchange’s credibility.

The New York regulator’s recent order has limited Paxos’s issuance of BUSD, leading to panic among investors now questioning the safety of their funds on the exchange. Despite this, the peg with the U.S. Dollar remains secure, and users’ funds are relatively protected.

In addition, Santiment, a leading data analytics firm, has recently tweeted that the SEC labeled $BUSD as an unregistered security, causing widespread panic among whale holders of the exchange’s native stablecoin. This has led to uncertainty surrounding Binance’s future and its reputation within the crypto community.

Source: Santiment

As the storm continues to brew, many investors are wondering if Binance can regain the trust of its users and restore its once-sterling reputation.

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