The crypto industry continuously evolves and so do the fraudulent practices that target it. This means that the investors’ assets are never 100% safe, even when stored with the most advanced security solutions. To ensure that people feel more confident about the protection of their crypto funds, Binance created the Secure Asset Fund for Users.
What Is The Secure Asset Fund For Users?
The Secure Asset Fund for Users (SAFU) is an emergency insurance reserve established in July 2018 by Binance, the world’s leading crypto exchange. SAFU’s goal is to protect Binance traders who experience hacks or data breaches by compensating their losses caused by the platform’s security failures.
You may also see users write “funds are SAFU”, which means the same as “funds are safe” in cryptoverse slang. This term was born after an unplanned maintenance run, during which Changpeng Zhao, the CEO of Binance, wrote a tweet saying “Funds are safe.” Then, a Youtuber named Bizonacci created a viral video that mocked it, called “Funds are SAFU.”
What You Need To Know About The Secure Asset Fund For Users
After creating the Secure Asset Fund for Users, Binance transferred a percentage of trading fees to it in order to grow the reserve to a level sufficient for safeguarding its clients. Thus, the Secure Asset Fund for Users definition encompasses and promotes such values as trust, integrity, and transparency.
SAFU wallets contain a combination of BTC, BUSD, and BNB, the company’s proprietary cryptocurrency, which backs up 44% of the fund. The value of the assets in Binance’s Secure Asset Fund for Users fluctuates depending on the market.
For instance, on January 29, 2022, the exchange announced that the Secure Asset Fund for Users was worth $1B. However, due to unstable market conditions, that value dropped to $735 million at some point, so Binance decided to top the balance back to $1B on November 9, 2022.
