• Binance – the world’s largest cryptocurrency exchange – is converting $1 billion of its stable currency BUSD into various digital assets.
• The conversion is meant to help crypto companies and banks that are facing liquidity crises, as several banks have recently failed due to the 2008 financial crisis and Great Recession.
• Bitcoin’s price has recently shot up by more than nine percent, showing the growing strength and stability of the digital asset.
Binance Converting $1 Billion in BUSD
Binance – the world’s largest and most popular digital currency exchange – is converting more than $1 billion of its stable currency BUSD (Binance USD) into bitcoin, Ethereum, and various other digital assets. This news came about in a tweet issued by the company’s CEO Changpeng Zhao, who stated: Given the changes in stablecoins and banks, Binance will convert the remaining of the one billion Industry Recovery Initiative funds from BUSD to native crypto including BTC, BNB, and ETH.
Purpose of Conversion
The goal is to help crypto companies and banks that are not necessarily in danger of collapsing altogether, but that are enduring liquidity crises. This should ring bells given that Binance was initially set to aid FTX – the now defunct crypto exchange– out of a liquidity crisis in November of last year, though plans for doing so fell through after Binance looked at the problems FTX was facing and decided they were too big to assist with.
The news of this financial conversion comes at the height of several bank failures, including those – such as Silvergate and Silicon Valley Bank – that were friendly towards crypto and tech enterprises. These failures have been labeled by some analysts as among worst since the 2008 financial crisis and Great Recession. Additionally, Silicon Valley Bank housed Circle’s USDC coin reserves which temporarily lost its peg during all this hype; however it has since regained it’s value back at 1:1 USD-to-USDC rate.
Bitcoin Price Increase
Despite all this hype surrounding bank closures Bitcoin’s price recently shot up by more than nine percent adding about $3K over a few days time frame – making it a true testament to growing strength & stability of world’s number one digital currency by market cap. It seems traders believe we’re witnessing final reigning hours of 2022 bear market for cryptocurrencies & could be officially ending soon enough!
This move by binance ultimately aims to ensure their exchange remains steady even if not even stablecoins are fully safe anymore & signals an end ot bear market with increasing confidence among traders on cryptocurrencies‘ future potential!