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BUSD Under Fire + Super Bowl Super Drop
Last Updated: February 13, 2023
✓ Fact Checked
BUSD IN TROUBLE
Well, Monday is here, but so is your new serving of FUD (Fear, uncertainty, doubt). Hey, it's not us who choose what happens in the crypto realm.
Binance's stablecoin sank by 0.08% due to unpleasant proceedings between Paxos (the issuer of BUSD) and financial regulators.
What's up?
Well, the situation is very much... similar to what we've seen before with other coins and companies.
The SEC believes that BUSD is an unregistered security. As a result, the SEC sued Paxos Trust, as the issuer of BUSD, for issuing BUSD.
And to make matters worse, the NYDFS (New York Department of Financial Services) has ordered the company (Paxos) to stop issuing new stablecoins.
Well, that's a code red for the crypto community. The big guys had to step in and tell whether people have the right to panic all over the place.
Binance's CZ said that the capitalization of BUSD will only decrease as a result of such a ban.
He also assured users that the stablecoin in question is fully secured and there is nothing to worry about.
However, the CEO of Binance suggested that users will eventually switch to other stablecoins, and therefore Binance may give up using BUSD as the main trading pair.
As of today, BUSD's market capitalization stands at $16 billion. It's the 3rd largest stablecoin.
Things are escalating quicky. It's really difficult to say what things will look like as soon, as tomorrow.
Of course, such an 'update' caused a furore within the crypto community. For example, analyst Miles Deutscher writes:
It is expected that regulatory bodies will increase their scrutiny in the coming months, particularly for stablecoins registered in the US, which are being monitored by the SEC.
As for this moment, Paxos still allows people to retrieve their money, and BUSD remains backed 1:1 with the US dollar. So there is no reason for immediate concern at this time.
Two potential outcomes:
1. If fear, uncertainty, and doubt (FUD) continues to spread, a decline similar to FTX may occur. Despite this, Binance is believed to be well-positioned with significant reserves, both on paper and in practice, so if a fall were to occur, it wouldn't be that drastic.
2. If SEC takes action against Paxos and Binance, a counter-trend may occur. As a result, Bitcoin may break away from the S&P 500 and demonstrate how to perform during bearish market conditions.
Btw, no one knows for sure. This is definitely not financial advice, since you can never be sure what road will the cryptomobile take.
TL;DR: The Securities and Exchange Commission (SEC) sued Paxos, the issuer of Binance's stablecoin - BUSD, for issuing an 'unregistered security'. The New York Department of Financial Services has ordered Paxos to stop issuing new stablecoins. As a result, BUSD dropped by 0.08%. Panic is felt within the crypto sphere.
SUPER BOWL SUPER DROP
Well, there were some more exciting things this weekend as well. Like Rihanna's Super Bowl performance. Or the Super Bowl itself. Something interesting happened there.
Last week, the Associated Press reported that FOX Sports actually banned all crypto advertising. This applies to the Super Bowl event, the mega event of American football.
This marks a change. Last year, the Super Bowl was called the Crypto-Bowl because of the abundance of crypto-ads.
FTX, Coinbase, eToro, Cryptocom and other companies grabbed the spotlight. In 2023 they turned out to be unwanted guests.
Nevertheless, one cryptocurrency company broke into the Cup via television, which draws an annual audience of 100 million viewers.
The company's called Limit Break. It's a company that produces NFT and blockchain games. They spent $6.5 million to get some of that precious TV time.
So Limit Break aired a 30-second commercial between games, advertising a "free-to-play" game and "free" collectible NFTs.
The NFTs collection is called 'DigiDaigaku Dragon Eggs'.
All you needed to do was to scan a QR code that was shown in the ad. Sounds a bit too good to be true. And it wasn't that smooth.
There were people from Asia and Europe, using VPN and all that, experiencing rigid delays, patiently waiting for the QR code.
The code led to a tweet by CEO Limit Break, and he, posted the tweet... 3 minutes before the actual ad was aired.
Those who noticed — managed to mint some extra 'Dragon Eggs' within 2-3 minutes, and those who patiently waited for the broadcast were left with the feast's leftovers!
The collection is currently trading on OpenSea. Its floor price stands at 0.32 ETH (~$480). Last night these NFTs were being traded at 0.55 ETH (~$900).
The NFT collection has exhibited an impressive performance and its sales have been noteworthy, despite the present market conditions.
TL;DR: Despite a ban for all crypto-related ads, one NFT/blockchain games company managed to get some of the ad space during Super Bowl 2023. It offered a QR code which led users to claim their free NFT from the 'DigiDaigaku Dragon Eggs' collection.
VENTURE MONDAYS
It's Monday again. It's the day of the last week's winners.
Omnichain liquidity platform Cedro Finance raised $1.5M in a pre-seed funding round led by Shima Capital, with participation from Infinity Ventures Crypto and Mask Network.
Cedro Finance aims to create a unified liquidity platform that sits on top of multiple chains, making it easier for users to access liquidity across multiple chains.
Cedro is launching as a multi-chain lending and borrowing platform, introducing a unique feature called CULT (Cedro Unified Liquidity Token) which unifies the liquidity of multi-chain assets like USDC, AAVE, and UNI.
Web3 social data portal Port3 Network raised $3M in a seed funding round led by KuCoin Ventures, with participation from Jump Crypto, Block Infinity, SNZ, Cogitent and Momentum6.
Port3 is a Web3 social data portal that aggregates social data from both Web2 and Web3 platforms. It consists of three components: a social data aggregation channel, a Port3 protocol for decentralized data storage, and SoGraph.xyz, a social data dashboard for analysis.
The goal of Port3 is to build a gateway to Web3 by unlocking community profiling and serving project parties, investors, researchers, and users. It provides bots services and real-time analytics dashboards.
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