Even though it has regained strength, the stablecoin BUSD temporarily lost its peg value amid drying liquidity on Binance.
The drop in value may be attributed to a single $647,000 market sell order which triggered the loss (20 cents) of 1:1 value with the USD. Not long after this event, BUSD quickly gained its peg value on Binance against DAI as arbitrage traders could feasibly buy it for below $1 on Binance and sell for $1 on another exchange.
BUSD is one of the largest stablecoins in the crypto market, it is issued by the crypto firm known as Paxos, recently, it ran into trouble with the US regulators and has been ordered to stop issuing BUSD, an event reacted to by Binance that it will keep supporting BUSD while exploring a non-USD stablecoin.
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