TRON Inventor Takes This Altcoin From Binance!

SAFAKNA TURKEY – On February 13, the New York City Department of Financial Services (NYDFS) ordered Paxos to stop issuing Binance USD (BUSD). This triggered the FUD and forced investors to abandon BUSD. Today, they include Tron founder Justin Sun. The founder of Tron transferred 300 million BUSD tokens from his Binance account to Paxos for a nominal withdrawal. This adds to the cases of dozens of whales giving up BUSD every day, like Justin Sun. On-chain tracker WuBlockchain shared the following announcement on the matter:

The address marked Justin Sun withdrew $300 million in BUSD from Binance and sent it to Paxos to be burned (in exchange for cash or USDP).

According to some commentators, this will eventually lead to BUSD delisting from exchanges, including Binance. So such developments are not really suitable for decentralization. While many observers say they will create another stablecoin instead, most holders observe that they are converting their BUSD to USDT. For this reason, it is believed that such actions may lead to negative consequences for the market.

Some commentators believe that the world’s largest cryptocurrency exchange Binance will create another stablecoin instead of using USDT. Otherwise, they state that if Tether also goes to trial, it could cause a big panic in the market.

SEC lawsuit against Paxos surprised the crypto community

The fact that the Paxos Trust Company-issued Binance USD (BUSD) stablecoin is in the eyes of US regulators has drawn mixed reactions from the crypto community. On February 13, the US Securities and Exchange Commission (SEC) filed a lawsuit. against Paxos, alleging that BUSD is an unregistered security, filed a notice of litigation. On the same day, the New York City Department of Financial Services (NYDFS) ordered Paxos to stop issuing BUSD.

As Paxos is being scrutinized by regulators on multiple fronts, various members of the crypto community have taken to Twitter to address the issue. Members of the crypto community have put forward various theories for claims that BUSD is an unregistered security, from ignoring the issue as “FUD” to naming an attack on the Binance exchange. Cryptocurrency analyst Miles Deutscher expressed his thoughts on Twitter, arguing that no one expects a profit when buying stablecoins:

The SEC called BUSD an “unregistered security” and sued its issuer, Paxos. But how can a stablecoin be considered a security if it clearly doesn’t meet the criteria for the Howey test? No one had a “profit expectation” when buying BUSD.

Similarly, a trader nicknamed Tree of Alpha was stunned by the new development. A community member wondered how this is considered a security and asked his followers if they were buying BUSD with the expectation that it would rise to $2. The trader also reached out to SEC Chairman Gary Gensler, saying the government official is leading an “uncontrolled crusade against cryptocurrencies.”

Meanwhile, iTrader AshWSB also commented on the issue, calling it “FUD”. The trader argued that BUSD is fully supported and Paxos’ refusal to issue more tokens would not affect existing tokens. “It’s good to be aware of the news, but not to act emotionally,” the trader warned.

Analyst Tedtalksmacro also reaffirmed the view that BUSD may not meet the security criteria. The analyst speculated that the event could just be “a chance at Binance.”