• Dogecoin has overtaken Binance USD in global market cap, for the first time, with a 2.2% slip in value.
• The delisting of USD Coin (USDC) by Binance and mismanagement of Paxos-issued BUSD stablecoin has caused a 50% drop in its market cap.
• SEC officially forbade the stablecoin issuer Paxos from producing any more BUSD resulting in a shift of asset to other competing stablecoins like USDT and USDC.
Dogecoin Flips Binance USD Stablecoin
Dogecoin reclaims its spot in the TOP 10 by global market cap, surpassing the world’s leading crypto platform’s stablecoin – Binance USD (BUSD). Despite a 2.2% slip, DOGE made the most out of this unusual achievement.
BUSD Loses 50% of Its Market Cap
The popular open-source memecoin achieved this feat ten days after one of its Foundation members warned Doge holders about BUSD and advised them to switch to DeFi solutions. This is due to Circle informing the Securities and Exchange Commission (SEC) about Binance’s mismanagement which resulted in over $3 billion of assets moved away from it within 6 days. Furthermore, USDC had a similarly sized global market capitalization before SEC officially forbade Paxos from producing any more BUSD.
Mismanagement by CeFi Platform
BUSD served as the default cryptocurrency on Binance user interface for some time until it was delisted by their competitor Circle in September 2020. This resulted in quarterly losses and miscalculations as well as movement away from this asset class within 6 days due to increasing concerns around its stability.
Crypto History In The Making
This is an unprecedented event that has never happened before – a memecoin overthrowing a CeFi platform’s stable coin simply due to users being wary about it’s management resulting in fifty percent drop in its market capitalization since November 2022 when it had 22 billion dollars worth of assets under its control compared now at 11 billion dollars..
It can be concluded that despite not being issued by itself, Binance USD was indeed quite essential for the crypto titan’s ecosystem but with increased caution around these types of assets, others are quickly replacing them resulting into reshaping of entire landscape from investments point of view .