Popular on-chain analyst Willy Woo raised concerns over Binance’s Secure Asset Fund for Users (SAFU) Insurance Fund. He believes it’s not safe to put “incidence-correlated BNB” in the SAFU fund. Willy Woo compares it with the crypto exchange FTX having an insurance fund backed by FTT.
Is It Safe to Have BNB in Binance SAFU Fund?
Willy Woo in a tweet on November 25 shared that Binance’s Secure Asset Fund for Users (SAFU) now consists of $367 million worth of BNB, which is 44% of the fund. Moreover, it has $300 million worth of Binance’s dollar-pegged stablecoin BUSD and just $270 million worth of Bitcoin. It has fallen significantly below $1 billion amid price fluctuations.
Willy Woo believes the SAFU insurance fund with 44% of its reserves backed by BNB is not safe. He compares it with FTT, the native token of FTX crypto exchange, which plummeted massively amid the FTX crisis. It would be like FTX having an insurance fund backed mostly by FTT tokens.
“While I commend Bina
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