Binance, the world’s largest cryptocurrency exchange, made a recent announcement regarding the conversion of the remaining funds from its Industry Recovery Initiative. The industry has migrated from native crypto like BTC, BNB, and ETH to the BUSD stablecoin. This move is estimated to deal a substantial $1 billion setback to crypto bears.
Changpeng Zhao, CEO of Binance, took to Twitter to share the news and emphasized that some fund movements would occur on-chain, ensuring transparency. The action by Binance demonstrates the exchange’s confidence in the further expansion of the crypto industry.
After hearing the announcement, the cryptocurrency community is filled with excitement. They believe this decision could potentially trigger a sudden upsurge in BTC, ETH, and BNB. CEO of CryptoQuant, Ki Young Ju, anticipates $1B buying pressure for specific cryptocurrencies from this announcement.
Struggles For U.S.-based Crypto Businesses
Binance decision comes when U.S.-based cryptocurrency businesses face mounting struggles due to banking challenges posing a significant obstacle.
Recently, New York-based financial institution Signature Bank which had attempted to solicit cryptocurrency deposits, had to close suddenly because regulators cautioned that maintaining its operations could cause instability in the entire financial system.
In addition, tech-friendly Silicon Valley Bank and Silvergate faced similar issues last week. The situation has caused traders like Scott Melker to express concern about the future of crypto businesses in the U.S.
Following those events, U.S. regulators have implemented actions to enhance trust in the banking system. Investors face uncertainty and unpredictability due to the financial system’s vulnerability and expected interest rate hikes. Nonetheless, they continue to grapple with these challenges as they make investment decisions.
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Binance’s conversion of Industry Recovery Initiative funds to cryptocurrencies boosted market sentiment and renewed hope for crypto market growth. However, the challenges faced by U.S.-based cryptocurrency businesses serve as a reminder of the uncertainty and unpredictability surrounding the market.
The author’s views are for reference only and shall not constitute any investment advice. Please ensure you fully understand and assess the products and associated risks before purchasing.
