Because the liquidity crisis and purchase of cryptocurrency exchange FTX continues, Binance Chief executive officer Changpeng “CZ” Zhao assured his community of insurance of sufficient funds backing the network.
Inside a tweet on November. 9, CZ stated the exchange has once more capped its Secure Asset Fund for Users (SAFU) at $1 billion equivalent considering “recent cost fluctuations.”
To sit in recent cost fluctuations, #Binance has capped in the #SAFU insurance fund to $1 billion USD equivalent again.
BUSD AND BNB address about 700m: https://t.co/OMoB6HeR6r
BTC address 300m: https://t.co/6kOJ1MZhMM
Transparency. 1/2
— CZ Binance (@cz_binance) November 9, 2022
The tweet incorporated links to 2 reserve accounts, one of these holds both Binance stablecoin (BUSD) and also the native token from the network Binance Gold coin (BNB) by having an equivalent price of $700 million.
Another wallet revealed Bitcoin (BTC) holdings worth around $300 million.
Binance’s SAFU started in 2018 by allocating 10% from the buying and selling fee right into a fund that’s exclusively focused on copying user holdings within the situation of the incident. In Feb of the year, the fund hit $1 billion the very first time.
The crypto community on Twitter taken care of immediately the tweet with mostly positive reactions, applauding CZ for his action. One user stated “all cryptocurrency firms must have a safe and secure Asset Fund for Users (SAFU) much like Binance.”
While some had questions regarding the sufficiency from the cap for funds within the reserve:
Does #Binance keep under $1 Bil in users funds in hit wallets?
Will be there any scenario where Binance needs greater than the $1B?
— Crypto King (@Cryptoking) November 9, 2022
These recent tweets concerning the balance from the SAFU, came after CZ promised on Twitter yesterday for any Proof-of-Reserve mechanism for any detailed disclosure of liquidity.
The Binance Chief executive officer stated the exchange will deploy an evidence-of-Reserve system that will utilize Merkle Trees for “full transparency” using the community. Merkle Trees really are a mechanism for encoding blockchain data inside a more effective and secure manner.
The newest CZ tweets talking about Binance’s SAFU also ended using the one-word sentence: “transparency.”
Related: Binance’s FTX acquisition viewed as chess move by crypto community
This is among the latest moves within the back-and-forth between FTX and Binance, that has unfolded during the last couple of days.
CZ continues to be active inside the community throughout the whole from the occasions. On November. 8, he tweeted his major takeaways from what’s transpired so far, which incorporated not utilizing a native token as collateral inside the same network and keeping a sizable reserve.
