If Binance fails you can still redeem your BUSD for USD - but there is a catch!!!

All Cryptocurrencies

by COINS NEWS 10 Views

Lets put ourselves in a very dark scenario:

1)You have BUSD either on CEX or in self custody

2)For whatever reason binance dies

3)BUSD is backed by PAXOS hence no problemo Imma swap it for USD ezpz... or can you?

Well... yes but only certain type of BUSD

So...

BUSD is issued by PAXOS, regulated by NYDFS and holds USD 1:1 in FDIC insured banks or US treasury bills. BUSD is also one of the few stable cryptocurrencies that provide monthly audited reports of its reserves.

HOWEVER...

You can redeem your BUSD for USD at any time ONLY IF YOU HOLD ON ETHEREUM!

Key part

"Binance wraps BUSD and issues separate tokens (known as Binance-Peg BUSD) on several blockchains, including BNB Smart Chain, Polygon, and Avalanche. These tokens are unaffiliated with Paxos and not regulated by the NYDFS."

https://paxos.com/busd-transparency/

Not saying Binance will or is even likely to fail but you have to be prepared for the worst! Make sure not to hold BUSD as wrapped token or on any other chain that is not Ethereum.

Stay safe :)

submitted by /u/Chysce
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