LQTY, the native token of censorship-resistant decentralized stablecoin lender Liquidity, surged Monday after the NYDFS ordered Paxos to cease minting BUSD. The token rose 45% to a six-month excessive of $1.07, registering its largest single-day share acquire in no less than a 12 months, per knowledge from TradingView. The rally probably stemmed from the Paxos-BUSD drama that triggered fears of a regulatory crackdown on the broader centralized stablecoin ecosystem, with some questioning if Circle’s USDC is likely to be subsequent. In that case, the case for decentralized and censorship-resistant stablecoins like Liquity’s LUSD turns into clearer.
