Binance Shakes up Crypto Recovery Game, Converts $1B BUSD
In a move that has sent shockwaves through the cryptocurrency world, Binance Shakes up the Crypto game by has announced a bold and daring plan to convert their $1 billion BUSD fund to BTC, BNB, ETH, and more, leaving investors on the edge of their seats and wondering what other surprises the exchange has in store.
The recent announcement by Barclays Bank that it would no longer provide banking services to cryptocurrency companies has sparked a strong reaction from the crypto community. Many are concerned that this move will make it even more difficult for crypto companies to operate, as few traditional banks are willing to work with them.
Some point out that this move is another example of the perceived bias against a cryptocurrency from the traditional banking sector. This bias has been seen in many cases where banks have refused to work with cryptocurrency companies or even close the accounts of customers who engage in crypto-related transactions.
Others are taking a more proactive approach, suggesting that the crypto industry may need to create its banking system, perhaps using blockchain technology to provide financial services to crypto companies.
Some are also questioning the legality of the move by Barclays, suggesting that it could violate anti-trust laws by limiting competition in the financial industry.
Binance USD Allocating $1 Billion Industry Recovery Initiative Funds to Native Crypto.
The Industry Recovery Initiative
The Binance USD Industry Recovery Initiative has been launched to support the development and growth of the crypto industry. The initiative aims to provide a significant financial boost to native coins across various blockchain ecosystems.
The $1 billion fund is intended to help kick-start and accelerate the development and deployment of the native coins of emerging blockchain projects. Binance will operate an open, transparent, and targeted selection process to identify the best projects to allocate the funds.
Natasha Cane, Head of Business Development at Binance USD, said that “the initiative is our contribution to rebuilding the crypto industry and provides much-needed support to those who are at the forefront of developing and deploying blockchain technology.”
Converting BUSD to Native Cryptocurrency
The Binance USD Industry, Recovery Initiative funds will be allocated directly to the native cryptocurrency of each selected project. The funds will be converted from BUSD to native cryptocurrency to support its development and deployment.
The conversion process will be carried out through Binance’s OTC trading desk, ensuring that the native coin of each project is directly supported by the allocated funds. The OTC desk operates around the clock, providing high liquidity and low spreads, allowing seamless and cost-effective conversions.
Binance USD as a Stablecoin
BUSD is a USD-backed stablecoin that is pegged to the value of the US dollar. The stablecoin is issued by Paxos Trust Company, a regulated trust company overseen by the New York State Department of Financial Services (NYDFS).
As a stablecoin, BUSD provides a stable store of value for users and traders, avoiding the price volatility often associated with other cryptocurrencies. BUSD has gained significant adoption and is listed on over 30 exchanges, including Binance, BitMax, KuCoin, and OKEx.
Overall, the reaction to this news from the crypto community has been one of concern and frustration. Many are worried that the lack of banking services will make it more difficult for crypto companies to grow and succeed and could even result in some companies being forced to shut down.