The crypto industry sees new changes happening every day. Let us take FTX for example. The company which was one the second largest exchange collapsed within a few days and dropped down to bankruptcy. Very recently, we saw the Silicon Valley Bank also meet a similar fate. Silicon Valley Bank became the world’s biggest bank to fail ever since the 2008 recession.
The downfall of SVB led to a major impact on the industry as well as stablecoins. Prices of USDC dropped, and fear plagued the market that the coin could go to zero. If this happened, things would look very bad for the entire industry and its stability.
However, to bring some light of hope in the bleak time, CZ, the CEO of Binance, took to Twitter to make an announcement.
Given the changes in stable coins and banks, #Binance will convert the remaining of the $1 billion Industry Recovery Initiative funds from BUSD to native crypto, including #BTC, #BNB and ETH. Some fund movements will occur on-chain. Transparency.
— CZ
Binance (@cz_binance) March 13, 2023
He informed us that his exchange Binance will take the charge of converting the left out Industry Recovery Initiative funds. The conversion will be done from BUSD to native coins like BNB, BTC and ETH. These Industry Recovery Initiative funds are worth around 1 billion dollars. The address given by him can be viewed with this link: https://t.co/uSy1DlZCyG
BitLab Academy, which is trying to make crypto users more aware and dedicated, also tweeted their opinion on how it was the last banking crisis, which took place in 2008, that gave birth to Bitcoin. They said that now that another banking crisis has hit the market, BTC could be the answer for worried users looking for a “durable asset in place as an alternative (hedge) to the traditional banking system.
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CZ also added that “Some fund movements will occur on-chain”, in order to give users more details of the transactions.
There is a lot of Fear, uncertainty and doubt running in the industry, which in addition to the misinformation and bear trends has become a point of frustration for crypto users. However, steps like this highlight the entire essence of what crypto was meant to be and help towards bettering the industry. This move by Binance has ensured that a high level of transparency is maintained for the users and a standard has now been set for the entire world.