TLDR
- Binance has launched a $400 million recovery initiative to support users impacted by the recent crypto crash.
- The compensation will be distributed to users who experienced forced liquidations between October 10 and 11.
- Binance plans to offer amounts ranging from $4,000 to $6,000 based on the user’s liquidation loss.
- The company will also provide $100 million in low-interest loans to help institutional investors and traders.
- The crypto crash heavily impacted Bitcoin and BNB, but Binance Coin showed resilience and partial recovery.
Binance is injecting another $400 million into the crypto market to help traders affected by last week’s crash. The move follows record liquidations that saw top crypto assets lose significant value. The crypto crash, which resulted in $19 billion in liquidations, led to sharp price drops and left many traders with substantial losses.
Binance’s $400 Million Recovery Initiative
Binance has announced a new $400 million initiative to compensate traders impacted by the recent crypto crash. The recovery program, called the “Together Initiative,” aims to support users who suffered forced liquidations between October 10 and 11. Of the total amount, $300 million will be distributed to users based on their liquidation losses, ranging between $4,000 and $6,000 each.
According to Binance’s announcement, the compensation will be calculated based on factors like loss amounts and ratios. The platform anticipates that the distribution of funds will commence within the next 24 hours. Binance co-founder Changpeng Zhao, also known as CZ, emphasized the company’s commitment to protecting its users through these efforts.
The remaining $100 million from the initiative will be allocated to ecosystem traders and institutional investors. This amount will help traders affected by the crash restart their activities with low-interest loans. Binance’s move is part of a broader strategy to recover from the turmoil caused by the crypto crash.
Impact of the Crypto Crash on Bitcoin and BNB
The crypto crash last week had a severe impact on Bitcoin, with the asset briefly dropping below $106,000. This sharp decline was part of the $19 billion worth of liquidations that triggered panic selling in the market. Bitcoin has since partially recovered, now trading at approximately $113,338, reflecting a 7% drop over the week.
Despite the crash, Binance Coin (BNB) has shown resilience. BNB dropped by just 5% over the week, outperforming other assets. In fact, BNB reached an all-time high of $1,369 on Monday before settling at $1,220, marking a 31% increase over the last month.
Binance’s proactive steps to offer financial relief have been well-received by the community. CZ’s statement on social media highlighted that talk is cheap, but Binance’s actions reflect its commitment to user protection. As the market stabilizes, Binance continues to lead in efforts to mitigate the damages caused by the recent crypto crash.
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Source: https://blockonomi.com/binance-rolls-out-400m-recovery-plan-following-19b-crypto-crash/