Binance announced a $400 million support initiative in the wake of Black Friday. $300 million will go to reimbursement vouchers for rekt traders, while the rest is for low-interest institutional loans.
Due to several platform failures and malfunctions, the community has disproportionately blamed Binance for massive liquidations. Still, the exchange’s efforts today are just one of several moves to help rebuild the community.
Binance Lends Support
Last week ended on a dark day for crypto, as Trump’s growing threats to expand his anti-China tariffs turned into a crisis. Sudden 100% tariff announcements created “Black Friday,” the worst day for crypto liquidations ever.
Binance took a lot of flak for its inaction and platform failures during the crash, and it’s announcing new support to help rebuild:
According to Binance’s announcement, this $400 million support initiative will consist of two components. $300 million will go to token vouchers for Binance users who got rekt on Black Friday.
If a trader lost more than 30% of their net crypto portfolio, they’ll get a voucher between $4,000 and $6,000 in the next 24 hours.
With the other $100 million, Binance aims to support the broader ecosystem. The exchange will establish low-interest loans to help institutional clients and other builders recover quickly and maintain internal stability.
Hopefully, these measures can help alleviate any liquidity crisis caused by the crash.
What Caused the Black Friday Crypto Crash?
Over the last few days, Binance has been working to support the community after Black Friday. Indeed, its platform failed in a few key ways. Not only did users report account freezes and flash crashes, but several malfunctions caused some stablecoins to de-peg.
Since then, Binance has been airdropping funds to support liquidated BNB meme coin traders, but this initiative is substantially larger.
To be fair, some analysts have argued that it’s inaccurate to disproportionately blame Binance, as other exchanges contributed to Black Friday.
Either way, though, Binance is doing its best to help rebuild the system. Hopefully, these measures can help blunt the ongoing downward momentum in crypto markets.
