Binance allocates an additional $1 billion for its customer support fund
A number of well-known cryptocurrency businesses, including Aptos Labs and Jump Crypto, reportedly joined the exchange’s initiative to restructure the sector.
This article has been updated to reflect that the financing was for Binance’s customer assistance fund (Nov. 28, 12:15 UTC). On November 25, CEO Changpeng Zhao stated that the money will go toward the company’s industry rehabilitation program.
Just days after topping it up to $1 billion after its value dropped due to the decline in the cryptocurrency market, crypto exchange Binance allocated an additional $1 billion to its Secure Asset Fund for Users (SAFU). In order to safeguard users’ money, the emergency insurance pot was established in 2018.
After tweeting on Friday that funds had been allocated to the exchange’s industry recovery initiative, which aims to consider investment opportunities as a result of the failure of companies like Three Arrows Capital, Celsius, and FTX, Binance CEO Changpeng “CZ” Zhao confirmed the expansion in an email to CoinDesk.
In addition, Aptos Labs and Jump Crypto joined the industry effort and would each donate $50 million to the fund, according to Binance.
The sector would be supported and troubled crypto assets would be purchased using the recovery fund. Since the beginning of the year, the cryptocurrency market has seen a sharp downturn, which has caused a number of crypto enterprises to close their doors.
With bitcoin (BTC) trading 1.6% lower throughout the day and sitting around $16,400 at the time of writing, the cryptocurrency market is still under pressure.
About Binance
Binance is a cryptocurrency exchange which is the largest exchange in the world in terms of daily trading volume of cryptocurrencies. It was founded in 2017 and is registered in the Cayman Islands. Binance was founded by Changpeng Zhao, a developer who had previously created high frequency trading software.
