Dear Wexo platform users,
Our team is closely monitoring the situation on the cryptocurrency market and after the recent news regarding the problems of Binance and their stablecoin, we recommend you to exchange Binance USD (BUSD) for another stablecoin or cryptocurrency.
Support for BUSD is coming to an end, we recommend immediate conversion
Binance, the largest exchange, also recommends converting your Binance USD (BUSD) to another stablecoin or available cryptocurrency.
For this reason, Wexo is preparing a delisting of the stablecoin Binance USD, which we will announce in due course.
Wexo users can already convert their BUSD to, for example:
- Tether (USDT)
- Dai (DAI)
- First Digital USD (FDUSD)
A new stablecoin in our ecosystem is First Digital USD (FDUSD). FDUSD is a 1:1 USD-backed stablecoin issued by FD121 Limited, a separate entity operating under the First Digital Labs brand based in Hong Kong.
Wexo users can utilize the free conversion of Binance USD (BUSD) to First Digital USD (FDUSD).
We stop deposit and withdrawal
- Withdrawals of stablecoin BUSD through the BNB Chain, Avalanche, Polygon, Tron and Optimism networks will stop as early as 00:00 (UTC) on September 7, 2023.
- Deposits and withdrawals of BUSD tokens (ERC-20) through the Ethereum network will continue to be supported until further notice.
- Deposits of BUSD through the BNB Chain, Avalanche, Polygon, Tron and Optimism networks will be supported until further notice.
Why is Binance USD in trouble?
In February 2023, the New York Department of Financial Services (DFS) dealt a significant blow to Binance USD by ordering Paxos, the cryptographic company responsible for issuing the stablecoin, to cease minting BUSD tokens.
Subsequently, it was revealed that the SEC had issued a notice to Paxos and planned to sue it in connection with the issuance of BUSD. The agency argued that BUSD is considered an unregistered security. Paxos was thus forced to announce the termination of its cooperation with Binance.
Since the beginning of the year, the market value of BUSD has plunged by more than 80%, falling from $16.13 billion on February 9 to its current value of $3.1 billion.
On the other hand, Tether (USDT), the largest stablecoin on the market, has set a new record market capitalization, which exceeded USD 83.2 billion.