Over the last week we saw Paxos the firm supplying BUSD to Binance ordered to stop minting. This quite honestly seems like another witch hunt against Binance as making life difficult for Binance seems to be their main objective. Binance being the biggest exchange is going to be targeted by the SEC and any angle they find they will use it to disrupt Crypto. This should be expected as what other attack methods or options do they have left to generate FUD?
BUSD had a market cap of just over $12 Billion which is still a decent chunk of change.
I was seeing some tweets and comments this morning with some even saying stable coins will just be backed by the Euro instead. This is not necessary as stablecoins do not need to be backed by the dollar in order to be pegged to the dollar. We know that is the case with our very own HBD which is backed by Hive to the value of 1 USD.
As you can see 1 HBD is the equivalent of 2.258 Hive which equals $1 and is not backed by the dollar just the value.
There are alternatives open to Binance to mint their own stablecoin like what Cardano have done with DJED which has a reserve coin guaranteeing the liquidity. This would be classed as a decentralised over collateralised option which is where I see stable coins heading getting rid of the dollar backing.
I see no difference whether it is the Euro, Dollar or any currency backing a stable coin as this is what they are going to go after. The regulators feel thrreatened as this is their territory as what would be the difference between a CBDC and a stablecoin backed by the dollar?
Yes I am pro COTI as I have invested in this project but they have delivered for Cardano and can find a new solution for Binance that fits their needs which is a stable coin that holds it's peg.
Binance has minted $50 million True UST over the last day but this is obviously not the answer moving forward. Binance needs their own stablecoin and will not be using another chains token for their needs. I see Coti as the answer right now as they are a stable coin factory that will be ready to mint immediately when asked.
Whatever happens having crypto more decentralised than what it was is a win for all involved and hope this does happen. The US Government is going to pick at anything so this is not over by along shot as they are trying to halt the crypto adoption by generating FUD. It is clear and obvious what they are up to but those outside of crypto have no idea the games that are being played as they are seriously gullible.