Binance CEO Changpeng Zhao has recently affirmed his company’s dedication towards a secure and long-term crypto industry by launching the “Industry Recovery Initiative” following the FTX’s collapse. In this initiative, Binance will convert $1 billion of BUSD into BTC, ETH, and BNB.
More About the Initiative
Binance has officially launched the Industry Recovery Initiative, an aid fund of $1 billion worth of Binance USD Coin (BUSD) available to be converted to Bitcoin (BTC), Ethereum (ETH), and Binance Coin (BNB). This initiative was announced to provide relief to various crypto projects which are currently under liquidity pressure due to the fallout of FTX. Changpeng Zhao recently shared the news of the fund conversion on Twitter.
Many Saw it Coming
Well, it is not surprising that the decision to convert funds from BUSD to other tokens has been made, as US regulatory scrutiny of the stablecoin is gradually increasing. Coinbase, a popular crypto exchange, recently announced that trading for BUSD would be stopped within a month. Paxos Trust also announced that it would halt the minting of the Binance-branded stablecoin due to the rising regulatory pressure.
Binance has declared that it will be constraining the application of BUSD and consequently, will be emphasizing its attention on cryptocurrency like BTC, ETH, and BNB.
Furthermore, CEO Changpeng Zhao has expressed his commitment to transparency, ensuring that all fund movements will occur on-chain, and the wallet addresses and transaction details will also be provided. This is likely in response to recent reports of possible irregularities between Binance and its US subsidiary Binance. US.