Volatility was evident all over the crypto market. Bitcoin [BTC] plunged to its two-year low of $17,484 yesterday. All the other assets endured a similar fate with the FTT token and Solana [SOL] leading the downward spiral. Amidst this, Binance decided to step up and make sure the exchange’s funds were “SAFU.”
In a recent tweet, Changpeng Zhao revealed that in order to adjust to the current fluctuations in price, the exchange had topped up the SAFU insurance. Secure Asset Fund for Users popularly known as SAFU is an emergency insurance fund that was put in place by Binance back in 2018. This was established to safeguard the users’ funds during extreme volatility.
Back in January this year, the exchange revealed that SAFU was worth about $1 billion. However, the turmoil caused in the market pushed this down to $735 million. Therefore, earlier today, the firm went on to top the balance to $1 billion. The wallets part of the initiative entails Binance’s BUSD and BNB along with Bitcoin [BTC].
Over $700 million is held by SAFU addresses in stablecoin Binance USD [BUSD] and Binance Coin [BNB]. In addition to this, about $300 million worth of BTC is stored at the Bitcoin address.
Elaborating on its latest more Binance wrote,
“We made a promise to our user base, along with the larger crypto ecosystem, that SAFU would always maintain a sizable level. We’ll continue to uphold that promise and continue to keep building. Besides protecting user interests’, SAFU’s definition encompasses three essential components towards mass adoption: trust, integrity, and transparency.“
Volatility struck the Crypto market
At press time, the global crypto market cap plummeted to a low of $893 billion following a 9.04 percent daily decrease. Bitcoin was trading for $18,098 with high chances of dropping to the $17K zone again as it was recording an 8.20 percent dip. Binance Coin, on the other hand, was down by 7.48 percent over the last 24 hours. The altcoin was trading for a low of $308.43.
With significant descents at play, Binance’s move to topping up the SAFU insurance fund was lauded by many.