Schlagwort: crypto business

• The SEC issued a wells notice to Paxos concerning the issuance of Binance USD (BUSD) stablecoin.
• Shortly after, the NYDFS ordered Paxos to stop issuing BUSD.
• While BUSD issuance stopped, Paxos is in charge of BUSD redemptions

Crypto exchange Binance has seen increased withdrawals over the past 24 hours as investors act on the recent allegation by the US SEC that Binance USD (BUSD) stablecoin is a security. Data obtained from the blockchain intelligence platform Nansen indicate that net outflows from the exchange had hit $788 million in the past 24 hours.

This is the largest net outflow from Binance since December 17 when the exchange’s proof of reserves audit was pulled down from the website of Mazars auditor.

Binance has however come out to array fears saying that funds are safe and that it can handle any amount of withdrawals. The exchange said:

“We run a very simple business model — hold assets in custody and generate revenue from transaction fees.”

It all started with the US SEC issuing a wells notice to Paxos Trust Company stating that it was violating investor protection laws by issuing an unregistered security, the BUSD. Following the SEC’s action, the New York Department of Financial Services (NYDFS) ordered Paxos to halt the issuance of BUSD and Paxos immediately obeyed the orders.

Increased BUSD redemptions

As investors rush to withdraw their funds from Binance, the BUSD token redemptions have also surged. Data from Peckshield shows that over 342 million BUSD tokens have been burned in the past 24 hours.

Investors seem to be cashing out of the BUSD stablecoin as fears of the SEC escalating the issue and filing a lawsuit as is the case with Ripple’s XRP token gain traction.

The post Binance withdrawals surge post SEC’s Paxos clampdown appeared first on CoinJournal.

• Binance Coin price fell amid news around Paxos and its stablecoin BUSD
• BNB traded to lows of $284, extending intraday declines from highs of $321 as uncertainty engulfed the stablecoin.
• Paxos, which issues and handles BUSD redemptions, announced it had halted its relationship with Binance.

BNB, the native coin of the Binance exchange, has extended intraday losses to over 10% as price action continued to suffer from negative news.

BNB price dumps 10% amid BUSD reports

As we reported earlier, Binance Coin had dropped by nearly 6% in the morning as the market reacted to news surrounding Binance USD (BUSD), a stablecoin owned and issued by US regulated company Paxos Trust.

But BUSD is the main stablecoin in the Binance ecosystem and the news that Paxos had been ordered to stop issuing any new tokens triggered massive outflows. The negative sentiment increased as it emerged the US Securities and Exchange Commission (SEC) was suing Paxos, which later on in the day announced it had terminated its relationship with Binance regarding the brand’s link to BUSD.

Here’s a chart by one market analyst showing an earlier reaction to the news.

Binance coin BNB slumped >8% after New York Regulator ordered Paxos Trust to stop creating more of its #BUSD token. BUSD is a stablecoin backed by US Dollar, which was created in 2019 in partnership betw crypto platform Binance & blockchain comp Paxos. BNB is native Binance token pic.twitter.com/TXu514EEQ6

— Holger Zschaepitz (@Schuldensuehner) February 13, 2023

While Binance CEO Changpeng Zhao announced the exchange would continue to support the stablecoin, he did acknowledge there would be migrations to other stablecoins as result of the regulatory uncertainty.

The price action for BNB on Monday afternoon has thus seen the coin trade to lows of $284, with these level the lowest for Binance Coin since 18 January 2023. The coin currently trades around $286 according to data from CoinGecko.

Today’s losses have pushed the price -13% down on the seven day chart.

The post Binance Coin extends losses as BNB dumps 10% amid negative news appeared first on CoinJournal.

• Cathie Wood bought 162,325 shares of Coinbase Global Inc on Friday.
• Her stake in the crypto exchange is now worth more than $18 billion.
• Coinbase stock has already rallied about 70% since the start of 2023.

Shares of Coinbase Global Inc have already rallied about 70% this year but Cathie Wood remains convinced they’re not out of room to run just yet.

How many shares of Coinbase did she buy?

That’s based on a rather massive sum of money she recently spent on buying Coinbase stock.

The famed investor took about a month-long break from investing in the crypto exchange. On Friday, though, she returned and bought 162,325 shares of Coinbase.

In total, the recent purchase was worth $9.20 million and was split between two of her funds; the flagship ARK Innovation ETF (ARKK) and ARK Next Generation Internet ETF (ARKW).

Interesting, Wood bought Coinbase stock ahead of the anticipated year-on-year weakness in its Q4 results. Next week, the Nasdaq-listed firm is expected to report $2.39 a share of loss for its fourth financial quarter – well below $3.32 a share it “earned” a year ago.

SEC is getting more aggressive against crypto

Earlier in February, Cathie Wood reiterated her super bullish view on Bitcoin, which, she said, will eventually be worth $500,000.

She’s keeping optimistic despite a more aggressive Securities and Exchange Commission (SEC) that recently pushed Kraken into terminating its crypto-staking operations in the U.S. It’s worth noting that Coinbase offers similar services to its U.S. clients as well.

On Monday, the regulator ordered Paxos Trust to stop issuing Binance USD as well. Nonetheless, across all eight of her funds, Wood now owns more than $18 billion worth of Coinbase Global Inc. The crypto company accounts for 3.88% of her total holdings.

Wall Street currently has a consensus “hold” rating on Coinbase stock.

The post Cathie Wood spends another $9.20 million on Coinbase stock appeared first on CoinJournal.