empty
31.01.2022 04:05 PM
Crypto Market Protects Investments: Binance Creates $1B Insurance Fund

Binance Holdings Ltd. created a $1 billion insurance fund for its users on Monday, January 31. This seems to be a necessary measure due to the growing volume of cybercrime, in particular, hacking of cryptocurrency trading platforms.

The world's largest cryptocurrency exchange by trading volume decided to allocate money for an emergency insurance portfolio back in July 2018. Most recently, there was a consolidation of all intra-fund funds in one place.

This image is no longer relevant

In general, the insurance fund was valued at $1 billion (based on data as of the opening of trading on January 29).

"We always said 'funds are safe', and today the Binance Secure Asset Fund size acts as an effective safeguard as well as protection for users against such unlikely issues," said Binance Founder and CEO Changpeng Zhao in a service note.

It should be noted that cybersecurity breaches have become ubiquitous on cryptocurrency trading platforms, causing many investors to become disillusioned and companies to suspend services to address network vulnerabilities.

Most often, vulnerabilities relate to the security of accounts, and only to a negligible extent - to the very calculations using blockchain technologies.

These efforts mark an attempt to allay user fears following a series of cyberattacks that included the exchange itself in 2019.

In January alone, customer accounts holding about $34 million in cryptocurrencies and cash were hit by unauthorized withdrawals, Crypto.com reported.

For example, last week hackers seized over $80 million worth of digital assets from the Qubit Finance blockchain extension.

In my opinion, this is also primarily a warning of a system in which transactions can be tracked not only by anonymous serial codes but by personal identification data because this link is the most vulnerable to fraudsters. Data theft occurs from devices infected with viruses, as well as at the stage of transferring/cashing out funds. And compliance with measures to ensure the protection of your data is more relevant than ever.

However, the opposite opinion is already sounding that linking to personal identifiers will make it possible to secure funds freely roaming around the world in the form of tokens.

Nevertheless, in general, this is positive news, which will allow BTC and its colleagues to strengthen their positions in the next 2 trading days.

Egor Danilov,
Analytical expert of InstaForex
© 2007-2025
Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

BTC/USD Analysis on April 29, 2025

The wave pattern on the 4-hour chart of the BTC/USD has become somewhat more complex. We observed a corrective downward structure that completed its formation around the $75,000 mark. After

Chin Zhao 11:30 2025-04-29 UTC+2

$200,000 for Bitcoin by Year-End

While Bitcoin is still struggling to break through the $95,000 level — despite all the conditions being in place — Standard Chartered believes that in the second quarter, the leading

Jakub Novak 11:09 2025-04-29 UTC+2

Trading Recommendations for the Cryptocurrency Market on April 29

Bitcoin and Ethereum Buyers Are Trying to Control the Market — and So Far, They're Doing Quite Well However, it's important to note that the longer we remain below $95,000

Miroslaw Bawulski 08:51 2025-04-29 UTC+2

Bitcoin at the Start of a New Rally: When to Expect $120,000 and Beyond

After a week full of turbulence, the cryptocurrency market seems to have taken a deep breath. The Fear and Greed Index has been recorded at 51 — a rare neutral

Ekaterina Kiseleva 01:15 2025-04-29 UTC+2

XRP futures to launch on May 19

Over the weekend, Bitcoin experienced a brief dip but soon returned to the $94,000 level. Ether also faced some pressure, but managed to hold its ground. Surprisingly, XRP saw only

Jakub Novak 16:14 2025-04-28 UTC+2

Trading Recommendations for the Cryptocurrency Market on April 28

Bitcoin is being pressured, but it still holds up quite confidently. After rebounding from the $92,000 mark, the first cryptocurrency returned to the $94,000 area, maintaining good growth prospects

Miroslaw Bawulski 08:19 2025-04-28 UTC+2

Bitcoin – Technical Situation Analysis

Currently, bullish players are attempting to change the situation and achieve bullish optimism for April. Last week, resistance at the final level of the weekly Ichimoku cross (93344) was tested

Evangelos Poulakis 03:51 2025-04-28 UTC+2

Trading Recommendations for the Cryptocurrency Market on April 25

Yesterday's unsuccessful attempt to stay above $94,000 demonstrates that there is still significant buying interest. Ethereum is also holding up quite well, although yesterday's correction during the European session likely

Miroslaw Bawulski 08:56 2025-04-25 UTC+2

Technical Analysis of Intraday Price Movement of Polkadot Cryptocurrency, Friday April 25, 2025.

With the condition of the Stochastic Oscillator indicator which is already above the Overbought level (80) even though it is currently still moving above the WMA (30 Shift 2) which

Arief Makmur 07:02 2025-04-25 UTC+2

Technical Analysis of Intraday Price Movement of Solana Cryptocurrency, Friday April 25, 2025.

Although currently the Solana cryptocurrency is moving in a strengthening condition which is indicated by its price movement moving above the WMA (30 Shift 2) but with the appearance

Arief Makmur 07:02 2025-04-25 UTC+2
Can't speak right now?
Ask your question in the chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.