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Stablecoin Panic! Binance Founder Zhao Changpeng CZ: The remaining $1 billion fund will all be used to buy Bitcoin, Ethereum, and BNB

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Stablecoin Panic! Binance Founder Zhao Changpeng CZ: The remaining $1 billion fund will all be used to buy Bitcoin, Ethereum, and BNB

In recent times, U.S. banks Silvergate, Silicon Valley Bank (SVB), and Signature have successively closed. Despite FDIC taking over Silicon Valley Bank and the Federal Reserve implementing BTFP to guarantee depositors, people's fear of banks has not dissipated.

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In recent times, U.S. banks Silvergate, Silicon Valley Bank (SVB), and Signature have successively closed. Despite the FDIC taking over Silicon Valley Bank and the Federal Reserve implementing the BTFP to guarantee depositors, people's fear of banks has not dissipated.

Binance founder Changpeng Zhao (CZ) stated that due to the turmoil with stablecoins and banks, Binance will convert the remaining portion of the $1 billion Industry Recovery Initiative funds from BUSD to cryptocurrencies, including Bitcoin, Ethereum, and BNB.

There seems to be quite a substantial amount left. According to Whale Alert observations, 9.8 billion BUSD was transferred from the initiative fund to Binance:

XREX co-founder and Chief Revenue Officer Winston Hsiao also adopted a similar approach in his recent article "Silvergate and Silicon Valley Bank Closures Could Trigger a Chain Reaction! Understanding Causes and Predictions at Once": "If you want to hedge or are afraid and want to get rid of stablecoins USDT and USDC, under certain conditions, you can exchange USDT and USDC for mainstream cryptocurrencies like Bitcoin or Ethereum. This can reduce the redemption pressure on Circle and Tether, the two stablecoin issuers, otherwise forcing them to instantly redeem from banks."