Binance has been piling up problems since BUSD crashed

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Binance has had a troubled year in 2023, with multiple legal controversies rocking the exchange and network. Even as we enter the new year, many troubles continue.

attention BUSD dropped Gradually

On January 7, the market value of BUSD fell sharply, and the Binance stablecoin sector could not escape the disaster.

During this period, BUSD supply has dropped below 1 billion, a 95% decrease from the peak of 23.45 billion. As of this writing, BUSD is the sixth largest stablecoin, behind FDUSD, USDT, USDC, and DAI.

source: Tom Wan

The Current State of Binance Network

The result is a 66.4% decrease in online activity over the past week.

At the same time, network revenue fell 13.7% year-over-year, and user engagement and economic throughput showed worrying trends.

source:Token terminal

Legal challenges and price fluctuations Binance’s

More troubling for Binance is the complex legal story.

The U.S. Commodity Futures Trading Commission (CFTC) has reached a settlement with Binance CEO Changpeng Zhao (CZ), imposing a civil penalty of US$150 million on CZ and requiring Binance to pay US$1.35 billion in illegal fees.

Former chief compliance officer Samuel Lim faces a $1.5 million fine. The court also directed the establishment of corporate governance structures and strengthened legal oversight.

Despite regulatory hurdles and FUD, new projects are launching on Binance, showing the resilience of the ecosystem.

source: BNB chain

However, the market reaction for BNB remains unfavorable, trading at $299, down 1.4% in the past 24 hours. Transaction volumes have also declined recently.

As Binance grapples with these challenges, stablecoin stability, network interaction, and regulatory solutions will significantly impact its trajectory in 2024.