Binance CEO CZ rushed to Twitter to reassure users that the crypto exchange’s insurance funds had been topped off at $1 billion.
Binance CEO Changpeng “CZ” Zhao guaranteed his community of assurance of sufficient cash backing the network even as the liquidity crisis and acquisition of cryptocurrency exchange FTX continue. On the basis of “recent price fluctuations.” the exchange has once more topped its Secure Asset Fund for Users (SAFU), according to a tweet from CZ on November 9.
The tweet contained links to two reserve accounts, one of which contains links to Binance stablecoin (BUSD) and Binance Coin BNB ($300), the network’s native tokens, with a combined value of $700 million. The second wallet exposed $300 million worth of Bitcoin (BTC $17,425) assets. In order to back up user holdings in the event of an issue, 10% of the trading fee was allocated into a fund as part of Binance’s SAFU in 2018.
The fund reached $1 billion for the first time in February of this year. The majority of the responses to the tweet from the crypto community on Twitter were supportive, praising CZ for his deed. All cryptocurrency companies ought to establish a Secure Asset Fund for Users (SAFU), according to one user, similar to Binance. Others questioned if the cap on funds in the reserve was adequate:
These most recent tweets about the SAFU’s balance followed CZ’s promise on Twitter the day before for a Proof-of-Reserve mechanism to allow for a thorough disclosure of liquidity.
The exchange will implement a Proof-of-Reserve mechanism using Merkle Trees for “complete transparency” with the community, according to the CEO of Binance. Merkle Trees are a method for more effectively and securely encoding blockchain data. Transparency was used as the final term in the most recent CZ tweets that mentioned Binance’s SAFU.
This is one of the most recent developments in the days-long back-and-forth between FTX and Binance. CZ has been involved in the community continuously throughout the events. On November 8, he tweeted his key conclusions from what had happened up to that point, which included holding a sizable reserve and refraining from utilizing a native token as collateral within the same network.