• Binance USD (BUSD) issuer Paxos has received a Wells Notice from the SEC, resulting in a drop in the stable coin’s market cap.
• Whale investors have been selling off their BUSD holdings, while BSC-USD purchases are up.
• Despite the large sells, BUSD still remains the largest token holding excluding BNB among the top 100 whales.
SEC Issues Wells Notice to Paxos
The Securities and Exchange Commission (SEC) recently issued a Wells Notice to Binance USD (BUSD) issuer Paxos, causing its market cap to plunge rapidly as it was ordered to stop issuing new tokens and redemptions of the stablecoin surged.
BNB Whales Dump Binance Stablecoin
Data from whale tracking website WhaleStats shows that the top 100 BNB whales are still shedding their BUSD holdings. In a 7-day period, these large investors have sold a little over 2 million BUSD on average, making it the largest token sold by them in the one-week period. Instead of trading back and forth with other digital assets, they have turned to purchasing more of BSC-USD which has seen an increase in purchases averaging $101,040 per week.
Decrease in Smart Contract Usage
The usage of the BUSD smart contract among these large investors has also declined significantly with over 83% decrease within 24 hours and is now ranked sixth most used smart contract among them. Additionally, average transaction size for BTC-USD has grown while average transaction size for BUSD has dropped significantly to just $8.
Large Holders Still Remain
Despite all this selling activity from whales, they still hold approximately 47.12% of their total holdings in BUSB which amounts to $535 million collectively held by them at present time. The stablecoin is also still leading as being their largest token holding excluding BNB even after experiencing such massive drops throughout this year having seen 50% decline since its peak earlier this year according to data from TradingView’s Market Capitalization chart for it.
Conclusion
Although there is an ongoing trend of whale selloff on Paxos’s troubled stablecoin and decreased usage of its smart contracts among larger investors due to lack of liquidity since new tokens cannot be issued anymore; despite all this activity its long term holders remain unfazed and continue holding onto majority portion of their funds invested into it indicating potential recovery chances later down the line once situation resolves itself either way or another way around it remains yet unclear until then however considering current status quo at least some faith appears held by them towards its future prospects ahead if nothing else but only time can tell what lies ahead ultimately for this digital asset moving forward keeping everything else constant till then…
