Amid the concern mounting around stablecoins, Binance co-founder and CEO Changpeng “CZ” Zhao tweeted on March 13 that with the “changes in stablecoins and banks,” the exchange will be converting the remaining $1 billion funds in its Industry Recovery Initiative to “native crypto.“
The native cryptocurrencies listed by CZ included Bitcoin (BTC), BNB (BNB) and Ether (ETH). He then posted links to the hash ID for the BTC and ETH transactions, saying $980 million took 15 seconds to move with a $1.98 transaction fee.
In response to the move by the Binance co-founder, Crypto Twitter had mixed reactions. Some praised the decision, calling it “pure gold,” and offered a suggestion to use alternative currencies to peg stablecoins:
On March 10, Circle, the company behind USDC, disclosed it had around $3.3 billion tied up at the failing SVB, which caused the initial depegging event. However, by March 13, USDC had bounced back toward its $1 peg — currently hovering around $0.99.
Circle also has an undisclosed amount of reserve funds stuck in Silvergate, another United States-based crypto-friendly bank that went bankrupt.
Since the events began unfolding on March 10, the crypto space has been on edge as to what will happen next. Twitter users have claimed that there is “nobody left to bank crypto companies.”