- IOTA sees a 1.3% price increase despite being delisted from Binance.
- Binance continues to face regulatory challenges, affecting its stablecoin BUSD.
In a startling twist to recent cryptocurrency events, IOTA’s price has managed to surge despite Binance’s recent decision to delist the token. According to a CNN report on Binance’s latest shakeup, the crypto exchange is shedding numerous coins from its platform, including its own stablecoin, BUSD. Binance confirmed the move in a tweet:
As Paxos has halted minting of new BUSD, #Binance will now gradually remove support for the stablecoin on our platform.
BUSD will always remain backed 1:1 by USD, and we continue to support a wide range of other stablecoins.
Find more details below.
— Binance (@binance) August 31, 2023
SEC Allegations Prompt Binance Action
The primary driver behind Binance’s decision to delist certain tokens, including its own BUSD, lies in the allegations made by the U.S. Securities and Exchange Commission (SEC) against Paxos Trust Company. The SEC accuses Paxos of issuing and offering BUSD without proper registration, labeling it an unregistered security. This legal scrutiny has led Paxos to cease the minting of new BUSD tokens, casting a cloud of uncertainty over the stablecoin’s future.
Unfazed Altcoins: IOTA and Others
Remarkably, this mass unpairing from Binance hasn’t significantly impacted the price of several altcoins. Alongside IOTA, coins like ANKR, CVC, EPX, HIVE, KLAY, LRC, MBL, MTL, and UMA were also axed from the platform. Yet, IOTA’s price rose by 1.3% in the last 24 hours, even though its transaction volume decreased by 54%. ANKR experienced a minor 3.5% price decrease, and its market capitalization saw a 37.5% drop in volume transactions, hardly a dramatic fall given the circumstances.
A Turbulent Journey for Binance
The delisting of these tokens is just the latest development in Binance’s tumultuous period. The exchange has faced multiple setbacks recently, including losing trading licenses in various European Union countries such as the UK, the Netherlands, and Cyprus. Additionally, it has had to suspend USD transactions, trade pairs, and OTC trades due to ongoing legal issues with the SEC and the Commodity Futures Trading Commission (CFTC).
Implications for Binance’s Native Tokens
Binance also announced that it would suspend trading pairs connected to two of its native tokens, Binance USD (BUSD) and BNB, starting in September. The end of BUSD support was signaled by Paxos ceasing to mint new tokens, likely influenced by the SEC’s ongoing scrutiny. Binance’s founder, Changpeng Zhao, shared his concerns about the current state of stablecoins, particularly Tether’s USDT, indicating further uncertainty in the stablecoin landscape.
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