Following the Bitcoin price plunge, which wiped out over a billion dollars from the cryptocurrency market, Binance is recovering. The Singapore exchange has announced that it has increased the Emergency Insurance Fund (SAFU) to $1 Billion or 43% of the total crypto value locked in futures trading. The move comes after a momentary loss of $250,000 worth of Bitcoin stolen by hackers. “In the event where Binance cannot cover all losses, our SAFU fund will cover the shortfall”, stated the exchange, which has been around since July 2017. The fund is underwritten by the fees generated from trading on their platform.
What Happened?
Following the Bitcoin price plunge, which wiped out over a billion dollars from the cryptocurrency market, Binance is recovering.
In a recent announcement, Changpeng Zhao, CEO of Binance, said it would increase its Insurance Fund to $1 billion to cover any future losses from hackers or other attacks. The move comes after a momentary loss of $250,000 worth of Bitcoin stolen by hackers earlier this month.
The news was welcomed by traders who were worried about their funds being stolen by hackers and immediately sold their coins for other cryptocurrencies such as Ethereum or Litecoin—which are less susceptible to hacking attacks than Bitcoin because they don’t use blockchain technology as BTC does
Volatility Solution
Binance has proved to be the world’s largest cryptocurrency exchange. It has announced that it has increased its emergency insurance fund (SAFU) to $1 billion, or 43% of the total crypto value locked in futures trading.
This announcement comes after a recent decline in Bitcoin prices and an increase in volatility on Binance, which saw BTC drop below $4000 for the first time since December 2018. The Singapore-based exchange has already been planning on increasing its SAFU fund multiple times over the past year as it grows to be one of the biggest exchanges globally.
The move comes after a momentary loss of $250,000 worth of Bitcoin stolen by hackers.
Binance has increased its emergency insurance fund (SAFU) to $1 billion after a momentary loss of $250,000 worth of Bitcoin stolen by hackers.
The move comes after a momentary loss of $250,000 worth of Bitcoin stolen by hackers.
Binance has been around since July 2017. It has proven to be a secure cryptocurrency exchange. The recent increase in BNB price shows that it can handle risk control and market volatility well.
Plans For The Future
“In the event where Binance cannot cover all losses, our SAFU fund will be used to cover the shortfall”, stated the exchange, which has been around since July 2017.
In a recent statement, Binance said it would increase the emergency insurance fund (SAFU) to $1 billion. The crypto exchange has been around since July 2017 and currently manages over 40% of the total crypto value locked in futures trading.
The move comes after the platform experienced significant volatility last week following an announcement by regulators in Japan about a new bill that would require exchanges to register with them as a financial service provider. In addition, there were also concerns surrounding potential future restrictions on cryptocurrency trading in India.
Binance’s decision to increase their SAFU fund was announced by Changpang Zhao (CZ), CEO at Binance, via Twitter: “In the event where Binance cannot cover all losses, our SAFU fund will be used to cover the shortfall.”
Binance SAFU is Promising
Binance has demonstrated that it can handle market volatility and risk control. Increasing the SAFU reserves to $1 billion will help protect Binance’s customers in case of losses.
Binance has over $1 billion worth of daily transactions. Although exchanges are often targets for hackers, Binance is known for its security record, making it a safe place to trade cryptocurrencies such as Bitcoin and Ethereum. In addition to daily trade volume, Binance also offers a variety of other benefits, including low fees (0.10% per transaction), fast withdrawal times (within 5 minutes), high liquidity support, multiple language support and much more!
Conclusion
The increase in the SAFU fund shows that Binance is prepared for any market volatility and has the necessary infrastructure to handle any hacking attempts. This move will help put investors’ minds at ease when using this exchange platform.
