Binance CEO Raises SAFU Again to $1 Billion. Changpeng Zhao (CZ), CEO of Binance, the world’s largest cryptocurrency exchange, said that after the recent events, they reduced the reserve fund to $1 billion to prevent overdrafts. allowed chaos.
With the decline of the cryptocurrency market, the $1 billion Safe Asset Fund (SAFU) created by Binance for users lost its value. To provide relief to users who are worried about the issue of balance and subsequent destruction of the cryptocurrency exchange FTX, CZ announced that it increased this amount again to the level of $ 1 billion.
Binance CEO CZ said in a statement that they have $1 billion of insurance money on hand in case of a possible crisis in the assets of the investors. Cryptocurrencies created by Binance include BUSD (Binance USD), Binance Coin (BNB), and Bitcoin (BTC). The hedge fund has $700 million of BUSD and BNB, and $300 million of Bitcoin. According to data from The Block, Binance added a total of $ 215 million in liquidity, including 194,500 BNB ($ 62 million) and 8,325 Bitcoin ($ 153 million), to restore the expired funds in the position of $ 1 billion.
This money, which is set aside to protect against price fluctuations and to provide financing in times of crisis, is kept as a source that does not depend on the wallets or assets of exchange operators. Said insurance funds continue to receive income from a certain percentage of the employer’s business expenses. The value of the fund changes smoothly depending on market conditions.