Binance Coin (BNB) experienced a significant price decrease on Monday, February 13th, amid news of the halt of Paxos’ relationship with Binance. BUSD, a stablecoin owned and issued by US-regulated company Paxos Trust, is the main stablecoin in the Binance ecosystem, and the news that Paxos had been ordered to stop issuing any new tokens triggered massive outflows. BNB dropped by over 10%, trading to lows of $284, its lowest since January 18th of this year.
The US Securities and Exchange Commission (SEC) was also involved in the news, suing Paxos and later announcing that it had terminated its relationship with Binance regarding the brand’s link to BUSD. Binance CEO Changpeng Zhao announced the exchange would continue to support the stablecoin, but acknowledged there would be migrations to other stablecoins due to the regulatory uncertainty.
As a result of today’s losses, BNB’s seven-day chart has decreased by 13%. This news is a reminder of the volatility of cryptocurrencies and the importance of staying up to date with the latest news in the industry.
