On Monday, Binance CEO Changpeng Zhao (also known as CZ) announced that his company has received $1 billion from the Industry Recovery Initiative fund worth of BUSD into three cryptocurrencies, aOn Monday, Binance CEO Changpeng Zhao (also known as CZ) announced that his company has received $1 billion from the Industry Recovery Initiative fund worth of BUSD into three cryptocurrencies, an announcement that Zhao noted would mark a major on-chain move.n announcement that Zhao noted would mark a major on-chain move.
CZCZ Decides to Convert $1 Billion BUSD Amid Troubles for Stablecoin Decides to Convert $1 Billion BUSD Amid Troubles for Stablecoin
Binance CEO Changpeng Zhao (CZ)Binance CEO Changpeng Zhao (CZ) announced on Mondayannounced on Mondaythat he has converted $1 billion of BUSD into Bitcoin (that he has converted $1 billion of BUSD into Bitcoin (BTCBTC)), BNB, BNBand Ethereum (and Ethereum (ETHETH).” Given the stablecoin and banking changes, Binance plans to convert the remaining $1 billion from the Industrial R).” Given the stablecoin and banking changes, Binance plans to convert the remaining $1 billion from the Industrial Recovery Initiative funds from BUSD into native crypto, includingecovery Initiative funds from BUSD into native crypto, includingBTCBTC,, BNBBNBandand. and ETH. and ETH. Some fund tra. Some fund transfers will be done on-chain. There is transparency,” Zhao said.nsfers will be done on-chain. There is transparency,” Zhao said.
After tweeting the announcement, CZ shared the address of the Industrial Recovery Initiative and a transaction explorer link to the transfers haAfter tweeting the announcement, CZ shared the address of the Industrial Recovery Initiative and a transaction explorer link to the transfers handled by the exchange. One person replied to CZ’s Twitter threadndled by the exchange. One person replied to CZ’s Twitter threadand saidand said: “Those who are a little nervous about the recent stabi: “Those who are a little nervous about the recent stability coin activity will be much more comfortable.” Binance’s CEOlity coin activity will be much more comfortable.” Binance’s CEOrepliedreplied, “I never thought of that. I was just , “I never thought of that. I was just discussing ways to keep funds in safe assets. But it works too.”discussing ways to keep funds in safe assets. But it works too.”
According to Nansen’s Exchange Portfolio ToolAccording to Nansen’s Exchange Portfolio Tool,, as of this writing, Binance holds 7.56 billion BUSD stablecoins as of this writing, Binance holds 7.56 billion BUSD stablecoinsCZ’s announcement comes as USDC struggled to keep parity with the USD this weekend after the collapse of Silicon Valley Bank (SVB) This is a result of the fact that the US dollar has been a major factor in the collapse of the Silicon Valley Bank. In addition, U.S. regulators forced Paxos to stop issuing BUSD, and bCZ’s announcement comes as USDC struggled to keep parity with the USD this weekend after the collapse of Silicon Valley Bank (SVB) This is a result of the fact that the US dollar has been a major factor in the collapse of the Silicon Valley Bank. In addition, U.S. regulators forced Paxos to stop issuing BUSD, and billions of BUSD tokens have since been removed from circulation.illions of BUSD tokens have since been removed from circulation.
Although BUSD has faced regulatory scrutiny, this stablecoin has managed to stay within the $0.99 to $1 range most of the time; on March 11, 2023, BUSD briefly dipped slightly into the $0.9848 range, but deviated from $1 parity over the paAlthough BUSD has faced regulatory scrutiny, this stablecoin has managed to stay within the $0.99 to $1 range most of the time; on March 11, 2023, BUSD briefly dipped slightly into the $0.9848 range, but deviated from $1 parity over the past weekend It remained stronger than the other five stablecoins.st weekend It remained stronger than the other five stablecoins.
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