• Binance USD’s (BUSD) market cap has fallen below $10 billion for the first time in almost two years, due to US regulatory concerns and a delisting from Coinbase.
• The market cap was at an all-time high of $23.49 billion on November 15th, 2022, but has since decreased by nearly $14 billion.
• This decrease is largely attributed to a potential lawsuit from the US Securities Exchange Commission and its delisting from Coinbase on March 13th.
BUSD Market Cap Falls Below $10 Billion
Binance USD’s (BUSD) market cap has dropped below $10 billion for the first time in almost two years, amid rising regulatory concerns and a planned delisting from cryptocurrency exchange Coinbase. The value of BUSD peaked at an all-time high of $23.49 billion on November 15th, 2022 but has since decreased by nearly $14 billion.
U.S Regulatory Concerns
The decrease in value is largely attributed to a potential lawsuit against Paxos, BUSD’s token issuer, by the United States Securities Exchange Commission on February 12th 2021 over possible violations of investor protection laws. Following this news, the New York District of Financial Services also ordered Paxos to stop minting and issuing BUSD tokens shortly thereafter.
Planned Delisting From Coinbase
On March 3rd 2021, cryptocurrency exchange Coinbase announced that it would be delisting BUSD from its platform on March 13th 2021 due to it “no longer meeting their listing standards”. This further contributed to the fall in value as investors pulled out their investments before the scheduled delisting date.
Impact Of Silvergate Bank Controversy
The wider crypto market also saw a drop in value following controversy surrounding Silvergate Bank with its late filing of its annual 10-K financial report on March 1st 2021. Despite this news having no direct link to BUSD’s falling value, it may have had some impact as investors reacted negatively to this news across the board causing a general reduction in prices across different cryptocurrencies including BUSD.
In conclusion, Binance USD’s (BUSD) market cap has seen a significant drop below $10 Billion due to ongoing U.S regulatory concerns and an upcoming delisting from major exchange Coinbase on March 13th 2021 which have caused investors to pull out of their investments resulting in an overall decrease in price for the stablecoin leading up until today.