You might like What is Binance USD ($BUSD)?

According to an announcement which is published on August 31 by Binance, users should convert their BUSD coin assets to other alternative stablecoins. However, it is clear that the value of the coin won’t change. Additionally, Binance exchange will progressively reduce its support on $BUSD, and it will make an announcement about services damaged. Previously, Paxos had made an announcement to stop the mining of $BUSD tokens.

Despite the decrease in support of BUSD$, Binance will continue its commitment to other coins. Therefore, it suggests that users should convert $BUSD to other assets before February 2024.

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Thus, Binance will delist $BUSD on margin and spot progressively. It says that they will explain the delist news soon. However, users will be able to move on to trading other assets with various stablecoins pairs.

Furthermore, Binance is going to suspend lending $BUSD on cross margin at 09.00 on September 7 of this year. Also, users who use cross-margin and portfolio margin won’t add $BUSD to their wallet but they have permission to use other coins.

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What is a Stablecoin?

A stablecoin is a virtual currency generally pegged to the US dollar at a 1:1 ratio. Examples of stablecoins include Binance USD, USDT, and USDC. There are over 200 stablecoins in the crypto market, categorized into four types:

1. Fiat-backed stablecoins: These stablecoins integrate with fiat currencies on a 1:1 scale. Fiat-backed stablecoins must always hold an equivalent amount of fiat currency in circulation. For example, if you want to introduce 200,000 stablecoins to the market, you must have $200,000 as collateral. BUSD, USDT, and USDC are examples of fiat-backed stablecoins.
2. Commodity-backed stablecoins: These stablecoins often use precious metals like silver and gold or real estate as collateral. xAUT and PAXG are examples of commodity-backed stablecoins.
3. Crypto-backed stablecoins: These stablecoins use one or more cryptocurrencies as collateral. The collateral cryptocurrencies are locked in specific wallet addresses on blockchains. DAI is an example of a crypto-backed stablecoin.
4. Algorithmic stablecoins: These stablecoins are supported by price algorithms without requiring collateral. The algorithms are equipped with smart contracts and stabilization mechanisms. Think of any cryptocurrency that utilizes smart contracts as an example. For instance, during the $USTC incident, the price algorithms were supported by $LUNA. Both tokens were part of the 2022 crypto crash.

Who is the Founder of Binance USD?

BUSD, a collaboration between Binance and Paxos, and launched in 2019. It aims to increase the competition in the stablecoin market. Also, regulated by the New York Department of Financial Services. Paxos is a blockchain company that has raised over $500 million in investments. The company offers various stablecoin and commodity cryptocurrency units, such as PAXG and USDP. Paxos also provides services to hundreds of leading financial institutions like Bank of America, Mastercard, and PayPal. It is the first and only blockchain-based company approved by the SEC for stock trading. Paxos founded the itBit exchange in 2012.

What is its Purpose?

BUSD is available in daily trading, futures trading, liquidity provision options, collateral, donation campaigns, and launchpad participation. It is currently one of the most popular stablecoins and can generate a passive income of up to 20% through various interest options. In 2023, Paxos announced that BUSD would stop.

Let’s now take a look at the BUSD token economy!

Binance USD Token Economy

As mentioned earlier, BUSD issuance stopped in 2023. In addition, the current circulating supply of Binance USD is 6,280,952,229 tokens, with a market value of $6,281,144,930.

Also, you can access real-time data on Binance USD below.

Where Can I Buy BUSD?

You can find BUSD on various centralized and decentralized exchanges. For example, you can buy, sell, and perform other transactions on the Binance exchange. If you are unfamiliar with how to use the Binance exchange, you can learn through tutorial videos on the Coin Engineer YouTube channel.

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