BUSD

Binance Dollar (BUSD) tokens have been heavily discounted by large whales on the BNB Chain, as the cryptocurrency market undergoes a seismic change in the stablecoin arena. This sell-off tendency is consistent with the lack of new BUSD supply entering the market, causing investors to abandon the stablecoin as liquidity dwindles.Following Paxos&#39; receipt of a Wells Notice from the US Securities and Exchange Commission (SEC), the market cap of BUSD fell, resulting in a dramatic decline in the token&#39;s circulating supply as redemptions skyrocketed. Authorities have forced Paxos to cease the issuance of new tokens, while demand for BUSD redemptions has skyrocketed.According to statistics gathered from the WhaleStats whale tracking tool, the top 100 BNB whales have continued to liquidate their BUSD holdings, offloading nearly 2 million BUSD on average over the last seven days.Because the liquidity of BUSD has decreased due to the lack of new tokens, investors have begun to abandon the stablecoin. Furthermore, the use of the BUSD smart contract by these significant investors has decreased, with sources indicating that smart contract utilization has dropped by more than 83% in the last 24 hours.The stablecoin situation was compounded earlier this month when it was revealed that USDC and DAI have lost their pegs to the US dollar due to the former&#39;s holdings at Silicon Valley Bank. DAI is backed in part by USDC and other digital currencies.When US regulators announced measures to protect all depositors at Silicon Valley Bank and Signature Bank following their recent closures, the peg is practically restored.As Silicon Valley Bank was shuttered last week and placed under the management of the Federal Deposit Insurance Corporation, regulators in the United States guaranteed that depositors were fully protected (FDIC).A &#34;desperate&#34; cryptocurrency investor paid more than $2 million in an on-chain trade to exit an investment offering exposure to $USDC and the decentralized stablecoin $DAI and into $USDT, but only received $0.05 in return.

BNB Whales Dump Millions of BUSD Amid Stablecoin Market Shake Up

ItsBitcoinWorld

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