Binance to Convert $1B to BTC, BNB, ETH; Bitcoin Hits $22.6K
• Binance has announced that it will convert the remaining $1 Billion from its Industry Recovery Initiative into BTC, BNB and ETH.
• This announcement comes as a response to the bank run experienced by Silicon Valley Bank and the shutdown of Signature Bank.
• Bitcoin’s price hit an intraday high of $22,600 following this news.
Binance To Convert $1B Into Crypto
Binance has announced that it will convert the remainder of its $1 billion Industry Recovery Initiative funds from BUSD to native crypto, including BTC, BNB and ETH. This decision is taken in response to the recent banking fiasco involving banks such as Silicon Valley Bank that experienced bank runs and were consequently shut down by authorities.
Signature Bank Shut Down
The Federal Reserve, FDIC and Treasury Department have come up with a rescue plan for Silicon Valley Bank but they also chose to shut down Signature Bank – one of the three crypto-facing financial institutions in the US.
Cryptocurrency Market Reacts Positively
The cryptocurrency market reacted positively after hearing this news from Binance CEO Changpeng Zhao who took to Twitter to make the announcement. Bitcoin’s price soared to an intraday high of $22,600 (on Binance) while Ethereum rose around 10%.
Transparency From Binance
Changpeng Zhao also mentioned transparency when making this announcement as some fund movement will occur on-chain.
In conclusion, Binance’s decision to convert their remaining funds into native crypto was a wise move considering recent events with banks and stablecoins. The cryptocurrency market reacted positively with both Bitcoin and Ethereum soaring in price as a result of this news.