Binance Intervenes After Collapse: 400 Million in Aid for Crypto Community
After the 'Black Friday' of cryptocurrencies, Binance announced a $400 million plan: $300 million in vouchers to reimburse traders with losses of more than 30% and $100 million in institutional loans.
The last week ended with a difficult day for the cryptocurrency sector, an event that was soon dubbed 'Black Friday'. The escalation of former president Trump's threats to expand anti-China duties turned into a real crisis. The sudden announcement of 100 per cent duties triggered an unprecedented mass liquidation for the crypto sector.
Binance came under heavy criticism for its alleged inaction and platform malfunctions during the crash. In response to these accusations, the exchange recently announced a new support initiative to help the community recover.
The $400 Million Support Initiative
According to Binance's official announcement, this $400-million support plan has two key components. The bulk of the funds, $300M, will go to reimburse Binance users who suffered large losses, or were 'rekt', due to Black Friday.
💛 Binance launches the Together Initiative, a $400M recovery and confidence-rebuilding plan to support users and institutions during this volatile period.
Traders who have experienced a loss of more than 30 per cent of their net crypto portfolio will receive a voucher worth between $4,000 and $6,000 within the next 24 hours. The aim is to provide immediate help to those most affected by the sudden collapse.
Support for the Ecosystem and Institutional Stability
The remaining $100 million is intended to support the wider ecosystem. The exchange will establish low-interest loans to help institutional customers and other developers recover quickly and maintain their internal stability. It is hoped that these measures will help alleviate any liquidity crisis triggered by the crash.
This is not the first time Binance has come to the aid of the community. The exchange had previously distributed funds via airdrop to support liquidated meme coin traders on BNB. However, this new initiative represents a far larger commitment.
The Causes of the Black Friday collapse
In the days following Black Friday, Binance has been working to support the community. There is no denying that its platform manifested several crucial problems: users reported account freezes and flash crashes, and several glitches even caused the de-peg of some stablecoins.
Although some analysts have argued that it is unfair to disproportionately blame Binance, given that other exchanges also contributed to the dynamics of Black Friday, the exchange is nonetheless making every effort to help rebuild the system. The hope is that these moves will help mitigate the current bearish momentum in the cryptocurrency markets.
The on-chain data reveals how wallet 0x872a...e6b8 used the Maestro bot to execute a flawless strategy on the $4 meme coin, achieving a 652x gain. This success highlights the high-risk battlefield of automation in early liquidity trading.
Aster, the new decentralised derivatives platform backed by Changpeng Zhao, exploded at launch: +800% in one week and over USD 1.4 billion in volume, challenging Hyperliquid's leadership.
The last week ended with a difficult day for the cryptocurrency sector, an event that was soon dubbed 'Black Friday'. The escalation of former president Trump's threats to expand anti-China duties turned into a real crisis. The sudden announcement of 100 per cent duties triggered an unprecedented mass liquidation for the crypto sector.
Binance came under heavy criticism for its alleged inaction and platform malfunctions during the crash. In response to these accusations, the exchange recently announced a new support initiative to help the community recover.
The $400 Million Support Initiative
According to Binance's official announcement, this $400-million support plan has two key components. The bulk of the funds, $300M, will go to reimburse Binance users who suffered large losses, or were 'rekt', due to Black Friday.
Traders who have experienced a loss of more than 30 per cent of their net crypto portfolio will receive a voucher worth between $4,000 and $6,000 within the next 24 hours. The aim is to provide immediate help to those most affected by the sudden collapse.
Support for the Ecosystem and Institutional Stability
The remaining $100 million is intended to support the wider ecosystem. The exchange will establish low-interest loans to help institutional customers and other developers recover quickly and maintain their internal stability. It is hoped that these measures will help alleviate any liquidity crisis triggered by the crash.
This is not the first time Binance has come to the aid of the community. The exchange had previously distributed funds via airdrop to support liquidated meme coin traders on BNB. However, this new initiative represents a far larger commitment.
The Causes of the Black Friday collapse
In the days following Black Friday, Binance has been working to support the community. There is no denying that its platform manifested several crucial problems: users reported account freezes and flash crashes, and several glitches even caused the de-peg of some stablecoins.
Although some analysts have argued that it is unfair to disproportionately blame Binance, given that other exchanges also contributed to the dynamics of Black Friday, the exchange is nonetheless making every effort to help rebuild the system. The hope is that these moves will help mitigate the current bearish momentum in the cryptocurrency markets.
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