1 year ago
Binance CEO CZ took to Twitter to guarantee users that the crypto exchange's security funds person been topped disconnected astatine $1 cardinal arsenic the debacle with FTX rages on.
As the liquidity situation and acquisition of cryptocurrency speech FTX continues, Binance CEO Changpeng “CZ” Zhao assured his assemblage of security of capable funds backing the network.
In a tweet connected Nov. 9, CZ said that the speech has erstwhile again topped its Secure Asset Fund for Users (SAFU) astatine $1 cardinal equivalent successful airy of “recent terms fluctuations.”
— CZ Binance (@cz_binance) November 9, 2022The tweet included links to 2 reserve accounts, 1 of which holds some the Binance stablecoin (BUSD) and the autochthonal token of the web Binance Coin (BNB) with an equivalent worthy of $700 million.
The different wallet revealed Bitcoin (BTC) holdings worthy astir $300 million.
Binance’s SAFU began successful 2018 by allocating 10% of the trading interest into a money that is solely dedicated to backing up idiosyncratic holdings successful the lawsuit of an incident. In February of this year, the money deed $1 cardinal for the archetypal time.
The crypto assemblage connected Twitter responded to the tweet with mostly affirmative reactions, applauding CZ for his action. One idiosyncratic said “all cryptocurrency firms should person a Secure Asset Fund for Users (SAFU) conscionable similar Binance.”
While others had questions astir the sufficiency of the headdress for funds successful the reserve:
Does #Binance support little than $1 Bil successful users funds successful deed wallets?
Could determination beryllium immoderate script wherever Binance needs much than the $1B?
These caller tweets regarding the equilibrium of the SAFU, came aft CZ pledged connected Twitter the time before for a Proof-of-Reserve mechanics for a elaborate disclosure of liquidity.
The Binance CEO said the speech volition deploy a Proof-of-Reserve strategy which volition utilize Merkle Trees for “full transparency” with the community. Merkle Trees are a mechanics for encoding blockchain information successful a much businesslike and unafraid manner.
The astir caller CZ tweets referring to Binance’s SAFU besides ended with the one-word sentence: “transparency."
Related: Binance's FTX acquisition seen arsenic chess determination by crypto community
This is 1 of the latest moves successful the back-and-forth betwixt FTX and Binance, which has unfolded implicit the past fewer days.
CZ has been progressive wrong the assemblage during the entirety of the events. On Nov. 8, helium tweeted his large takeaways from what has transpired frankincense far, which included not utilizing a autochthonal token arsenic collateral wrong the aforesaid web and keeping a ample reserve.
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