Binance will take 1 billion BUSD in its Industry Recovery and Initiative fund to buy BTC, ETH, and BNB.
Back in November of last year, after the collapse of the FTX exchange, Binance decided to establish an Industry Recovery and Initiative fund. This fund is tasked with supporting cryptocurrency projects that are experiencing liquidity crises.
Since the foundation of the fund, CEO of Binance Changpeng Zhao (CZ) has repeatedly called for support, and to date the fund is worth about 1 billion BUSD.
However, only in the first 3 months of the year, the cryptocurrency market encountered many turbulence, from Paxos being… The US government asked to stop issuing BUSD because the SEC considers BUSD to be an unregistered security, until the most recent events the three major banks in the US collapsed simultaneously. Silvergate, Silicon Valley and Signaturewhich made CZ rethink the goal of his BUSD 1 billion fund.
Recently, CZ announced on Twitter that the funds in the Industry Recovery and Initiative fund will be used for another purpose, which is “buying BTC, ETH and BNB”.
Given the changes in stable coins and banks, #Binance will convert the remaining of the $1 billion Industry Recovery Initiative funds from BUSD to native crypto, including #BTC, #BNB and ETH. Some fund movements will occur on-chain. Transparency.
— CZ Binance (@cz_binance) March 13, 2023
“Binance will convert the remainder of the BUSD 1 billion Industry Recovery and Initiative fund into BTC, ETH and BNB. Transactions will be made transparently,” said CZ.
In addition, the Binance CEO also added that the move is due to changes in stablecoins and the current situation of banks is very bad.
To some analysts and experts, this is not surprising considering the recent scrutiny of The US government deals with BUSD.
“Now that Binance intends to restrict the use of BUSD, the focus will definitely shift to other assets like BTC, ETH, BNB and other cryptocurrencies..”, news site Watcher.guru said.
Many people on Twitter have praise CZ for his move to “save the market”. Besides that, there are also some people noting that there has been 1 billion USD buying pressure on BTC, ETH, and BNB.
$1B buying pressure on $BTC, $ETH and $BNB https://t.co/WOm2AOcOVR
— Ki Young Ju (@ki_young_ju) March 13, 2023
See also: Elon Musk can buy Silicon Valley Bank