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After crypto exchange FTX collapsed in November, Binance established the “Industry Recovery Initiative”, which contains $1 billion in BUSD. Binance CEO Changpeng Zhao announced that the funds will now be converted to BTC, ETH, and BNB.
When the infamous crypto exchange FTX collapsed in November, Binance announced the “Industry Recovery Initiative”- a fund to aid struggling crypto projects reeling from a liquidity crisis due to the FTX fallout. Binance’s initiative contains $1 billion worth of Binance USD Coin (BUSD) which could at any time be converted to Bitcoin (BTC), Ethereum (ETH), and Binance Coin (BNB). Changpeng “CZ” Zhao recently announced on Twitter that the funds will now be converted.
CZ took to the social media platform and suggested that the recovery initiative funds be converted to BTC, ETH and BNB.
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 ð¶ Binance (@cz_binance) March 13, 2023
No Surprise Given Scrutiny Around BUSD
The decision to convert the funds from BUSD to other tokens is unsurprising as US regulatory scrutiny over the stablecoin heats up. The popular crypto exchange Coinbase announced that it would suspend trading for BUSD in less than a month. Coinbase decided after Paxos Trust said it would stop minting the Binance-branded stablecoin citing regulatory pressure.
Binance has said it will limit the use of BUSD, and it naturally follows that it would shift its focus to assets such as BTC, ETH, and BNB. In his announcement, CZ also mentioned that the decision to convert funds was made due to the changes in stablecoins and banks.
CZ also mentioned transparency, saying all fund movements will occur on-chain and provided wallet addresses and transaction details. The CEO’s nod to transparency has likely to do with recent reports of irregular activities taking place between itself and its US subsidiary Binance. US.
The address: https://t.co/uSy1DlZCyG— CZ ð¶ Binance (@cz_binance) March 13, 2023
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.