Binance Tops Up Emergency Insurance Fund 'SAFU' to $1B After BNB Volatility
Crypto exchange Binance has topped up its Secure Asset Fund for Users (SAFU) to an equivalent of $1 billion worth of various cryptocurrencies, founder Changpeng Zhao, popularly known as "CZ," confirmed in a tweet this morning.
"To adjust to recent price fluctuations, #Binance has topped up the #SAFU insurance fund to $1 billion USD equivalent again," Zhao tweeted.
SAFU is an emergency insurance fund that was established by Binance in July 2018 to protect users' funds. When the fund was established, Binance committed a percentage of trading fees to grow it to a sizable level to safeguard users. The fund's value fluctuates based on the market and SAFU fund wallets comprise BNB, BUSD, and BTC.
Crypto markets whipsawed in the past 24 hours amid volatile market dynamics due to speculations surrounding prominent exchange FTX's liquidity issues. Speculation surrounding the Sam Bankman-Fried’s owned crypto exchange grew so intense that the firm agreed to sell itself to bigger rival Binance - sparking panic among traders.