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Thankfully Binance holds their customers' funds 1:1. Except USDC, which they've replaced with a different stablecoin BUSD, which is just like USDC except instea
by nailer 4y ago
Thankfully Binance holds their customers' funds 1:1. Except USDC, which they've replaced with a different stablecoin BUSD, which is just like USDC except instead of trusting Circle, it trusts, er... Binance.
Rate limited, so to reply to the gent from Paxos: I did check that out, but:
> Binance-Peg BUSD, which is not issued by Paxos and is not regulated by NYDFS, is a separate product. Binance independently mints Binance-Peg BUSD on other blockchains (e.g., BNB Chain, Polygon and Avalanche) and pegs the tokens to BUSD on a one-to-one basis. This allows holders of both tokens to swap tokens between Ethereum and other blockchains.
From https://paxos.com/busd/ https://paxos.com/busd/
Obviously even if one believes in BUSD, the matter of someone who trusted Circle having their coins transparently replaced with a different coin using a different trust model is concerning.
- elmalto 4y agoBUSD is a US New York DFS, the banking regulator, regulated stablecoin. USDC on the other hand is not regulated. Paxos (my employer) issues BUSD, not Binance
- rippercushions 4y agoNope, Binance also issues BUSD on its own "Binance Smart Chain" (BSC). Why you would trust this, and why it's called the same thing as the one on the Paxos chain, is beyond me. https://thefipharmacist.com/binance-peg-busd-vs-busd/ https://thefipharmacist.com/binance-peg-busd-vs-busd/
- m00dy 4y agoThat is true...Paxos only issues the token on Ethereum...I also asked the same question myself..What if binance issues more busd on his own ? I think CZ is under pressure as he has Chinese look (non-western) but major player in crypto which is something not okay for US or west in general. He knows this and it would be too stupid for him to issue arbitrary number of busd tokens to break 1-to-1 peg. edit: you can also take a look at bnb-chain's pegged token stats. https://github.com/bnb-chain/peg-token-stats/blob/master/2022/12/peggyTokenStats-16.csv https://github.com/bnb-chain/peg-token-stats/blob/master/202...
- sam_goody 4y agoIf you are purchasing USDC and holding it on Binance, you are probably better off buying BUSD. If Binance crashes, than both USDC and BUSD will be inaccessible. If Circle crashes, than USDC on Binance will be gone, but not BUSD. As long as Binance doesn't crash, BUSD will be fine. I work under the assumption that both Circle and Binance are freely using much of their customer's funds, and that Binance has both larger pockets and a larger hole. If I am wrong and someone here is honest, than the above is all-the-more so.
- m00dy 4y agoIf you keep your BUSD on Ethereum, you would be fine in theory even if Binance is gone.
- galuggus 4y agoIs Binance exposed to USDT?