Binance Delists Ten Coins But IOTA Price Rises Despite the News
Altcoin prices hardly affected by Binance's decision to end related trade pairs | Credit: Shutterstock
Key Takeaways
- IOTA price rises despite being among delisted coins.
- Binance discontinues support for BUSD.
- Exchange fears SEC scrutiny.
- Company founder Changpeng Zhao is not a stablecoins supporter.
Binance has been undergoing numerous changes recently and has finally delisted ten coins. But some of them saw an increase in price despite the news, according to the latest figures.
For example, IOTA price rose 1.3%, although transaction volume fell 54%.
The main reason behind Binance’s unpairing move, which includes its own stablecoin BUSD, is the US Securities and Exchange Commission’s (SEC) allegations against Paxos Trust Company for issuing and offering BUSD, defining it as an unregistered security.
This legal pressure allegedly prompted Paxos to stop creating new BUSD tokens, adding to the uncertainty over the future of the stablecoin.
Altcoins Barely Affected By Binance Unpairing
The company’s announcement to suspend pairs with altcoins such as ANKR and IOTA has surprisingly left the altcoins unaffected. The other coins delisted include CVC, EPX, HIVE, KLAY, LRC, MBL, MTL, UMA
According to Coinmarketcap, following Binance’s announcement. IOTA, price rose by 1.3% in the last 24 hours but its transaction volume by market cap fell by 54%.
ANKR, although it hasn’t had its best week so far, barely got influenced in pricing by Binance’s unpairing. The altcoin experienced a 3.5% price decrease and its market capitalization saw a 37.5% drop in volume transactions over the past 24 hours.
BNB & BUSD Unpairing
Aside from the unlisting of other tokens, many took note that the BUSD saga seems to be coming to an end following the crackdown on its issuer, Paxos
“Fellow Binancians,” a statement from the exchange read . “Binance will remove and cease trading on the following spot trading pairs:”
ANKR/BNB, CVC/BUSD, EPX/BUSD, HIVE/BUSD, IOTA/BNB, KLAY/BUSD, LRC/BNB, MBL/BUSD, MTL/ETH, UMA/BUSD
BUSD issuer Paxos will also stop minting BUSD, signaling the end of the token’s support from all stakeholders. The company’s decision to part ways with the stablecoin is probably influenced by the ongoing SEC troubles .
Nevertheless, Binance’s founder, Changpeng Zhao, appears to harbor reservations about stablecoins in their current form, particularly Tether’s USDT.
In an AMA session, CZ said: “I personally have not seen any audit reports of USDT. I don’t think most people I spoke to have not seen that either. So it’s kind of a black box because we just don’t know.”
Binance did not immediately respond to a request for comment.
Abundant Changes for the Exchange
In the recent past, Binance was forced to halt USD transactions, trade pairs, and OTC trades. On top of that, the company lost its trading licenses in the UK, the Netherlands, Cyprus, and other EU countries.
These are consequences of Binance facing lawsuits filed by the US Securities and Exchange Commission (SEC), and the Commodity Futures Trading Commission (CFTC). Moreover, the company failed to meet anti-money laundering standards set by European Union regulations.
In a recent post, Binance announced it will be suspending trade pairs connected to two of its native tokens, Binance USD (BUSD), and BNB starting in September.
