| ▲ | scrlk 2 hours ago |
| Their insurance fund (SAFU) is completely wiped out, it's only $1 billion in BTC: https://www.binance.com/en/academy/glossary/secure-asset-fun... The name of the fund was originally inspired by this meme: https://www.youtube.com/watch?v=DelF6zEHXpE FWIW, at the end of every crypto bear market, a CEX usually blows up (eg FTX)... |
|
| ▲ | schleck8 2 hours ago | parent | next [-] |
| > As of 2026, the SAFU fund comprises crypto assets valued at approximately US$1 billion, held entirely in Bitcoin And decreasing, since BTC is dropping as we speak. Always a good idea to hedge a currency with the currency itsself |
| |
| ▲ | echoangle an hour ago | parent [-] | | > And decreasing, since BTC is dropping as we speak. Always a good idea to hedge a currency with the currency itsself Depends on what you’re insuring, no? For theft, it actually makes senses, right? That way, you’re insuring a constant number of coins, no matter what the market is doing. If you’re insurance currency would tank during a bitcoin heist, you would lose the insurance effect. |
|
|
| ▲ | miohtama 31 minutes ago | parent | prev | next [-] |
| Stablecoins are frozen so the hole will likely be around two billion dollars. Binance has equity and cash flow cover this, outside the insurance fund. They custody $150B. FTX was larger in dollar terms and ecosystem was smaller back in a day. |
| |
| ▲ | rootedbox 4 minutes ago | parent [-] | | This might sound good.. but freezing currencies is bad. It evaporates trust of liquidity from whoever is doing governance. It's part of the reason why the bond market is doing what its doing lately and why countries are on-shoring gold reserves. |
|
|
| ▲ | anonymous908213 2 hours ago | parent | prev | next [-] |
| > Changpeng Zhao (CZ), former CEO of Binance, tweeted "Funds are safe" Seems like the issue here is that he became former CEO. Funds are not safu without him... |
| |
|
| ▲ | razodactyl 7 minutes ago | parent | prev | next [-] |
| Wait. How does the insurance fund run significantly lower than the primary? |
|
| ▲ | Cyclone_ an hour ago | parent | prev | next [-] |
| But when FTX blew up crypto went down even further.. |
| |
|
| ▲ | lxgr 2 hours ago | parent | prev | next [-] |
| Do you mean bull market? |
| |
| ▲ | scrlk 2 hours ago | parent [-] | | It's a (weak) bear market capitulation signal - max fear when people think everything is broken. | | |
| ▲ | incompatible an hour ago | parent [-] | | It seems like bitcoin, currently 78719, was only 58526 on 30 June. That's 34.5% up in four months, meeting the definition of bull market. | | |
| ▲ | kimixa 31 minutes ago | parent [-] | | Bitcoin is volatile enough you can cherry-pick pretty much any %age you want based on the dates you choose. Which you seem to have done here - "happening" to choose the day with the lowest single day value in the last 3 years for your comparison point. For another narrative, it was 83,038 a month ago on Sept 29th, so is down 5% in one month. And one year ago it was 112,562 on Oct 29th 2025 - down over 30% in one year. Well into "bear market" territory. Using "traditional" market indicators and definitions for things like bear/bull markets doesn't feel sensible for such a volatile market. |
|
|
|
|
| ▲ | dist-epoch 2 hours ago | parent | prev [-] |
| The insurance fund is not for covering hacks. Binance is making so much money, covering this hack is peanuts for them. |
| |
| ▲ | thechairman12 an hour ago | parent | next [-] | | Not to be too pedantic, but with some napkin math, I don't think this is true. Looking for clarification!! I downloaded Binance's self published market data (https://data.binance.vision/), calculated spot and futures volume for the past year, and then applied their *highest fee tier* on both sides of the volume (for every $1 traded, they generate a fee on the taker and the maker. the fee rate is asymmetrical). Spot revenue worked out to $7.6B USD, perps revenue worked out to $13.8B This is an upper bound on the fees charged on volume. Binance also scams their users with a b-book, has DMM deals, etc. I don't want to get into all that today. But the final result is that they print somewhere in the range of $20B per year on fees. I guess CZ also has huge stockpiles of BTC and stuff. A 1% rise in BTC price probably means more for them than their actual fees, LOL. All this to say, I think $5.6B significantly hurts. See Google's stock price today. Their ads business slowed down a bit, and their stock tanked 10%. If binance was publicly traded, I imagine a similar affect would be demonstrated on their price. | |
| ▲ | yreg an hour ago | parent | prev [-] | | How much money do you think they are making? Because I really doubt this is peanuts to them. | | |
| ▲ | throw-qqqqq 36 minutes ago | parent [-] | | Binance has a market cap just shy of $100B, so a $5.8B sure hurts, but it’s not a showstopper I’d say. | | |
| ▲ | grey-area 14 minutes ago | parent [-] | | A market cap predicated on the price of bitcoin. A market cap is not funds available, it's just the valuation of the market, which is fickle. |
|
|
|
