The beloved BUSD stablecoin is taking its final bow. On Monday, Binance announced the start of the process to remove BUSD, their flagship stablecoin, from its trading platform. The news has dealt a blow to loyal users who have come to rely on the digital currency’s attractive combination of stability and usability. As the digital currency market evolves, it appears like BUSD will be left behind.
1. Say Goodbye to BUSD: Binance Ends Support of Popular Stablecoin
Popular crypto exchange Binance recently announced that it will be ending support for BUSD, one of the most traded stablecoins on the market. This news has sent shockwaves throughout the crypto community, as many have come to rely on the trust and stability of BUSD.
So what does the end of support for BUSD mean for crypto users? For starters, it’s time to say goodbye to the popular stablecoin. Crypto-savvy users will need to divest from BUSD and look for other stable coins to use for their trading or investments. Popular alternatives include USDT and BUSD, both of which have achieved similar levels of popularity:
- Tether (USDT) – A popular stablecoin backed by a reserve of assets offered on Ethereum, Bitcoin, EOS, and Tron.
- Binance USD (BUSD) -A new offering from Binance based on a U.S. dollar-backed Stablecoin.
You may also want to look at other “alt-coins” that serve as more stable investments. Examples include DAI and USDC.
- Dai (DAI) – Decentralized Stablecoin pegged to the US dollar.
- USD Coin (USDC) – A open-source, US dollar-backed Stablecoin available on the Ethereum and Stellar networks.
As the crypto market continues to evolve, investors must be aware of these new developments and make sure they’re making the best decisions for both their wallets and their peace of mind.
2. How Binance Is Rolling Out the Process of Deprecating BUSD
Phase 1: Notification
Binance has started rolling out the process of deprecating BUSD, beginning by informing users and partners that the platform would no longer support BUSD as a native token. This announcement was made via email and in-app notifications, as well as through the Binance official site and social media channels.
To help users transition away from the existing BUSD balances, Binance also provided resources like daily tokenswap guides, which allowed users to exchange their BUSD for another crypto like BNB or USDC. Additionally, Binance announced that users could also receive refunds in USDT if they did not wish to swap to any other crypto tokens.
Phase 2: Gradual Closure of BUSD Balances
In the follow-up to phase 1, Binance will slowly begin to phase out the BUSD token from its platform. This will be done in a multi-pronged approach which includes trading suspensions and the partial freezing of withdrawal services.
For starters, when the process of deprecation begins, BUSD spot and margin trading will be disabled permanently. Once BUSD trading has been suspended, users will no longer be able to deposit BUSD into their Binance account, and deposits already made to BUSD will be refunded in USDT. Finally, withdrawals of BUSD and BUSD-related tokens will be disabled, leaving users with USDT as their only withdrawal option.
3. Goodbye BUSD, Hello Goodbye — What Does the Deprecation Mean?
The long-anticipated deprecation of BUSD, the baseline stablecoin of the Ethereum network, is finally upon us. By December 2021, BUSD—as we know it—will be officially phased out of the network. This move may cause confusion and apprehension among BUSD holders, as the implications of the digital asset’s removal are not yet fully understood.
The answer lies, in part, in the introduction of new, more-efficient baseline stablecoins. Ethereum 2.0 will bring with it a reimagined suite of baseline coins for transacting on the network, including BUSD 2.0 and new tokens such as ETH-B and BUSD-E. BUSD 2.0 and ETH-B will be supported directly in the Ethereum Virtual Machine (EVM) on Ethereum 2.0, meaning transactions will be faster and easier than before. Furthermore, BUSD-E will be a pegged ERC20 token backed 1:1 by BUSD.
- BUSD 2.0—a new version of BUSD supported in the Ethereum Virtual Machine (EVM) on Ethereum 2.0
- ETH-B—a new, experimental token on Ethereum 2.0
- BUSD-E—a pegged ERC20 token backed 1:1 by BUSD
These new tokens represent an exciting overhaul of the way baseline stablecoins can be used to transact on Ethereum, and the deprecation of BUSD is expected to improve the overall user experience significantly. That being said, the transition period may be uneasy for BUSD holders. Fortunately, all BUSD tokens will continue to be supported until December 2021, at which point legacy BUSD tokens will be gradually phased out.
4. Finding Alternative Stablecoins as Binance Continues Goodbye Birdie
Since Binance announced its US users won’t have access to trading, the word of the savvy crypto trader has been “stablecoins”. As the market changes and investors look elsewhere, alternative stablecoins are gaining traction. With the best options for investment now scattered across various exchanges, transactions are less expensive and easier to complete than ever before.
In addition to the reliable Tether (USDT), here are a few other options to consider as you look to spread your crypto portfolio and decrease risk through diversification:
- DAI: A fully decentralized stablecoin, DAI is algorithmically stabilized, backed by Ethereum and growing in popularity.
- USDC: Fully backed by the US dollar and managed by Circle, USDC is the ideal choice for US citizens and those looking for a fast, low-cost crypto transaction.
- TrueUSD: A little-known name in the stablecoin scene, TrueUSD shows promise as a reliable alternative to USDT.
- PAX: Promoted by the Paxos Trust Company, PAX is naturally pegged to the US dollar and contains a number of legal agreements with banking and technology partners.
Whichever stablecoin you get behind, make sure you understand its process and the risks it carries. By researching each option, you can ensure your transactions are as successful as possible.
5. Final Goodbyes: The End of the Road for BUSD and Binance Users
After a long, successful partnership, it’s time to bid farewell to BUSD and Binance as long-time users. The end of the road has finally arrived and with it comes a bittersweet goodbye.
On this special occasion, users are encouraged to take a few moments to reflect on their journey with BUSD and Binance:
- Reliable Platforms: BUSD and Binance users have been able to trust their platforms due to their reliability and robust security protocols.
- High Quality Service: The high quality service and dedication from the customer support and development teams have been appreciated by users.
- Accessible Trading: Created in 2019, the wide range of trader tools and accessible trading methods, have allowed users to find their perfect way to trade.
The goodbye comes with a heavy heart, but also with the understanding that goodbyes can also remind us of good times and past memories.
The era of BUSD has come to an end, and Binance has begun its proposal to remove the stablecoin from its listing. As the saying goes, all good things must come to an end, and unfortunately, BUSD now joins the ranks of the latter. But, as with anything, with an ending comes a new beginning. Onwards and upwards, as Binance continues to make strides in the cryptocurrency world.
