Mischa ‘Cannoli’ Boar, the chair member of the Dogecoin Foundation, took to Twitter to express his concerns regarding the recent Binance USD (BUSD) controversy. The worried crypto whale explained in a long thread that, despite Changpeng Zhao downplaying the role of BUSD in the Binance Ecosystem, it ‘de facto’ is the official stablecoin of the leading CeFi crypto platform.
Not Your Keys, Not Your DOGE?
In fact, the concerning message from member of the Dogecoin Foundation Mischa Boar is inspired by the latest events, putting a dark cloud on Paxos-issued Binance USD (BUSD), as Gary ‘Top Cop’ Gensler and the SEC launched a probe into the popular stablecoin.
On January 13th, 2023, the New York State Department of Financial Services legally ordered to seize all production of BUSD, which is likely to gradually decrease the enormous market cap of the stablecoin. However, Binance Boss Changpeng ‘CZ’ Zhao assured that all current Binance USD (BUSD) assets are backed 1:1, and the issuer Paxos agreed on that at least till 2024.
Going into further detail in his Twitter thread, Mischa ‘Cannoli’ Boar repeatedly wrote, “never invest in stablecoins long-term,” arguing that as a long-term investment, it might bring additional layers of risk, for instance, issuer company liquidation and changing regulations.
Last but not least, the intense monologue by Mr. Boar ended with the catchphrase “not your keys – not your DOGE” and even urged his followers to withdraw the funds held in CeFi.
Trust in CeFi has plunged since FTX, once the second-largest crypto exchange in the world, was shredded to pieces due to Sam Bankman Fried’s backdoor shenanigans. Ever since then, all the leading centralized crypto platforms have been under the magnifying glass of investors and analysts.
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