Whales Fleeing Centralized Stables or Anticipating Crypto Market Liftoff?
As you probably read or heard by now, the US SEC seems to be on a crusade against the part of the crypto world they can touch, more or less directly.
Last week it was Kraken and staking on their exchange, this week it's Paxos, and the real target, Binance, with its stablecoin BUSD.
It's interesting that the market exploded yesterday, after some days of red and FUD. Here's bitcoin, but the move was generalized:
Bitcoin jumped over 10% within 24 hours. And people love it.
Now, if we look at this article, it seems whales are fleeing from centralized stablecoins and into bitcoin and other volatile coins. In particular USDC, the article mentions, as Circle may be the next target for the SEC.
The question is, are they afraid of what SEC will do, or do they think it's time to switch because the market is ready to start growing?
Maybe... both?
There were okay-ish CPI numbers announced, but I don't think it was anything to justify a 10%+ jump for bitcoin.
Anyway, going back to the Paxos-BUSD news, after reading CZ's tweet storm multiple times I understood they are not going to cling onto BUSD. In fact, they are looking for alternatives.
Which made me think: Ok, if they won't hold on to their main (only?) stablecoin, one they invested a lot into growing, promoting, and integrating into their products, should I, a mere user do that?
And my decision was not to. So, the day before yesterday I moved all BUSD (and not only) on Hive as HBD. About half of them I added to savings, the other part kept liquid, but on the base layer.
Not even 24 hours have passed and this is what I see on Hive-Engine's discord:
Unstable BSC nodes... Ok, this has happened before. But coupled with the issues BUSD is having, I am glad I took most of my funds off BSC. Still have some BNB there, but it was my decision to leave them. I think Binance will find a solution to the BUSD problem relatively soon (probably another centralized stablecoin, in my opinion).
Normally, when nodes are unstable they are unstable for everyone using BSC. That's why, if you want to use the multi-token bridge from Leofinance, for example, it doesn't hurt if you ask first if they have any reports of stuck transactions when using it lately. It worked for me two days ago. But maybe do a test transaction first, if you have a sizeable wrapping or unwrapping operation to do for BSC.
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I was surprised with the recent BTC pump thinking that the bull has kicked off. These whales definitely played a part. That's a lot of zeros moved out of USDC. They probably foresee something significant happening with that stablecoin.
Yes, that was a significant amount. I think they kind of took this decision in haste because they didn't care how much they moved the market. They either have some information we don't or they consider this the safest play, under these circumstances.
Ultimately the pressure put on these centralized elements will lead to make the decentralized elements more attractive. Exiting these centralized stablecoins is very easy. It could possibly direct more investments towards cryptocurrency with more real use cases and utility.
!PIZZA
!LUV
!CTP
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Unfortunately, there are so few blockchains where decentralization is real and not only a parade word.
They don't know about HBD and I'm not gonna tell them ;).
HBD is too small for them anyway. Let us smaller fish use it and grow and whales can find another ocean where to swim in (if they are really lucky).
Thank you @gadrian. This is very interesting information as well as some good info but sounds like Binance is having a problem. Is it possible someone is hacking Binance? The SEC?
Barb 😊
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If you are referring to the node issues on BSC, they aren't uncommon. In fact, I'd suspect Binance would provoke them if too many funds leave their ecosystem because of the BUSD issues. But that's pure speculation not based on any facts.
Maybe, we will back to the old stage when there's hard to exchange immediately for real money. But, there are many websites we can use crypto as a payment method. It's better than today tbh with all news and regulations like this @.@
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I think that's what governments want to do. To slow down crypto as much as possible, since they can't stop it.
Let them say what they want to say, let them do what they want to do. Just focus on your growth and keep your believe on crypto for the long term, Everything will get better.
I certainly keep my focus. But at the same time, I have to stay away from the fire if I want not to get burned. And centralized things in crypto are catching fire one by one. And it's not like we didn't see it coming a mile away.
The only thing I have on BSC right now is the stuff I have on CUB so I hope things work out soon enough. However, it doesn't bode well for unstable nodes. I hope it gets resolved and it isn't anything major.
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There were unstable nodes in the past. But I prefer to keep things in a friendlier and more resilient environment while we go through the storm.
Is this something good or bad for DeFi?
!PIZZA
!CTP
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Hard to say. This may end up like XRP vs. SEC and last years. And the SEC may have nothing solid against Paxos either.
But they were still able to block the issuance of additional BUSD, which will stop it from growing further (in market cap, therefore adoption) until the issuance block is lifted, even if the SEC has nothing solid against Paxos to produce in a lawsuit.
I gifted $PIZZA slices here:
@rzc24-nftbbg(3/5) tipped @gadrian (x1)
Please vote for pizza.witness!
Nice information, thanks for sharing
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