Binance CEO urges exchanges to provide proof of customer deposits

Binance CEO Changpeng Zhao has made the latest effort to give users peace of mind in light of the recent FTX crash.

Binance wants exchanges to be transparent about reserve assets

The "terrible" collapse of the FTX exchange in just a few days has led to fear in the investor community about the story of this liquidity crisis that could be many times more serious than this. with the LUNA/UST event or the bankruptcy chain effect from crypto lenders.

They are very worried that the "nightmare" of FTX is leading to many direct threats to personal assets that they are storing on other centralized exchanges because even the assets of FTX CEO Sam Bankman -Fried quickly "evaporated" 14.6 billion USD overnight.

In order to further strengthen user confidence, on November 8, a number of the largest crypto companies in the US had to speak to reassure the community with a statement that they did not contact or relate to FTX and FTT tokens. And not long after that, at noon on November 9, Binance CEO Changpeng Zhao also directly posted a status line on his personal page calling on popular exchanges to provide proof of customer deposits. .

This is considered a solution that Binance offered to prevent a similar case like FTX, which suddenly stopped processing withdrawals in the current chaotic context, greatly affecting the interests of users and the whole industry. crypto. As for Binance alone, Changpeng Zhao said that the exchange will soon release all figures on its reserves, completely open and transparent.

Binance adds funds to users' insurance funds

Not only that, Binance has reloaded 700 million USD BNB and BUSD combined 300 million USD BTC into SAFU Fund, bringing the fund value again to 1 billion USD (previously SAFU reached this milestone in Feb. 2022), to ensure volatility in market prices in recent days.

Basically, Secure Asset Fund for Users (SAFU) is an insurance fund established by Binance in July 2018 as a measure to protect users, money from the fund is used to return investors. assets lost due to hacking or any other event resulting in loss of user assets.

Since its inception, Binance has deducted 10% of revenue from trading fees on the exchange to increase funds for SAFU, in the form of BTC, BNB and BUSD coins. Therefore, the USD value of the fund may change depending on the fluctuations of these currencies.

OKX Responds For "Decentralization"

Returning to the main topic, the first exchange to support Binance's "million flag" is OKX. Accordingly, OKX plans to publish an asset report in the near future (about 30 days). In addition, OKX concurs that this action is an important step towards establishing fundamental trust in the industry among users.

Interestingly, OKX founder Mingxing Xu was one of the first influential figures to advise against the Binance CEO not to push the conflict with FTX too far to avoid deeply hurting the entire crypto industry.

Jusin promises to "rescue" stuck FTX users

Next is Huobi, a once-famous "giant" in the Chinese market, which has officially completed the transfer of ownership to the Hong Kong-based About Capital Management investment fund, accompanied by That includes Tron founder Justin Sun as a global advisor.

Justin Sun stated that he wanted to follow through on the call of the CEO of Binance. Although both Huobi and Poloniex (which are controlled by Justin Sun) have regularly released probate reports in the past, given the current situation, another new report is needed to boost public confidence. use.

Finally, Justin Sun made the decision to "rescue" users who were still stuck unable to withdraw tokens of the Tron ecosystem including TRX, BTT, JST, SUN, HT on FTX through compensation. Usually these tokens with 1:1 ratio from Huobi and TRON DAO exchange. Losing users can fill out the registration form to receive support from Tron.

However, with the move on Justin Sun, it created a strong push to help the price of TRX "anti-storm" temporarily called a success when most of the altcoins on the market fell without stopping when BTC did not show any signs of recovery after the storm. plummeted to the area of ​​17,000 USD in the early morning of November 9. At press time, TRX is trading around $0.061.

FoxCryptoNews summary

Nov 09, 2022