Binance raises emergency insurance fund SAFU to $1 billion after BNB surge
Changpeng Zhao, the founder of Binance, popularly known as “CZ”, announced in a tweet this morning that the crypto exchange Binance has added $1 billion worth of various cryptocurrencies to its Secure Asset Fund for Users (SAFU).
“To adapt to recent price fluctuations, Binance has again increased its SAFU insurance fund to the equivalent of 1 billion USD,” Zhao tweeted.
SAFU is an emergency insurance fund established by Binance in July 2018 to protect users’ funds.
When the fund was established, Binance had set aside a certain percentage of trading fees to raise the fund to a sizable level to protect users. The value of the fund fluctuates according to the market and SAFU fund wallets consist of BNB, BUSD and BTC.
SAFU addresses hold over $700 million of Binance ecosystem token BNB and a stablecoin, Binance USD (BUSD). On the Bitcoin address, there is over $ 300 million in BTC.
Crypto markets have been shaken over the past 24 hours amid volatile market dynamics amid speculation surrounding the liquidity issues of leading exchange FTX.
Speculation surrounding the crypto exchange owned by Sam Bankman-Fried became so intense that the firm agreed to sell itself to its larger competitor, Binance, sparking panic among investors.
*Not investment advice.
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