The cryptocurrency market is still struggling to find itself after posting record losses on Thursday. Binance has decided to give it another cash injection of $7M.
Binance, together with the PAX Treasury, has just issued over $7 million worth of its own stablecoin Binance USD (BUSD). The issuing was picked up by Whale Alert (@whale_alert) and may help to provide the cryptocurrency market with some much-needed relief.
7,095,239 #BUSD (7,095,239 USD) minted at PAX Treasury
— Whale Alert (@whale_alert) March 14, 2020
Fresh Money Entering the Market
The PAX Treasury conducted the BUSD issuing, as it has done so many times in the past as part of a long-standing partnership with Binance’s stablecoin project. The last BUSD issuing occurred in late February.
Therefore, it’s not surprising that the PAX Treasury decided to simultaneously also issue another 7.6M of its own stablecoin, Paxos Standard (PAX) when it issued BUSD. That means over $14M of fresh money will soon be entering the cryptocurrency market. This might give the market a much-needed boost.
— Whale Alert (@whale_alert) March 14, 2020
BUSD Remains Relatively Obscure
Although Binance is the largest cryptocurrency exchange, its stablecoin significantly lags behind its competitors.
Binance USD (BUSD) still has a relatively small trading volume compared to more established stablecoins like Tether (USDT) and USD Coin (USDC).
At the time of writing, BUSD has a market capitalization of around $133M and has a trading volume of over $119M. It should be noted that this number has grown significantly in just the past few months. BeInCrypto reported in September that liquidity for BUSD was once so bad that someone was able to purchase Bitcoin at just $1,800.
However, BUSD has made strides in pleasing regulators. In early January, the stablecoin received the green light from the New York State Department of Financial Services. It now has full regulatory approval and could easily pick up more users in the coming months.
It’s currently unclear whether or not the fresh BUSD and PAX injection will be enough to counter the negative market momentum. With the coronavirus pandemic still ongoing, markets look set to be rattled and volatile for the next few months. At the time of writing, Bitcoin is up 3.2% on the daily and is trading for $5,250
The post Binance Issues Another $7M in BUSD Stablecoins to Boost Shattered Markets appeared first on BeInCrypto.
from BeInCrypto https://beincrypto.com/binance-issues-another-7m-in-busd-stablecoins-to-boost-shattered-markets/
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