The only problem that the world markets have been talking about for a few days is: News from the US. So much so that it is one of the preferred banks for giant corporations in the US. silicon valley bank, sunk. With the news spreading, talk began that one of the biggest banking crises in recent years could be experienced in the US and even that the bankruptcy could create a domino effect. This time before the discussions are over. signature bank The statements that a bank called bankruptcy also went bankrupt fell like a bomb on the agenda.
Events in the markets have also spread to the world of cryptocurrencies. For dollars expressed USD Coin (USDC), which is one of the stablecoins, has experienced a serious decline. The reason for this decline was that the team’s money was behind the coin in Silicon Valley Bank. The value of the coin, which should be $1 Reduced to just $0.88. Fortunately, this crisis has been overcome without growth, and that of the past year TerraUSD (UST) There was no such collapse.
While all this was going on, a crucial move came from Binance.
The founder of the world’s largest cryptocurrency exchange Binance, nicknamed CZ Changpeng Zhaomade a remarkable statement on Twitter. Binance founded to protect cryptocurrency exchanges from sinking Industry recovery initiative Speaking of the $1 billion fund called CZ, the money in this fund It is removed from the BUSD parity. told. BUSD was Binance’s dollar-denominated currency.
So what does this mean?
In CZ’s statements, the emergency fund with $1 billion of BUSD Bitcoin (BTC), Ethereum (ETH) and Binance Coin (BNB) said it would be made. In other words, Binance will store the money in the fund with the largest volume of cryptocurrencies in the industry, rather than a dollar-indexed coin.
CZ’s statement read as follows:
“Given stablecoins and banking changes, 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 movement in the chain.”
CZ is the cryptocurrency in which transactions are made to ensure transparency. wallet information also shared. If you want, you can track the movements in those wallets.
How should this move by Binance be interpreted?
Binance boss CZ actually converted the money in his huge rescue fund into BTC, ETH and BNB, and actually invested in dollars and dollar-denominated cryptocurrencies. don’t trust enough it turned out to. This can be interpreted as a positive development for the cryptocurrency community. In fact, the crisis that erupted in the US has already positively affected the cryptocurrency markets. After the initial shock, Bitcoin entered a sharp uptrend, rising from $19,600 to $22,700. BTC bullish in 24 hours over 8 percent it is over.
You can view Bitcoin’s 24-hour price chart below:
Remark: This content is definitely not investment advice.
Source: Web Tekno
Jason Root is a blockchain enthusiast and author at Div Bracket. He provides comprehensive coverage of the latest developments in the world of blockchain, offering readers a unique perspective on the industry and its potential for revolutionizing various industries.