Binance's CZ Says 'FUD Is Temporary' As BNB Drops 8% On $2.8M Short-Sale
Binance CEO Changpeng Zhao reiterated that "FUD is temporary" on Monday evening after the New York Department of Financial Services issued an order requiring Paxos to cease minting new Binance USD tokens (CRYPTO: BUSD).
What Happened: As a result, Binance Coin (CRYPTO: BNB) took a plunge dropping 8% to $290 in the last 24 hours.
FUD is temporary. pic.twitter.com/O2ntcjn2HJ
— CZ 🔶 Binance (@cz_binance) February 14, 2023
Data from CoinGlass shows that $2.8 million worth of BNB has been liquidated in the last 24 hours.
The native token of Binance is currently being shorted on Binance and other exchanges, and it's currently seeing its most negative crowd sentiment week since July 2021, data from Santiment shows.
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BUSD's price, which is designed to hover around $1 at all times, has also been very mildly de-pegged.
According to insights from Santiment, the spike in BUSD's supply on exchanges has brought its current ratio, 58.9%, back to its highest level since Dec. 22. These kinds of moves are typically only made when there is an intention for the crowd to dump the asset.
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