• Dogecoin (DOGE) has surpassed Binance USD (BUSD) in market capitalization, reclaiming its spot in the TOP 10 by global market cap.
• This is due to a mismanagement of BUSD by Binance, resulting in over $3 billion of BUSD moved away in just 6 days.
• The SEC forbade the stablecoin issuer Paxos from producing any more BUSD, resulting in a 50% decrease of its market cap.
Dogecoin Flips Binance USD Stablecoin
BUSD Loses 50% of Its Market Cap
Mismanagement Leads to Losses for Binance and Paxos
Dogecoin (DOGE) has reclaimed its spot as one of the top 10 cryptocurrencies by global market capitalization after surpassing Binance USD (BUSD). This unexpected achievement comes as a result of a mismanagement of BUSD by the world’s leading crypto platform, causing losses for both itself and Paxos, the issuer of the stablecoin.
Circle Warns DogeCoin Holders About Mismanagement
Close competitors Circle informed the Securities and Exchange Commission (SEC) about Binance’s mishandling of the Paxos-issued stablecoin. Ten days later, a member from DogeCoin Foundation warned all DogeCoin holders about this matter and advised them to switch to a DeFi solution. It can be argued that this was what triggered DOGE’s success against its CeFi rival’s asset. As evidence to this, it is worth mentioning that prior to being delisted from USDC last September, it served as default cryptocurrency in user interface for some time.
SEC Forbids Further Issuance Of New Coins
The situation worsened when USDC and BUSD had similar global market capitalizations before an official ban was handed down from SEC forbidding PAXOS from minting new coins anymore – effectively cutting their own asset’s value in half since November 2022 when it had 22 527 billion dollars worth compared to 11 424 right now at press time.