Binance’s CZ Says Crypto “Landscape Is Shifting” And Here’s Why!
Binance’s CZ Says Crypto “Landscape Is Shifting” And Here’s Why!
Stablecoin Change
Earlier today, Binance CEO Changpeng Zhao (CZ) went onto his Twitter to announce that the ‘landscape is shifting,’ following the major changes that are happening following the crackdown on stablecoin BUSD.
CZ tweeted out the details of changes in the valuations of the top three stablecoins, including BUSD, USDT and USDC since the SEC’s crackdown on BUSD earlier this week.
The Binance CEO explains that this past week, BUSD’s market cap dropped by $2.45 billion, causing it to sink from $16.1B to $13.7B. A 15% decrease, sinking to a 14-month low.
Most BUSD investors are said to have moved to USDT instead, causing USDT’s market cap to increase by $2.7 billion, a 3.5% increase, causing it to now have a market cap of $70.1B.
USDC on the other hand, has also been seeing its market cap sink, though not as bad as BUSD. According to CZ, this past week USDC has seen its market cap fall 1.7% to $41.5 billion.
Related: Binance Withdrawals Surge Following Paxus BUSD Scrutiny
BUSD market cap dropped -$2.45B (from 16.1B to 13.7B as of now), and most of it has moved to USDT.
USDT marketcap + 2.37B (From 67.8B to 70.1B)
USDC also declined -739M (from 42.3B to 41.5B)
Landscape is shifting.
(Note: BUSD is NOT issued by Binance.) pic.twitter.com/kVrZUYjuOh
— CZ 🔶 Binance (@cz_binance) February 17, 2023
Effect On Binance
Despite the crackdown on BUSD and its issuer Paxos this past week, Binance has publicly made it clear a number of times that investors shouldn’t worry about their funds in the Binance platform as Binance USD itself, despite its name, is a stablecoin that is “wholly owned and managed by Paxos” and not Binance.
CEO CZ has also made sure to issue this notice once again in his recent tweet, writing “Note: BUSD is NOT issued by Binance.”
Despite their attempts to reassure investors however, it’s reported that the number one crypto exchange saw a massive amount of withdrawals this past week following the unfolding of the SEC’s lawsuit against Paxos and BUSD.
It’s reported that Binance recorded $916 million in outflows in Ethereum-based (ETH) tokens on Feb. 13 — the exchange’s highest daily withdrawal since Nov. 24, 2022.
Related: Pro Gamer Wins #1 Spot In Yuga Labs’ Dookey Dash, His Prize Is Worth $3.7M!
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