In brief
- Binance unveiled the “Together Initiative,” setting aside another $400 million to reimburse users affected by recent crypto liquidations.
- Other partners in the BNB ecosystem have added another $328 million to help affected traders of meme coins and more on BNB Chain.
- BNB hit a new all-time high on Monday, but is down around 4.4% in the last 24 hours.
Crypto exchange Binance is injecting another $400 million back into the hands of users following the record-breaking $19 billion of liquidations that rocked crypto markets last week, sending prices of top assets plunging.
The exchange and other BNB ecosystem firms have now earmarked more than $700 million in compensation for affected users as a result of the recent liquidations, after already committing a separate $283 million to reimbursements.
“Talk is cheap,” posted Binance co-founder and former CEO Changpeng “CZ” Zhao on X. “$283 million compensation on Binance, $45 million recovery airdrop on BNB Chain and Four Meme, another $400 million recovery airdrop on Binance. Protect users.”
Of the firm’s latest $400 million reimbursement, called the “Together Initiative,” $300 million will be set aside and distributed in amounts between $4 and $6,000 to users who dealt with forced liquidations on the platform between October 10 and 11, with incurred losses of at least $50.
“The USDC amount will be determined based on an assessment of each user’s liquidation loss amount, loss ratio, and other multiple factors,” the announcement said. Distributions are expected to start within the next 24 hours.
The final $100 million of the Together Initiative is set aside for ecosystem traders and institutional investors that were severely impacted. The crypto exchange will use the $100 million to create a low-interest to help affected users kick-start trading again.
On Monday, Binance announced a $283 million reimbursement plan after some of its assets depegged, and display errors indicated sharp price drops.
On the same day, BNB Chain and Four Meme—a token launchpad on the network—announced a $45 million “reload airdrop” for up to 160,000 wallets that had traded meme coins on BNB Chain over the last week. The BNB Chain meme coin market briefly got hot last week, but many of those coins rapidly crashed in value.
Bitcoin dropped more than $15,000 on Friday, briefly dipping below $106,000 as a result of some of the record-breaking liquidations. It has since partially rebounded and is now changing hands at $113,338—down about 7% on the week.
BNB, on the other hand, is only down around 5% on the week and actually hit another new all-time high mark on Monday of $1,369. It is now changing hands at $1,220, rising more than 31% over the last month.
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