A large chunk of Binance’s emergency insurance fund – 44% – is made up of the crypto exchange’s own BNB tokens, a report by CryptoPotato says, which cited a tweet by on-chain analyst Willy Woo saying the Secure Asset Fund for Users (SAFU) includes $367 million worth of BNB, while the remainder is $300 million of Binance’s dollar-pegged stablecoin BUSD and $270 million of Bitcoin.
“While I commend Binance for having such a fund, there’s no sense putting incidence-correlated BNB in there,” Woo said, “How would we feel about FTX having an insurance fund filled with FTT?”, but the report noted that Binance “plans to implement a proof of reserves system verifying its total exchange assets as well.”
Read the full report: CryptoPotato.
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The post Binance Insurance Fund 44% Backed by its Token – CryptoPotato appeared first on Asia Financial.
