Important developments have come to the fore for Binance USD and BNB Coin (BNB), two popular altcoins known especially for those who use the largest cryptocurrency exchange, Binance. According to CryptoQuant data, while the amount of BNB and BUSD sent to exchanges increased, 145 million dollars of BUSD was burned. Here are the details…
BUSD inflows of $52 million to stock exchanges
According to data from CryptoQuant, $52 million worth of BUSD was sent to exchanges in a 24-hour period. According to CryptoQuant, an increase in the entry of any token to exchanges is mostly a bearish sign as it may precede traders selling the token. “Moving these coins to exchange wallets rather than storing them in cold storage shows the urge to convert coins into fiat or stablecoins,” CryptoQuant wrote in its data guide.
However, CryptoQuant added that these inflows could point to the use of stablecoins for collateral for futures or for rebalancing portfolios in general. According to a WSJ report on Sunday, as we reported on Cryptokoin.com, the U.S. Securities and Exchange Commission (SEC) claimed on Sunday that BUSD is an unregistered security. The news comes days after Paxos previously reported it was under investigation by the New York Department of Financial Services, but the scope of NYDFS’ investigation is unclear.
Paxos issues Pax Dollar (USDP) and Binance USD (BUSD) tokens; the second is a Binance-branded stablecoin. “BUSD is a fully owned and managed stablecoin by Paxos. As a result, the BUSD market cap will only decrease over time.” Meanwhile, the price of BNB, the native token of Binance, dropped. At the time of writing, BNB is changing hands at $292, down 6.9 percent in the last 24 hours. The change of BNB, which is the fourth largest coin with its market value, in the last 7 days is in the direction of 10.1% loss.
Altcoin burning started
Cryptocurrency exchange Binance has seen a surge in withdrawals over the past 24 hours as investors fear news of recent regulatory action against Paxos and its stablecoin Binance USD (BUSD). According to Peckshield, the BUSD token has seen significant redemption, with 145 million BUSD burned in the last 24 hours. On February 12, news came that the Securities and Exchange Commission (SEC) had notified him of possible sanctions against Paxos. It claimed that the stablecoin was an unregistered security, which Paxos denied.
Data compiled from blockchain intelligence platform Nansen shows that Binance has recorded a 24-hour multi-chain token net outflow of $788.5 million, with $2.7 billion outflow exceeding nearly $1.97 billion in. According to Dune Analytics data, this is the largest 24-hour net outflow since December 17, 2022, when the proof-of-reserve audit was retrieved from auditor Mazar’s website.
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