Running Away From Stablecoin: BUSD

Published on:

There was an outflow of about 6 billion dollars from BUSD; Robinhood’s Web3 wallet is now on the App Store; 412 Bitcoin ATMs was disabled in the last two months.

There was an outflow of about 6 billion dollars from BUSD.

According to data provided by CoinGecko, Binance’s stablecoin BUSD has seen a $6 billion outflow following pressure from regulators.

Paxos Trust Company, the company behind BUSD, was forced to stop printing BUSD at the directive of the New York regulator. Subsequently, the US Securities and Exchange Commission (SEC) announced that it was considering taking action against Paxos, declaring that BUSD is an unregistered security.

After the events, Binance CEO Changpeng Zhao stated that this decision by the regulator will decrease the value of BUSD over time, so it may be right for investors to turn to a new stablecoin. In addition, CZ stated that he contacted Paxos and received assurances from the company that BUSD is backed 1:1 by cash dollar reserves.

According to data from CoinGecko, the total market cap of Binance USD decreased from $16.1 billion on February 13 to approximately $10.5 billion.

The Financial Times reported that more than $6 billion was withdrawn from BUSD last month, based on data from blockchain analytics firm Nansen.

According to analysts, the regulators’ moves regarding BUSD have disrupted Binance’s plans for the stablecoin market.

SEC Chairman Gary Gensler has previously stated that he views some stablecoins as securities.

Robinhood’s Web3 wallet is now on the App Store

Trading platform Robinhood has released its Web3 wallet on the App Store. With this breakthrough, Robinhood has delivered its wallet service to IOS users in 130 different countries in total.

Read more:  Unlocking the Secrets of Cryptocurrency Wallets, Private Keys, and Public Addresses

Announcing the other day, Robinhood said that users will no longer have to be on the list to access their multi-chain and individual custodian wallets. Robinhood also promised to support the wallet feature on Android by the end of 2023.

Robinhood released its first Beta version last September. Since then, the trading platform has added Ethreum (ETH) and more than 50 ERC tokens that can be bought, sold and held through wallets.

Supported tokens include USDC, UNI, MATIC and SHIB.

In addition, these tokens can be bought and sold without being subject to any fee. In addition, users will be able to use these cryptocurrencies to interact with decentralized applications (Dapp).

Since its beta launch, Robinhood Wallet has also added NFT tokens to allow users to collect and store their favorite collections on Ethereum and Polygon.

Robinhood stated that NFTs will not be subject to Apple’s 30 percent commission on apps and in-app purchases of digital products and services.

412 Bitcoin ATMs was disabled in the last two months

Crypto ATMs, one of the key infrastructure elements for mass adoption of cryptocurrencies, have seen a drastic decline this year. In the first two months of 2023, there is a decrease of 412 machines in cryptocurrency ATMs installed globally.

Is the demand for crypto ATMs declining?

Since 2014, the total number of crypto ATMs continues to grow steadily, serving millions of users worldwide for seamless crypto-fiat transactions. For a year from December 2020 to January 2022, more than 1000 crypto and Bitcoin (BTC) ATMs were installed every month. But the bear market has had an immediate impact on the growth in crypto ATMs.

Read more:  MasterCard's Live Demo Test: Wrapping CBDC

September 2022 was the first month in history to see a net drop in total crypto ATMs. However, 2023 marked a new low, with total crypto ATM installations falling for two consecutive months.

Meanwhile, payments giant MasterCard has partnered with Binance to launch a card for crypto payments in Latin America.

Guilherme Nazar, managing director of Binance Brazil, made the following statements in a press release:

“Payments are one of the first and most obvious use cases for crypto, but there is more room for adoption to grow.”

Moreover, it was also underlined that at launch, the card will offer up to 8 percent cash back in crypto on eligible purchases and zero fees on some ATM withdrawals.

Related