Binance earlier this week also swapped the BUSD in its Industry Recovery Initiative Fund to Bitcoin, Binance Coin and Ethereum.
The decision came in following BUSD issuer Paxos’ announcement of halting the minting of new coins due to regulatory concerns.
Binance Coin price is inching closer to its critical resistance around 330 after marking a 7% increase on Thursday.
Binance has been facing a lot of flak from users and regulators for the last couple of weeks. The biggest issue that stumped Binance was the decision taken by Paxos to stop minting new Binance USD (BUSD) tokens, forcing the crypto exchange to switch to other stablecoins.
In a blog post on Friday, the world’s biggest cryptocurrency exchange Binance announced that it would be swapping out its BUSD holdings. The funds in the company’s Secure Asset Fund for Users (SAFU) will no longer contain any BUSD token as they will be swapped with Tether (USDT) and TrueUSD (TUSD).
The decision came into effect following Paxos’ announcement of stopping minting BUSD due to regulatory concerns in the United States. Calling it to be a long-term solution, Binance noted that the change in the asset would not bear any impact on the funds or the users. The fund, back in January this year, reached a total value of over $1 billion at the market price of the asset back then.
This is the second time Binance has taken such a major decision, as earlier this week, the same swapping was carried out for the exchange’s Industry Recovery Initiative fund. Formed after the collapse of FTX in order to bail out worthy suffering crypto operations, the fund was also worth nearly $1 billion at the time of its launch.
Tweeting in regards to the same, Binance said,
“Given the changes in stable coins and banks, #Binance will convert the remaining of the $1 billion Industry Recovery Initiative funds from BUSD to native crypto, including #BTC, #BNB and ETH. Some fund movements will occur on-chain. Transparency. (sic)
Binance Coin price could be seen trading at $330.7, right at the cusp of breaching through the critical resistance at $334.7. Flipping this level into support would mark a multi-month breakout for BNB and also result in a new year-to-date high.
This would also allow Binance Coin price to eventually initiate a sustainable rally, pushing the cryptocurrency to test the resistance block from $335 to $357. If the upper limit of the altcoin is tested, BNB would stand at a four-month high of pre-FTX collapse.
BNB/USD 1-day chart
However, if Binance Coin price faces corrections owing to Thursday’s 7.35% rise, the altcoin could decline to test the critical support at $294.5. Losing this support level would invalidate the bullish thesis and leave BNB vulnerable to falling to $264.9.