• Dogecoin (DOGE) has overtaken Binance USD (BUSD) in the global market capitalization.
• The SEC has forbidden Paxos, the issuer of BUSD, from minting any more stablecoins.
• As a result, BUSD’s market cap has dropped -$2.45 billion and most of it has moved to USDT.
Dogecoin Flips Binance USD Stablecoin
Dogecoin (DOGE) reclaimed its spot in the TOP 10 by global market cap, surpassing the leading crypto platform Binance’s stablecoin – for the first time. Close competitors Circle informed the Securities and Exchange Commission (SEC) about Binance’s mismanagement of the Paxos-issued stablecoin Binance USD (BUSD). DOGE slipped by 2.2% despite this unusual achievement.
Circle Accuses Mismanagement
With over $3 billion of BUSD moved away in 6 days, Circle publicly admitted that quarterly losses and miscalculations in balance were directly attributable to Binance delisting USDC two months prior. Moreover, USDC and BUSD had a similarly sized global market capitalization before the SEC forbade Paxos from producing any more stablecoins.
BUSD Market Cap Drops 50%
The ban on minting new BUSD cut its market cap by 50%, dropping it -$2.45 billion from 16.1 billion to 13.7 billion as of now. Most of these funds have been transferred to Tether’s USDT token which saw an increase +$2.37 billion from 67.8 billion to 70.1 billion in market capitalization due to this shift in assets . Additionally, USDC also suffered a decrease -$739 million from 42.3 billion to 41.5 billion as a result of this landscape changeover initiated by Dogecoin’s surprise flip on February 17th 2023 .
Dogecoin Foundation Member Warns Holders
Interestingly, this happened ten days after one Dogecoin Foundation member warned all their holders about switching away from their CeFi platform’s default cryptocurrency solution into DeFi alternatives due to possible mismanagement issues with their asset management practices on behalf of Paxos and its issued tokens such as PAX Gold (PAXG), PAX Standard (PAX) or Tether Gold (XAUT).
It can be argued that Dogecoin made the most out of recent fuss surrounding Paxos‘ issued tokens and overthrew them with relative ease due to new SEC regulations released earlier during November 2022 which forbid any further production or minting of new coins under their brand name . As a consequence of this unexpected event , we are witnessing a major shift in digital asset distribution between different blockchain platforms such as Ethereum , Tron or EOS where newly created applications are being rapidly developed day after day .