Binance’s stablecoin BUSD hasn’t always been 1:1 backed, report
Many believe that Binance would follow-through on its promise to keep its stablecoin BUSD backed 1:1 to $1. It hasn’t always.
Cryptocurrency news by Protos · Protos
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Show Notes
Binance has previously undercollateralized its stablecoin, BUSD, on its own blockchain, according to on-chain data revealing that the wallet backing the BUSD bridged from Ethereum’s blockchain onto Binance’s blockchain did not consistently equal one dollar’s worth of assets for each Binance-pegged BUSD.
Investigative reporter Jonathan Reiter of Data Finnovation collaborated with Patrick Tan of Novum Alpha to initially publicize the shortfall. Reiter has published five scholarly articles and specializes in stablecoin research. Both firms are based in Singapore. Their joint analysis shows insufficient backing of BUSD trading on BNB Chain for several months.
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