The Binance CEO says that with the recent “shifts” in stablecoins and banks, the company’s recovery fund will be shifted from BUSD to native cryptocurrencies like Bitcoin.
The failure of three major cryptocurrency-friendly banks — Silicon Valley Bank (SVB), Silvergate Bank, and Signature Bank — sent the US dollar into a tailspin.
The stablecoin will drop to $0.87 from $1.
Amid growing concerns about stablecoins, Binance co-founder and CEO Changpeng “CZ” Zhao tweeted on March 13 that with “changes in stablecoins and banks,” the exchange will convert the remaining $1 billion from the Industry Recovery Initiative into “native cryptocurrency.” . ”
The original cryptocurrencies listed by Czechoslovakia included Bitcoin
. He then posted links to the hash ID for the BTC and ETH transactions, saying that $980 million took 15 seconds to move with a transaction fee of $1.98.
In response to the Binance co-founder’s move, Crypto Twitter had mixed reactions. Some hailed the decision, calling it “solid gold” and proposing to use altcoins to create stablecoins:
However, others questioned the move to sell Binance USD
A stablecoin and converting the fund into more “volatile” assets.
On March 10, Circle, the company behind USDC, revealed that it had approximately $3.3 billion linked to SVB, which triggered the initial decoupling event. However, by March 13, USDC had recovered to the $1 level – and it is currently hovering around $0.99.
Related: BREAKING: HSBC takes over Silicon Valley UK bank for £1
Circle also has an undisclosed amount of reserve funds held at Silvergate, another cryptocurrency-friendly bank in the US that has gone bankrupt.
The instability surrounding USDC has caused a domino effect on other stablecoins such as Dai
And USDD and FRAX, which also broke away from the $1 level.
Ever since the events began to unfold on March 10th, the cryptocurrency space has been on edge about what happens next. Twitter users have claimed that there is “no one left in charge of crypto companies”.