As the security and exchange commission (SEC) targets Binance’s stable coin: BUSD and orders Paxos, the company issuing the BUSD to stop, the ‘stable’ price of the stablecoin has started to deviate from its peg to the dollar. A lot of people are selling in the midst of the new wave of FUD. We take a look at what we can do to remain calm and be profitable…
De-pegging of BUSD?
After a series of targeted attacks on the most notorious stablecoin of them all USD Tether – USDT, the time has come for an regulated attack on Binance USD – BUSD. Some speculate it is a retaliation for the role of Binance for driving cryptocurrency exchange FTX into the ground. We’ll never know the true motives, what is most important is that bad news has come out and that the BUSD price is deviating from its peg.
How to short Binance USD – BUSD?
Shorting BUSD can be done on Binance itself. You’ll have to use the margin function available on their spot markets. First transfer any crypto collateral from your Fiat And Spot- account into your Margin Cross account.
Then choose the crypto you want to borrow, in this case it will be BUSD. The only thing you have to do is to sell it, to take a short position. Beware you have to repay your borrowed amount to close your position. If you are speculating that the BUSD price will be declining, you will pay less than the original amount you got from selling, resulting in making yourself a profit.
How to long Binance USD – BUSD?
Although it is not certain that price could deviate farther from its original 1-1 dollar base, as this could be a ‘temporary’ reaction by the market as a reaction to recent news of Paxos, the BUSD issuer.
If this is the case, you could fare well by buying as much as BUSD as you can at this discounted level. Paxos stated that redeeming BUSD is still open, so the question is: Is the panic justified? If you think this is a temporary overreaction, you could buy BUSD on Binance itself or on MEXC where prices have deviated just a little more.
The post SEC attacks Binance: De-pegging of BUSD? appeared first on YourCryptoLibrary.