Etini
Valued Contributor
It is no longer news that the BUSD token, a promising stable coin has been discontinued. However, if one followed the issues that surrounded BUSD closely, such a person need not be shocked that BUSD was stopped. Below are three factors that led to it closing down.
1) There was so much uncertainty about the true assets that backed BUSD. There was no clear disclosure of how the asset was backed and this made it difficult to peg it's dollar value at 1:1. This made crypto enthusiasts skeptical about the token.
2) BUSD having a central issuer also damaged the morale of people in crypto about it. People feared it could be easily manipulated and that made them not to even give BUSD a look in.
3) BUSD faced competition from newer stable coins that had gotten their framework right. And the people in crypto had to ditch BUSD for these newer tokens.
1) There was so much uncertainty about the true assets that backed BUSD. There was no clear disclosure of how the asset was backed and this made it difficult to peg it's dollar value at 1:1. This made crypto enthusiasts skeptical about the token.
2) BUSD having a central issuer also damaged the morale of people in crypto about it. People feared it could be easily manipulated and that made them not to even give BUSD a look in.
3) BUSD faced competition from newer stable coins that had gotten their framework right. And the people in crypto had to ditch BUSD for these newer tokens.
