Considering the risk of possible exploit in the network, the giant exchange Binance introduces Security Asset Funds for Users (SAFU) valued at $1 billion. The emergency insurance fund is comprised of BTC, BUSD, and BNB that secures exchange users’ interests and aims to back victim users in a possible theft.
The SAFU funds are gathered, allocating 10% of all trading fees accumulated on the Binance network. And it makes the platform able to remedy the situation where users’ funds get compromised.
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Although Binance has worked so much to bring a high level of security, it also understands the potential of security breaches where hackers can access users’ accounts illegally or scammers can use common scams to fraud people online. Hence, the need for an insurance package would assure users in hacking emergencies.
A statement by Binance reads;
Creating a safety pool to protect users’ funds is paramount to maintaining trust and transparency within the ecosystem, especially in the minds of customers and regulators. When users know that their funds are insured against potential breaches, they will be encouraged and confident to continue participating and trading adequately.
Binance Influences Others to Adopt Security Measures
The leading cryptocurrency exchange also urges other centralized exchanges to raise these types of funds and publish their insurance funds wallet addresses. It secures the ecosystem and demonstrates to regulators and stakeholders how sincerely crypto platforms collectively secure and manage users’ funds, said Binance.
Today, crypto ecosystems have become the most preferred means of investment to generate passive incomes through the long-term store of value. Now, more people seek to enter the digital world that provides financial freedom and viable investment alternatives to those looking to diversify their fortunes.
So, to ensure sustainable participation in the space, crypto platforms must ensure that users’ funds are protected in the situation of a possible mishap.
Partnering with the latest tech companies will also help crypto platforms achieve this goal. They can ensure the integrity of transactions and users’ accounts by monitoring the single activity performed on the platform, so a suspicious entity can be flagged immediately.
There’s also a need to establish fortified customer service that employs a team of passionate experts to satisfy the community over existing vulnerabilities, possibly leading to retrieving lost funds of users. Crypto exchanges can also spread the education of security topics such as recognizing a pyramid and Ponzi schemes alongside learning about ransomware.
It concludes that one of the critical steps in securing crypto exchanges over growing cyberattacks is customer support to guide users about tech innovation, education, and insurance. That means users play a crucial role in keeping hackers at bay.
Customers’ adoption of little security measures like 2FA (Two-factor Authentication), increasing device security, and enhancing password management goes a long way to protect users’ accounts against cybercriminals. And in turn, it prevents theft.
Featured image from Pixabay and chart from TradingView.com