Your Funds Are SAFU (Secure Asset Fund for Users)
Introduction:
"Funds are SAFU" is a phrase that became a meme after Bizonacci, a YouTube content creator, produced a video named "Funds Are Safu" in 2018.
The name of the video was a wordplay of the original phrase "Funds are safe" coined by the CEO of Binance Changpeng Zhou.
He tweeted this phrase during an unscheduled maintenance period. After that, he began using this phrase every time he wanted to reassure users that their funds were indeed secure.
Reason SAFU was created:
The SAFU was created in July 2018 to protect Binance users’ funds in the event of unforeseen circumstances. It was developed as an emergency insurance fund to secure users' investments.
In January 2022, Binance announced that SAFU was worth $ 1 billion. The decline in the crypto market has knocked its spot market valuation down to roughly $837 million.
These funds still roughly match the $68 million in Binance’s proof of reserves today, combined with the estimated $800 million within Binance Custody. But further volatility, particularly in BNB, could take SAFU’s valuation far lower when it matters most – especially since its success is directly related to Binance’s stability and growth.
The SAFU balance was topped up by Binance to $ 1 billion in November 2022. SAFU would always retain a sizable level on Binance and within the larger crypto ecosystem, as Binance remains committed to its user base. Binance will continue to uphold that promise and continue to keep building.
Apart from protecting user interests, SAFU’s definition encompasses three essential components towards mass adoption: Trust, Integrity, and Transparency.
Binance takes responsibility for the funds of its users:
Retail traders and investors’ significant amount of trust in centralised crypto exchanges is not as strong as before.
This is why Binance has called upon other centralised exchanges to follow their steps and publicly post their insurance wallet addresses. Users deserve to know if they are transferring their hard-earned money to a platform that employs solid safety measures and is completely transparent about user funds.
When users deposit their money on the Binance platform to use their products, they can rest assured that Binance takes responsibility for those funds seriously. Binance is not and has never been an investment firm or a hedge fund. It is well aware that the industry needs to perform beyond what is required.
Binance ensures users feel more comfortable in the crypto ecosystem. Robust cybersecurity measures are only one part of the equation; the other part is a safety net that can mitigate and stop as much damage as possible in the event of an emergency.
Takeaways:
- Moving forward, SAFU will continue to be a core part of the ecosystem, and it will continue to evolve to meet market conditions head-on.
- Binance is monitoring the fund on an ongoing basis to ensure the fund size remains adequate to protect users' interests. Users can view the wallet addresses where the funds are stored.
Source: (https://cryptopotato.com/binance-safu-insurance-fund-is-44-backed-by-its-own-token/)
Source: (https://www.binance.com/en/blog/community/topping-up-safu-to-$1b-8460049926432191856)
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