Binance Increases Emergency Funding To Secure Users

Binance put more than $700 million into the SAFU crisis security monetary fund in response to concerns about BNB volatility in order to protect the finances. The most significant crypto trading platform in the world, Binance, has added one billion dollars of assorted crypto-assets to its User Safe Asset Fund (SAFU) in reaction to the rising marketplace unpredictability. The platform’s founders tweeted about their latest move. 

The safety funding levels

Binance secured the finances by adding more than $700 million in different tokens to addresses related to tokens, claims Zhao Changpeng, also known as “CZ,” a well-known crypto expert at Binance. In order to safeguard user finances, Binance established the User Safe Asset Fund (SAFU Fund) in July 2018.

Since the beginning of the foundation, Binance has made a commitment to protecting its users by significantly raising the portion of transaction fees. Depending on the market, the fund’s value changes. Additionally, BNB, BUSD, and BTC will be included in the SAFU Fund wallet. The Safe Asset Fund had a starting value of $1 billion as of January 29, 2022

Around $1 billion is held in total by SAFU accounts. Binance gives its users’ money security in dire circumstances with the SAFU Emergency Insurance Fund. The wallet addresses where money is kept are viewable by users. In a crisis of volatility, Binance defends user assets.

One of the most recent moves in an exchange that has been taking place among FTX and Binance in recent days is the buildup of the SAFU fund. Due to rumors of liquidity problems on the well-known FTX exchange as a consequence of stresses in the 2 marketplace top companies, the cryptocurrency marketplace has declined over the past day. 

Cause of the panic

Trading panic ensued when the FTX cryptocurrency exchange, the subject of intense speculation, was decided to be sold to bigger rival Binance. Yesterday, the price of BTC fell beneath $17,000 and has since proceeded to decline. Binance uses the SAFU Fund as a means of safeguarding clients’ assets in a market that is contracting.

The crypto community on Twitter applauded CZ’s actions and responded to the tweet largely favorably. Others, however, question whether the reserve cap is adequate.

Leave a Reply

Your email address will not be published. Required fields are marked *