Why did binance coin's price go down today? Trouble brews for stablecoin BUSD

Binance coin ( BNB-USD ), the native token of cryptocurrency exchange Binance, dropped as much as 11.1% on Monday, breaching $300 psychological support for the first time since end-January, after New York's financial regulator ordered Paxos Trust Company to stop issuing stablecoin BUSD ( BUSD-USD ). The New York Department of Financial Services reportedly said Paxos failed to safely issue BUSD ( BUSD-USD ) to "prevent bad actors from using the platform." The news drove crypto prices down further during the session despite a broader risk-on day in the stock market. As a result of the BUSD-Paxos development, the market cap of BUSD, currently standing at $15.87B, "will only decrease over time," Changpeng Zhao, Binance's co-founder and CEO, said in a series of Twitter posts . "Binance will continue to support BUSD for the foreseeable future," he added. "We do foresee users migrating to other stablecoins over time. And we will make product adjustments accordingly. eg, move away from using BUSD as the main pair for trading, etc." Earlier, crypto funds posted weekly outflows as unexpectedly strong macro data spooked investors .