SOL - Why Polkadot Solana Cardano and BNB Crashed on Monday
Cryptocurrencies are starting the week on the wrong foot as U.S. regulators execute a continued effort to stop the industry. Last week, the Securities and Exchange Commission (SEC) shut down exchange Kraken's staking services. And today, there was news that the New York Department of Financial Services ordered Paxos to stop minting BUSD stablecoins that track the U.S. dollar.
The hardest hit today were tokens that either could come under pressure from staking regulations or other forms of regulator pressure . In the last 24 hours, as of 2:30 p.m. ET, Polkadot (CRYPTO: DOT) is down 5.4%, Cardano (CRYPTO: ADA) has fallen 5%, Solana (CRYPTO: SOL) dropped 7.5%, and BNB (CRYPTO: BNB) is down 10.1%.
The drop in BNB comes as its stablecoin (BUSD) issuer, Paxos, was ordered to stop minting new tokens. This could cripple its stablecoin efforts and comes after its auditing partner, Mazars, cut ties with the company in December and withdrew a proof-of-reserves report. Given FTX's recent collapse, investors have to be wondering whether Binance could have similar systemic risks that we can't see right now.
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Why Polkadot, Solana, Cardano, and BNB Crashed on Monday