Last month, Ethereum (ETH) and Binance USD (BUSD) experienced the negative impact of financial regulators in crypto. While Binance USD (BUSD) lost about 43% of its market cap value, Ethereum (ETH) appeared unaffected after a decrease of 7.63%.
Moreover, Collateral Network (COLT), a new decentralized crowdlending platform, is set to reward users with a 3500% gain.
Binance USD (BUSD)
Binance USD (BUSD) is the native stablecoin of the Binance Exchange. However, it is not minted by the exchange but by Paxos, a blockchain platform that digitizes and mobilizes assets. Also, Binance USD (BUSD) is regulated, and it is pegged to the U.S. dollar.
Following a report by NEWSBTC, the U.S. Securities and Exchange Commission (SEC) issued a Wells Notice to Paxos in February, stating its ongoing deliberation to file a lawsuit against the blockchain infrastructure company for issuing the Binance USD (BUSD) token, which the commission considers unregistered security.
This led Binance to convert over 800 million Binance USD (BUSD) from its Recovery Fund to other cryptocurrencies. Also, Binance USD (BUSD) lost about 43% of its market cap value. Right now, a value of Binance USD (BUSD) is worth $0.9999.
Ethereum (ETH)
Ethereum (ETH), the most utilized smart-contract platform and the second largest cryptocurrency by market cap, also had its share of the SEC attack last month. Ethereum (ETH) was labeled security when the office of the New York Attorney General issued a lawsuit against KuCoin.
The lawsuit claims that $ETH is security because users can earn financial rewards by holding the cryptocurrency since the Ethereum (ETH) blockchain now operates a proof-of-stake consensus. This news contributed to a brief crash in the market, sending the global crypto market cap down by 7.63% in 24 hours.
Nevertheless, investors are still pumped about Ethereum (ETH), especially with the Ethereum Shanghai Upgrade in view. Also, the coin has remained on an upward trend, and a unit of Ethereum (ETH) currently goes for $1,858.04. Pretty expensive, right? Then check out the next project.
Collateral Network (COLT)
Collateral Network (COLT) is a Web3 peer-to-peer crowdlending platform that enables individuals to borrow cryptocurrencies against physical assets. Collateral Network (COLT) is also the first decentralized lending protocol that allows using real-world assets on the Ethereum (ETH) blockchain.
Collateral Network (COLT) achieves its goal by minting NFTs to represent borrowers’ physical assets like real estate, fine art, vintage cars, gold, etc. Then the NFTs are fractionalized and sold to community members. That way, borrowers receive the funds they need from a collection of lenders.
Collateral Network (COLT) locks the physical assets in a secured vault to prevent losses. When borrowers repay their loans, the NFTs are burned, and their assets are returned. As a result, lenders gain from fixed interest rates. All information about loan transactions is stored on the public blockchain.
COLT is the native token of the Collateral Network. COLT holders enjoy benefits across the platform like staking bonuses, governance rights, and more. Interested investors can purchase the Collateral Network (COLT) token in the ongoing presale for $0.014, up already by 40% from its initial price and expect a 3500% return on their purchase. Holders can enjoy a 40% deposit bonus during the presale currently, further driving the demand to new highs.
Find out more about the Collateral Network presale here:
Website: https://www.collateralnetwork.io/
Presale: https://app.collateralnetwork.io/register
Telegram: https://t.me/collateralnwk
Twitter: https://twitter.com/Collateralnwk