- Binance CEO Changpeng Zhao acknowledged the changes in stablecoins and banks in the crypto ecosystem.
- The world’s largest exchange by trade volume has transparently converted $1 billion Industry Recovery Initiative fund to BTC, BNB and ETH.
- CZ took a dig at the banks faced with voluntary liquidation and collapse, recommending they do a Proof-of-Reserve for transparency.
Binance, the world’s largest exchange by trade volume recently announced changes to its $1 billion industry recovery fund. The exchange's CEO, Changpeng Zhao took a dig at banks asking them to increase transparency and do a Proof-of-Reserve using Merkle trees.
Also read: Can the collapse of Silicon Valley Bank fuel the China coin narrative?
Binance’s $1 billion Industry Recovery Initiative fund turns to Bitcoin, Ethereum and BNB
The collapse of FTX exchange and Alameda Trading had a domino effect on cryptocurrency lenders, institutions and exchanges. Taking note of the effect and the need for an infusion of capital, Binance announced the Industry Recovery Initiative (IRI) in the last week of November.
The exchange announced a $1 billion fund that will support crypto projects struggling with liquidity issues due to FTX's collapse. The fund held stablecoins as well, as part of the $1 billion. However the de-peg and collapse of USDC and subsequently other stablecoins in the crypto ecosystem has changed the landscape and dynamics for crypto market participants.
Changpeng Zhao, the CEO of Binance addressed the uncertainty and offered the conversion of the recovery fund to Bitcoin (BTC), Ethereum (ETH) and Binance Coin (BNB) as a solution to alleviate concerns of crypto projects and traders.
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
Interestingly, CZ took a dig at banks, asking them to share their Proof-of-Reserves for increased transparency. The Binance CEO acknowledged that the exchange is looking for a new banking partner. The crypto trading platform recently distanced itself from the crypto-friendly Silvergate bank that announced voluntary liquidation.
All these banks are audited, right?
— CZ Binance (@cz_binance) March 13, 2023
Crazy idea: maybe banks should do a Proof-of-Reserve using merkle trees? ♂️
Even if it is not 100%, we should know the %, right? Transparency.
The industry giant’s move is expected to return public confidence to cryptocurrencies like Bitcoin, Ethereum and the exchange’s native token BNB.
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