The market cap of Paxos-issued Binance USD has dropped by nearly $2 billion since New York’s financial regulator on Monday ordered its creator, Paxos, to stop issuing the dollar-pegged coin.
After sporting a market cap of about $16.15 billion on Monday morning, the coin has dropped more than 9% to $14.6 billion on Wednesday, according to CoinGecko data. It’s down about 5% in the last 24 hours.
Paxos said it will stop issuing new BUSD tokens on Feb. 21 and that the tokens will be redeemable for U.S. dollars or Paxos’ own stablecoin, Pax Dollar, until at least February 2024.
That hasn’t stopped spooked investors from selling their holdings.
Following the announcement, the world’s largest crypto exchange, Binance, which licensed its name to the token, saw outflows of $2.7 billion over 24 hours. Inflows to the exchange over the same period resulted in a net outflow of $788.5 million, according to Nansen data. It wasn’t clear how much of the outflows were specifically BUSD redemptions.
Binance CEO Changpeng “CZ” Zhao tweeted on Tuesday that the…