Paxos and the Binance USD Stablecoin

• Paxos recently published a letter from its CEO, Charles Cascarilla, in which he discussed the company’s ill-fated BUSD stablecoin.
• The U.S. Securities and Exchange Commission (SEC) has issued a Wells Notice prospectively alleging that BUSD is a security.
• Paxos is engaging with regulators on other matters and is pursuing an application with the SEC through which it intends to offer tokens as securities.

Paxos Asserts Binance USD Is Not A Security

Paxos recently published a letter from its CEO, Charles Cascarilla, in which he discussed the company’s ill-fated BUSD stablecoin. Action from New York regulators led Paxos to stop issuing its Binance USD (BUSD) stablecoin on February 13th. The U.S. Securities and Exchange Commission (SEC) separately issued a Wells Notice prospectively alleging that BUSD is a security.

Cascarilla wrote that Paxos does not believe that under either the Howey or Reves tests, their stablecoins meet the criteria to be considered securities. According to him, these coins are always backed by cash equivalents such as dollars or US Treasury bills but never securities. He also stated that Paxos is involved in “constructive discussions” with the SEC on this matter but will share more information when it can do so publicly. Additionally, if necessary they may “vigorously litigate” their position against any claims made by the SEC.

BUSD Redemptions So Far

Cascarilla reported that Paxos has facilitated more than $2.8 billion in Binance USD redemptions without disruption in the cryptocurrency market since February 14th when Crypto Slate reported $300 million of redemptions completed at that time. He also mentioned that they are engaged with regulators on other matters – they are pursing an application with the Office of the Comptroller of Currency (OCC) through which they aim to obtain a bank charter as well as an application with the SEC through which they intend to offer tokens as securities .

Response From Crypto Community

The crypto community has been largely supportive of Paxos’ stance against claims made by the SEC regarding their stablecoins being classified as securities; many have pointed out how this move could be beneficial for long-term growth of blockchain projects throughout America and beyond if successful .

Conclusion

Though there is still much uncertainty surrounding this case due to lack of clarity from both sides , it seems clear that Paxos will continue working closely with regulatory bodies while defending their position when necessary . They have shown commitment towards making sure all redemptions go smoothly while pushing forward various applications related to banking charters and token offerings .

• Terra’s classic stablecoin (USTC) saw gains of 19% today in response to news that issuance of Binance USD (BUSD) will be halted.
• USTC had been trading at $0.027 or less for several months before the surge, indicating that investors are turning to decentralized stablecoins like USTC as a safe-haven asset.
• Gains were also seen in other decentralized stablecoins such as Neutrino USD, USDX [Kava], and VAI.

Terra’s Classic Stablecoin Sees Surge

Terra’s classic algorithmic USD stablecoin, Terra Classic USD (USTC), saw a surge of 19% today on Feb 13th. The surge was in response to news that issuance of Binance USD (BUSD) will be halted, causing a loss of confidence in centrally backed stablecoins among some investors who have turned to decentralized options instead, such as USTC.

USTC Price History

USTC had been trading at $0.027 or less for several months until Feb 3rd when it began gaining value again. This indicates that some investors are turning to decentralized stablecoins like USTC as an alternative safe-haven asset given the failure of centrally controlled BUSD.

Gains In Other Decentralized Stablecoins

Today’s gains weren’t limited to USTC alone; other decentralized stablecoins also saw growth over the same period — Neutrino USD rose by 13.11%, now worth $0.20; USDX [Kava] rose 0:78%, now worth $0.84; and VAI increased by 1:96%, now worth $0.97 respectively.

Recovery From Collapse

Despite these gains though, it is unlikely that USTC will manage to reclaim its former price peg of $1 due to its collapse in May 2022 and because it is no longer associated with the revived Terra project which does not use a stablecoin as a core feature anymore.. However these modest gains may still provide enough room for holders to earn on their investments if they choose to do so wisely..

Conclusion

Overall this recent surge shows that decentralized cryptocurrencies remain resilient even against central bank failures and can still offer potential returns despite their past collapses or lack of association with larger projects — providing users with an alternative option for investing should they decide so wisely

Justin Sun Backs FTX Debt Token ‚FUD‘

• Justin Sun, the founder of exchange Huobi, has put his name behind Debt DAO and its project to issue FTX users‘ debt as a bond token, FUD.
• The bond token will have an initial supply and circulation of 20 million, representing 20% of the notified FTX debt.
• After FTX confirms the debt amount through official disclosure, Debt DAO will issue additional tokens proportional to the confirmed debt amount.

Details About FTX Debt Token ‚FUD‘

Debt DAO has been notified of around $100 million in debt by FTX creditors and has issued 20 million FUD tokens valued at $1 each. After FTX confirms the debt amount through official disclosure, Debt DAO will issue additional tokens proportional to the confirmed debt amount. These tokens will then be distributed to FUD holders through an airdrop. For instance, if the debt amount confirmed by FTX is $60 million then Debt DAO will issue another 40 million FUD tokens in addition to the initial 20 million and holders of 1 FUD before the secondary public offering will receive an additional 2 FUDs from the airdrop.

Justin Sun’s Statement onFTX Debt Token ‚FUD‘

Crypto exchange Huobi listed the FUD token for trading on Feb 5th and Justin Sun said that it is a „top quality“ asset that would benefit everyone in crypto world by providing creditors with new levels of liquidity and enabling them to trade their debts on open market. Moreover, after an airdrop; DebtDAO will do a 1:1 debt buyback for FUD holders.

Issuance Of Contracts Or Notarized Proofs Of The Debt

Debt DAO will issue contracts or notarized proofs of the debts at an appropriate time and also urged FTX creditors with over $10 million in debts to contact them for a „debt audit and issuance“ so they can circulate their debts in secondary market.

Conclusion

In conclusion, Justin Sun’s backing of this project could potentially help many creditors get back their funds from FTX exchanges while also giving them opportunities to trade their debts on open market with new level of liquidity options provided by this tokenization process initiated by Huobi exchange under Justin Sun’s supervision.