In a recent tweet, the CEO of Binance, Changpeng Zhao, announced that the remaining $1 billion Industry Recovery Initiative funds from BUSD (Binance USD) would be converted to native crypto, including Bitcoin (BTC), Binance Coin (BNB), and Ethereum (ETH).
The move comes as a response to recent changes in stablecoins and banks, and CZ emphasizes the need for transparency in the transfer process. He also mentions that some fund movements will occur on-chain, meaning that the transfer will be made via blockchain technology, offering an added level of security and transparency.
According to CZ, the transfer took only 15 seconds and cost $1.29, highlighting the benefits of using cryptocurrency for large-scale transactions. He compares this to the hypothetical scenario of moving $980 million through a bank before banking hours on a Monday, suggesting that it would be an extremely time-consuming and costly process.
Following the announcement, members of the Binance community expressed their support for the decision. One community member mentioned feeling more reassured in light of recent stablecoin developments, while another asked about the safety of BUSD.
CZ responded, stating that BUSD is safe as far as redemption goes, but no new minting is allowed, resulting in a decrease in market cap over time.
Another member questioned the incentive to move the assets if redemptions are safe, to which CZ replied that liquidity would become poorer over time. This exchange highlights the importance of maintaining liquidity in the cryptocurrency market, especially for large funds such as the Industry Recovery Initiative.
However, the decision to convert the remaining funds to native crypto is a positive step for the Binance community, offering increased transparency, security, and liquidity. As cryptocurrency continues gaining popularity and acceptance, we expect to see more large-scale transactions made via blockchain technology.
Lady Of Crypto Defends Binance On Twitter, Clarifies Sarcasm Misunderstanding
In a recent tweet, a popular crypto investor and trader, who goes by the name Lady of Crypto on Twitter, caused a bit of confusion among her followers. She had tweeted about Binance surviving a bank run with ease while a top-tier US bank like SVB couldn’t, but some interpreted her statement as FUD (fear, uncertainty, and doubt) against Binance.
Lady of Crypto quickly clarified her statement, stating that her tweet was meant to be sarcastic and that she actually believes that Binance is not the problem, but rather, banks are. She praised the exchange for seemingly being backed 1:1, unlike banks that operate on fractional reserves, making them vulnerable to bank runs.
However, one member commented on Lady of Crypto’s tweet, expressing concern that FUD against the exchange could harm the crypto industry. Lady of Crypto responded, stating that she was not FUDing the exchange and that she was aware of the important role played by figures like CZ Binance in the industry. However, CZ himself responded to Lady of Crypto’s tweet, simply laughing at the sarcasm.
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