BUSD will no longer go into circulation as Binance set to convert the remaining $1 billion to volatile asset.

Recent the crypto industry have been suffering from lot of changes. The regulators on stablecoins, the collapse of banks all together made the crypto environment more tough and many Investors are discouraged.

The collapse of Silvergate, Silicon Valley bank and Signature Bank has caused us a lot of fear that even made a big effect on the crypto market. Several crypto lender use banks as their Fiat-backed stablecoins, and some are getting exposure to them and this is spreading throughout financial markets. The contagion was what made FDIC to rollout $25 billion backstop to prevent the economy and future damage of banking system.

Amid the changes in the market and recent regulatory scrutiny on Binance exchange Issuing of BUSD. The SEC said BUSD is security and stop the issuer Paxos to stop minting BUSD. With these changes lately on stablecoins, BUSD will no longer go in circulation.

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Binance CEO CZ announced this through a tweet on Monday that “Binance will convert the remaining $1 billion in BUSD due to recent changes in the market”.

In fact the changes in bank and stablecoins made the whole system in US to changes and will likely result in Fed paused its rate-hiking. While the game is going to be tough for crypto industry as authority is likely going to put more forced on them.

The $1 billion BUSD Binance have in reserved will then go for trading of other cryptocurrency which will probably help the market. Even this already announced on Monday when Binance moves $980 million in 15 secs for the cost of $1.29.

However, Binance decision was tough one as it sell stablecoins for volatile asset during this time when the market is not stable and anything can happen or affect the growth of the market.

Crypto market is volatile while the option of stablecoins that investors use to regulate the market was the one causing domino effect on the market. UST depeg caused a big effect, USDC recent instability could worsen if Fed don't take control of the situation. The instability already affecting other stablecoins like USDD, DAI and they also trade below $1 peg before backstop is been rollout.

USDC rebounds and it was now back trading at $1, bitocin liquidation hit highest level in just a short time after Asia market open on Monday. But I will admit that crypto industry should stop the reliance on traditional bank.

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