Binance CEO CZ tweeted to reassure consumers that the cryptocurrency exchange has added another $1 billion to its insurance reserves to bring the total to $2 billion.
The industry recovery fund at the cryptocurrency exchange Binance has received an additional $1 billion in funding, bringing the total amount of the fund to almost $2 billion.
Changpeng “CZ” Zhao, CEO of Binance, announced the additional allocation on Friday in order to reassure his community that his exchange has enough money to support it as the market liquidity crisis persists.
The size increase occurs a day after CZ stated that Binance is aiming to raise $1 billion for its cryptocurrency recovery fund. Along with other well-known cryptocurrency businesses, Aptos Labs and Jump Crypto joined Binance’s initiative and will each make a $50 million donation to the fund.
The industry would be supported and troubled crypto assets would be purchased using the recovery fund. Since the beginning of the year, the cryptocurrency market has experienced a sharp downturn, which has caused a number of crypto enterprises to close their doors.
10% of the trading fee was put into a fund specifically for backing up user holdings in the event of a crisis as the first step in Binance’s SAFU, which was launched in 2018. The fund reached $1 billion for the first time in February of this year.
The majority of the responses to the tweet from the crypto community on Twitter were supportive, praising CZ for his initiative. The reaction to the SAFU balance came after CZ promised on Twitter the day before to implement a Proof-of-Reserve method for an in-depth liquidity disclosure.
BTC is currently trading 1.6% lower during the day and is hanging around $16,400 at the time of writing, indicating that the cryptocurrency market is still under pressure.