The only issue that the global markets have been talking about for a few days is the news from the USA. So much so that Silicon Valley Bank, one of the banks preferred by giant companies in the USA, went bankrupt. With the spread of the news, it was started to talk that one of the biggest banking crises of recent years could be experienced in the USA and even that the bankruptcy could create a domino effect. Before the discussions ended, the statements that a bank called Signature Bank went bankrupt came to the fore like a bomb.
Events in the markets have also spread to the world of cryptocurrencies. Because the USD Coin (USDC), which is among the stable coins indexed to the dollar, has experienced a serious decline. The reason for this drop was that the money of the team behind the coin was in Silicon Valley Bank. The value of the coin, which should be 1 dollar, fell to 0.88 dollars. Fortunately, this crisis survived without growth and there was no collapse like TerraUSD (UST) experienced last year.
While all this was going on, a critical move came from Binance.
Changpeng Zhao, nicknamed CZ, the founder of the world’s largest crypto exchange Binance, made a remarkable statement on Twitter. Talking about the $ 1 billion fund called Industry Recovery Initiative, which Binance established to protect crypto money exchanges from sinking, CZ said that the money in this fund will be removed from the BUSD parity. BUSD was Binance’s dollar-denominated coin.
So what does this mean?
In the statements made by CZ, he said that the emergency fund with $ 1 billion worth of BUSD will be converted into Bitcoin (BTC), Ethereum (ETH) and Binance Coin (BNB). In other words, Binance will store the money in the fund with the industry’s largest volume of cryptocurrencies, instead of a dollar-indexed coin.
The statement made by CZ was as follows:
“Given stablecoins and changes in banks, Binance will convert the remaining $1 billion in Industry Recovery Initiative funds from BUSD to native crypto including BTC, BNB and ETH; There will be some fund movements on the chain.”
In order to ensure transparency, CZ also shared the cryptocurrency wallet information where transactions will be carried out. If you want, you can follow the movements in those wallets.
How should this move of Binance be interpreted?
Binance boss CZ has actually shown that he does not trust the dollar and dollar-indexed cryptocurrencies enough by converting the money in his huge recovery fund into BTC, ETH and BNB. This can be interpreted as a positive development for the cryptocurrency community. In fact, the crisis that broke out in the USA has already positively affected the cryptocurrency markets. After the first shock, Bitcoin entered a sharp upward trend and rose from $ 19,600 to $ 22,700. The rise in BTC was over 8 percent in 24 hours.
You can check out Bitcoin’s 24-hour price chart below:
*Source: Coinmarketcap.
Note: This content is definitely not investment advice.
59686
