Is It Safe to Hold BUSD as Binance Goes on Conversion Spree?
The short answer is, NO! But why would you, anyway?
The article is a decent round-up of all the woes afflicting Binance and its BUSD stablecoin.
However, love the manifested ignorance in this tweet:
Ignorant FUDista pretending to be an expert. Binance is just doing what everybody else is doing, which is divesting themselves of their own BUSD. Those funds are NOT then used as collateral to prop up the same stablecoin! That was the scam, or crap maths, of both LUNA and FTX, but there is no reason to do that in the case of BUSD.
The real worry for me are all the swap pools using BUSD. Those are far more prone to volatility with low liquidity, even with adequate collateral. It is those pools that I would get out of - or if you have the skills, trade the inevitable arbs!
Binance in a world of woe ...
Binance’s market share drops on CFTC suit and no-fee trading halt: Report
Even leaving the toxic USofA won't help them with all the on-going cases.
So many platforms seem incapable of closing down a swap pool. We have seen how dangerous such pools can be in various exploits.
we have seen hacks that can re-route trades through just such dead pools - resulting in stupid swap prices that can then be reversed.