As prices drop, crypto markets have been in tight spots. Many crypto assets move to the south without much or any break. Tension is increasing and the bears have become too aggressive.
Binance is attempting to sustain itself after the fluctuations. The exchange had previously announced that it would acquire the FTX in order to improve its liquidity.
Changpeng Zhao (CZ), Binance CEO, has been actively following the Binance FTX drama. Also, Changpeng Zhao (CZ), the CEO of Binance took to Twitter to share some information about the drama.
In the following: tweetCZ today revealed that his company received more funding for its insurance backing. The post states that Binance raised its Security Asset Fund for Users to $1 billion.
CZ reported that the move ensures the network’s safety against the market’s recent price fluctuation. The goal is to ensure users’ safety by continuing operation regardless of changes in the market.
Details Of Binance’s SAFU
Additionally, Binance’s CEO spoke out about details of two reserve accounts along with their links. The Binance coin (BNB token) and Binance stablecoins (BUSD), are both held in one of these accounts. It is estimated that the total account holds approximately $700 million. A second account holds Bitcoin (BTC), tokens valued at about $300 million.
A number of crypto-community members responded to his tweet by making their views known to him. Some applauded his initiative and unique leadership vision for the network’s security.
One user suggested that every crypto company should follow the example of Binance and have a Security Asset Fund for Users. However, some still question the fund’s reserve cap adequacy for users.
Binance SAFU launched in 2018 with an investment fund that was dedicated to supporting users during difficult times. The fund was also funded by 10% of the company’s trading fees. Gradually the fund grew and reached $1 billion in February 2012.
CZ Maintains Transparency in The Crypto Firm
The CEO of Binance has maintained a transparent position in handling almost all the firm’s events. CZ indicated that CZ would implement a Proof of Reserve system using Merkle Trees.
It is our goal to have complete transparency with the community. Merkle trees also enable encryption of Blockchain data using a faster and more secure method.
Hence, reactions on the sufficiency of Binance’s SAFU are emerging after CZ tweeted on the use of Proof-of-Reserve the previous day. He stated that this mechanism would give detailed information about liquidity to the network.
Pixabay featured Image, Charts from Tradingview