On the 13th of February 2023, @DU09BTC shared on Twitter his thoughts on the BUSD situation.
The agenda against #Binance is pretty clear:
✅ Step 1: cut all their direct fiat banking & ramps
✅ Step 2: cut their back-up fiat banking via #BUSD
✅ Step 3: destroy their monopoly…
✅ Profit & revenge for Sam and his 196 friends in Congress
Any questions? pic.twitter.com/gPp7MHo9Ky
— Duo Nine âš¡ YCC (@DU09BTC) February 13, 2023
He believes the agenda against Binance and CZ is clear. First, they cut their access to fiat, then they cut their backup shadow banking, and finally, they would go after CZ’s centralized monopoly.
In line with that, Paxos announced that they have been ordered to stop minting stable coins for Binance. The aim is to end the supply for BUSD pending a potential lawsuit by the SEC against Paxos.
With intentions to comply, Paxos announced that all BUSD minting would be suspended following the instructions by the New York State Department of Financial Services.
BUSD is the third largest stablecoin after USDT and USDC, backed by the largest centralized exchange and pegged on the US dollar.
Paxos made it clear that BUSD remained fully collateralized with US dollar reserves, and that new holders would be able to redeem the coin until at least February 2024. Binance also stated that Binance would continue to support BUSD, but that it would move away from using it as its main stablecoin for trading.
In as much as there’s no official report as to why Paxos was instructed to stop minting BUSD, the wall street journal reported that the SEC is on the path to suing Paxos for violating investor laws and offering BUSD as an unregistered security to its users. Yet only Binance USD seems to be affected, other Paxos crypto products, such as Pax Dollar and Pax Gold are unaffected by the NYDFS order.
This has led crypto participants to believe that the plot is actually against Binance as retaliation for FTX and SBF.
According to information circulating, SBF while operating FTX, bribed 196 members of Congress. Thus in the wake of FTX’s crash, many pointed to CZ as a catalyst which has marked him as a target for SBF’s powerful friends.
Otters believe that Binance and CZ aren’t the only targets, but possibly the whole crypto space. The aim is to completely dry up the crypto space’s access to fiat, and the move against Paxos is just the preliminaries.
#BUSD gets rekt, #USDT prints billions.
This is called a zero sum game. One loses, another wins.
I did not expect USDT to be the most resilient stable.
However, on a second though, its obvious. They’ve been around since 2014.
They know their stuff. pic.twitter.com/pVGQVU7nCC
— Duo Nine âš¡ YCC (@DU09BTC) February 13, 2023
Yet a period of disability for one project is an opportunity for another. Tether has stepped up printing, issuing billions worth of USDT to cover up the void, about to be left by the absence of BUSD.
