The past week has been wild altogether and not just in the cryptocurrency market. A major bank in the US – Silicon Valley Bank – experienced what was essentially a bank run and was forced to shut down by authorities to prevent further panic.
The government, in the face of the Federal Reserve and the Treasury, as well as the FDIC, were quick to come up with a rescue plan, but at the same time, also shut down Signature Bank – the last one of the three crypto-facing financial institutions in the US.
Amid all of the above, the CEO of Binance – Changpeng Zhao, took to Twitter to reveal that they plan to convert the remainder of the $1 billion Industry Recovery Initiative funds from BUSD to native crypto.
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 movement will occur on-chain. Transparency.
Perhaps somewhat expectedly, the cryptocurrency market took for the sky, adding to the gains it had already charted hours before the announcement.
Bitcoin’s price hit an intraday high of $22,600 (on Binance) and is currently up 6% on the day.
Ethereum is up around 8% on the day, while BNB soared by roughly 10%.
The Industry Recovery Initiative was announced by CZ back in November 2022.
To reduce further cascading negative effects of FTX, Binance is forming an industry recovery fund, to help projects who are otherwise strong, but in a liquidity crisis.
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