In order to strengthen users’ confidence in the recent volatile market situation, Binance announced that it has added $1 billion to the Secure Asset Fund for Users (SAFU).
On November 9, Changpeng Zhao, tweeted: “In response to recent price movements, Binance has once again loaded the SAFU insurance fund equivalent to $1 billion in crypto, where $700 million is in BUSD and BNB, $300 million in BTC.” Changpeng Zhao also attached the address on the corresponding chain.
To adjust to recent price fluctuations, #Binance has topped up the #SAFU insurance fund to $1 billion USD equivalent again.BUSD AND BNB address about 700m: https://t.co/OMoB6HeR6rBTC address 300m: https://t.co/6kOJ1MZhMMTransparency. 1/2
— CZ Binance (@cz_binance) November 9, 2022
The Secure Asset Fund for Users (SAFU) is an emergency insurance fund that was established by Binance in July 2018 to protect users’ funds. When the fund was established, this company committed a percentage of trading fees in order to grow it to a sizable level to safeguard users.
The Secure Asset Fund was valued at $1 billion based on the opening price on January 29, 2022. The value of the fund will fluctuate based on the market.
The announcement came as the market was panicking with the liquidity crisis of the 2nd largest exchange FTX. This further contributes to strengthening its strong position as well as building users’ trust in Binance.