Crypto

Binance Insurance Fund 44% Backed by its Token – CryptoPotato

 

A large chunk of Binance’s emergency insurance fund – 44% – is made up of the crypto exchange’s own BNB tokens, a report by CryptoPotato says, which cited a tweet by on-chain analyst Willy Woo saying the Secure Asset Fund for Users (SAFU) includes $367 million worth of BNB, while the remainder is $300 million of Binance’s dollar-pegged stablecoin BUSD  and $270 million of Bitcoin.

“While I commend Binance for having such a fund, there’s no sense putting incidence-correlated BNB in there,” Woo said, “How would we feel about FTX having an insurance fund filled with FTT?”, but the report noted that Binance “plans to implement a proof of reserves system verifying its total exchange assets as well.”

Read the full report: CryptoPotato.

 

ALSO SEE:

 

Binance CEO Calls for Clearer Rules to Stabilise ‘Crazy’ Sector

 

FTX Hit by ‘Rogue’ $515m Crypto Outflows After Collapse

 

Crypto Markets Shaken After Binance Abandons FTX Bailout

 

 

 

Jim Pollard

Jim Pollard is an Australian journalist based in Thailand since 1999. He worked for News Ltd papers in Sydney, Perth, London and Melbourne before travelling through SE Asia in the late 90s. He was a senior editor at The Nation for 17+ years and has a family in Bangkok.

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