{"id":46557,"date":"2023-03-13T06:04:05","date_gmt":"2023-03-13T10:04:05","guid":{"rendered":"https:\/\/coinscreed.com\/staging\/?p=46557"},"modified":"2023-03-13T06:04:08","modified_gmt":"2023-03-13T10:04:08","slug":"binance-to-convert-recovery-funds-from-busd-to-native-crypto","status":"publish","type":"post","link":"https:\/\/coinscreed.com\/staging\/binance-to-convert-recovery-funds-from-busd-to-native-crypto\/","title":{"rendered":"Binance to convert recovery funds from\u00a0BUSD to ‘native crypto’"},"content":{"rendered":"\n

Binance CEO, CZ, announced that due to recent \u201cchanges\u201d in stablecoins and banks, the company\u2019s recovery fund will be converted from Binance USD<\/a> (BUSD) to \u201cnative cryptos” such as BTC.<\/p>\n\n\n\n

\"Binance
Binance to convert recovery funds from BUSD to ‘native crypto'<\/figcaption><\/figure>\n\n\n\n

The bankruptcy of Silicon Valley Bank (SVB), Silvergate Bank<\/a>, and Signature Bank, three significant crypto-backing institutions, caused the stablecoin USDC to drop from its $1 benchmark to as low as $0.87.<\/p>\n\n\n\n

On March 13, Binance CEO and co-founder Changpeng (CZ) Zhao tweeted that the company will convert the final $1 billion of its Industry Recovery Initiative funds into “native crypto” due to “changes in stablecoins and banks” as a result of the growing worry about stablecoins.<\/p>\n\n\n\n

\n

Given the changes in stable coins and banks, #Binance\r\n \r\n \r\n \r\n <\/g>\r\n \r\n \r\n \r\n <\/clipPath>\r\n <\/defs><\/svg><\/span><\/a> will convert the remaining of the $1 billion Industry Recovery Initiative funds from BUSD to native crypto, including #BTC<\/use><\/svg><\/span><\/a>, #BNB<\/use><\/svg><\/span><\/a> and ETH. Some fund movements will occur on-chain. Transparency.<\/p>— CZ \ud83d\udd36 BNB (@cz_binance) March 13, 2023<\/use><\/svg><\/span><\/a><\/blockquote>

Among the native cryptocurrencies listed by CZ were Ethereum, Binance Coin, and Bitcoin. Next, he tweeted links to the transaction hash IDs for the BTC and the ETC, noting that it took 15 seconds and $1.98 for $980 million to move.<\/p>\n\n\n\n

The crypto community on Twitter reacted to the decision by the co-founder of Binance in different ways. Some applauded the choice, referring to it as “pure gold,” and suggested using alternative currencies to anchor stablecoins:<\/p>\n\n\n\n

\n

This move is pure gold. Crypto power.

\ud83e\udd14 – How about diversifying into stables other than pegged to USD?

For now allow major global currencies and maybe integrate with CBDCs to allow seamless integration in the future.

It will help in reaching out to a huge unbanked users.<\/p>— Vipul Cypherpunk (@vipul19) March 13, 2023<\/use><\/svg><\/span><\/a><\/blockquote>

After selling it, others questioned the decision to convert BUSD, which is meant to be a stablecoin<\/a>, into more “volatile” assets.<\/p>\n\n\n\n

The business behind USDC, Circle, reported on March 10 that the original de-pegging incident was the result of Circle having around $3.3 billion tethered to the failed SVB. The USDC, however, had returned to its $1 peg on March 13 and was now hovering at $0.99.<\/p>\n\n\n\n

It is known that Circle also has an unspecified amount of reserve funds locked up in Silvergate, another recently insolvent cryptocurrency-friendly institution based in the United States.<\/p>\n\n\n\n

Other stablecoins like DAI, USDD, and FRAX all retreated from their $1 position due to the uncertainty surrounding USDC.<\/p>\n\n\n\n

The whole cryptocurrency industry<\/use><\/svg><\/span><\/a> has been on edge as to what would happen next since the events started to take place on March 10. There is “nobody left to bank crypto firms,” according to users in the Twitter community.<\/p>\n","protected":false},"excerpt":{"rendered":"

Binance CEO, CZ, announced that due to recent \u201cchanges\u201d in stablecoins and banks, the company\u2019s recovery fund will be converted from Binance USD (BUSD) to \u201cnative cryptos” such as BTC. The bankruptcy of Silicon Valley Bank (SVB), Silvergate Bank, and Signature Bank, three significant crypto-backing institutions, caused the stablecoin USDC to drop from its $1 […]<\/p>\n","protected":false},"author":12,"featured_media":35241,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[834],"tags":[326,149,1970,13733],"class_list":["post-46557","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-binance","tag-binance","tag-btc","tag-busd","tag-native-crypto"],"jetpack_featured_media_url":"https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2022\/09\/image-27.png","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/46557","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/users\/12"}],"replies":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/comments?post=46557"}],"version-history":[{"count":0,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/46557\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media\/35241"}],"wp:attachment":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media?parent=46557"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/categories?post=46557"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/tags?post=46557"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}