A few years after launching the SAFU Initiative, Binance posted an update on this fund, explaining how its value rose to $1 billion.
This fund was created with the increasing number of hacks and security breaches in the cryptocurrency industry.
Description advertisement The company produced as an emergency insurance fund was established by Binance in mid-2018 to protect the interests and funds of users.
Binance has started to allocate a certain percentage of the trading fee to grow the fund.
Changpeng Zhao, CEO of Binance, commented on the growth of this fund by saying:
Transparency is an important element in building trust, which is why we publish our insurance fund’s portfolio address.
We call on all central trading platforms to do the same as it will benefit the entire ecosystem and demonstrate to governments, regulators and important stakeholders our collective commitment to upholding trust, integrity and transparency in the crypto ecosystem.
The Binance statement also clarified that the platform will continue to monitor the size and development of the fund to ensure that it remains appropriate to protect the interests of users.
Nowadays decentralized trading platforms have become the most preferred platform by hackers.
This does not negate the extensive penetrations that central trading platforms have been subjected to, which have taken their fair share of security breaches.
CryptoCom was the latest example, with attackers stealing $34 million in cryptocurrency.
The company then told that it had paid all the money to the affected users.
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