Binance buys dip with first $100M Bitcoin purchase from $1B SAFU fund

[ContentWriter]

Binance said they will convert customers protection money, SAFU (that is worth $1 billion) to bitcoin. The market really dipped recently but I think Binance used this to boost bitcoin investors confidence for them not to panic. I think this is also good for Binance as bitcoin price will increase.

I am not sure about the news but if you read it, you will see the txid of the transaction which is the second link below.

https://cointelegraph.com/news/binance-buys-dip-first-100m-bitcoin-safu
https://www.blockchain.com/en/explorer/transactions/btc/b1231fa059a73d7408a0f40fdc41f603d16f520609a4890ee33763a294385490

The remaining stable coin will be converted to bitcoin in the next 27 days.

What exactly do you mean by Binance boosting Bitcoin investor confidence? One way or the other Bitcoin price is bound for a rebound. What I believe the Binance action is geared towards is to more of consolidation of their BTC position taking a cue from companies like Strategy. As an established player in the market, Binance knows that not even their BNB comes close to Bitcoin in terms of investor confidence and trust. They're also strategically positioning themselves knowing that the next spike in the price of BTC is only a matter of time. This is mostly about the company, not about boosting investor confidence IMHO.

[_act_]

What exactly do you mean by Binance boosting Bitcoin investor confidence? One way or the other Bitcoin price is bound for a rebound.

Some big people that announce buying bitcoin when the market was crashing just as Binanace announced on February 2nd that they want to use $1 billion of stable coins to buy bitcoin in the next 30 days can increase investors confidence. Although what we noticed next was that bitcoin fall more and got below $73000 before it increased back to almost $77000.

[Antotena]

I believe that this change shows that Binance is not afraid of complete crash of market anymore, and its insurance fund allows it to purchase drop and steady the system.
Although this does mean value of this fund will now go up and down along with price of Bitcoin, it is strong sign to regular investors to remain calm and trust smart money leader next time the market looks shaky. And I think they are just saving money with investment. If they are investing $1 billion so I am sure that they will get 5 to 10x after 5 to 10 years.

Binance is a bloody hypocrite company run by cabals that don't have the interest of people. As it is now, Binance doesn't have the attention again because people are beginning to understand the hypocrite behind the company and how they have dominated the crypto industry, kill many projects, nobody want to associate anything with them which is a good thing. Look at all coins Binance has listed since last year to now. Almost all of them has lose their value.

The Safu they are doing and buying back is just a strategy to win back people's trust and want to use Bitcoin to hedge it, so that as Bitcoin price continues to go up, the Safu funds will be protected. If they have done this when Bitcoin was around $30k, they will have 2x of that amount in Bitcoin by now which is even an advantage for them because it doesn't look like Binance is going to fail anytime soon. Safu here is just an insurance and that's all, if nothing happens they will be the ones to use the money.

[henry_of_skalitz]

What exactly do you mean by Binance boosting Bitcoin investor confidence? One way or the other Bitcoin price is bound for a rebound.

Some big people that announce buying bitcoin when the market was crashing just as Binanace announced on February 2nd that they want to use $1 billion of stable coins to buy bitcoin in the next 30 days can increase investors confidence. Although what we noticed next was that bitcoin fall more and got below $73000 before it increased back to almost $77000.

It may be read in such a way, however.. Big investors don't follow such signals, imo, or only some of them do.. Smart money moves in mysterious ways and I think they look more at the broader picture - the economics, the cuts, and so on.

Binance work is too in the equation, but, it's not the main thing.. only pushing the narrative a bittt further to the Bull.

[Satofan44]

This was measured via Truflation which is more now than CPI.
CPI is behind and could still show that we have a relatively high inflation even if real life data seems otherwise.

The market is still reacting to past data of December and their actions would have reduced measured inflation.

You didn't get my point at all. As I was saying, if this data is true then the next CPI numbers will be great. We will find out very soon. Once CPI comes out, and if it is according to the Truflation data, then the market will start responding very differently and we should see a rate cut or even an emergency rate cut soon.

The same reason you mentioned  There are many exchanges that got hacked and scammed (FTX did affect me then)

The thing is, if many exchanges scammed or got hacked, then we should appreciate those with which these things didn't occur. We need exchanges, and the same issues happen with DEXes too so there is no escaping these problems.

Focus on Binance since I had some history with them some years ago that I'm still bitter about hence why I added bias.

I was asking for information about that.

APompliano stated that deflation is a bigger risk than inflation which imo depends on who

We can debate this in general and various aspects, but for the current system deflation is a big no. It would collapse countries all over the world, so it is more dangerous. Since even high inflation, even if it hurts a lot the average citizen, does not cause a complete collapse like a deflationary spiral would. Complete economic collapse will lead to massive job losses, famine, chaos.

They will do it in bulks, so, I don't think it will have an effect that much, as the cap is a trillion (and much more than that).

You have no idea what you are saying. A single entity is buying $1B of Bitcoin and you are dismissing it as meaningless. How entitled and ungrateful people have become.  

They can't do that. The SAFU fund is supposed to be for reimbrusing users in case the platform gets hacked. What happens in the case that Bitcoin takes a heavy dip (hypothetically), and then a hack happens which steals so much money that the (devalued) SAFU fund cannot cover it? Then Binance will be toast.

Triggering a bigger crypto crash.

They are prioritizing short-term profits over long-term market stability.

Of course they can do that, what gives you any power to claim otherwise? It is a private business and if they wanted to turn that $1B into cash and throw it into a river, they can do that and it is their decision. Your counterargument fails for several reasons:
1) Most balances are in Bitcoin. They can reimburse directly Bitcoin balances from their Bitcoin reserve.
2) They can build a secondary SAFU fund after completing this. They have a lot of profit, nothing prevents them from doing this.
3) If Binance is hacked in orders of magnitude that are several billions or more, that means that the whole cold storage system is compromised and therefore the SAFU fund won't help at all. It is only meant to cover hot wallet losses or limited cold storage compromises.

[Chibit01]

According to what they shared, they had anticipated this scenario and had a response plan in place. Specifically, they committed to closely monitoring the fund and rebalancing it periodically. If the fund's value falls below $800 million, they will immediately inject additional capital to bring the fund back to $1 billion.

They plan to inject additional capital from where exactly? They might have the money but is it not better to sort out money to use for the same purpose rather than tempering with the exact money they set aside to protect customers, they are just putting out that safety information out there let it not be as if they don’t have back up plans, but in reality they just want to gamble gamble with customers fund, if it goes as plan they dump the bitcoin immediately they consider profit to be enough, all they care about is profit and nothing more.

[Hamza2424]

Binance said they will convert customers protection money, SAFU (that is worth $1 billion) to bitcoin. The market really dipped recently but I think Binance used this to boost bitcoin investors confidence for them not to panic. I think this is also good for Binance as bitcoin price will increase.

If that's what they really wanted to do then that's very sweet of them but bro we as coiner or non coiners should not make decisions with Binance we should stay independent from them and make our own decisions because they are buying now because btc is cheap and they are aware that btc will be in this phase and more dip phases are on the way so they have already start to buy btc.

They are doing it for themselves but I don't know the reality. So, no comments on why but what they are doing is really good for the long term demand of btc.

[Satofan44]

They plan to inject additional capital from where exactly? They might have the money but is it not better to sort out money to use for the same purpose rather than tempering with the exact money they set aside to protect customers, they are just putting out that safety information out there let it not be as if they don’t have back up plans, but in reality they just want to gamble gamble with customers fund, if it goes as plan they dump the bitcoin immediately they consider profit to be enough, all they care about is profit and nothing more.

Complete nonsense, don't write such lies here. These are not customer funds, they can do whatever they want with them. Do not be entitled and spoiled children, you do not get to dictate what Binance will do with any part of its business whether with the SAFU fund or with anything else. You have not accomplished anything at all in your life and you think that you know best than people who are running a very successful a multi billion dollar company?   Do not be an idiot. They can destroy the SAFU fund if they want to, it is all up to them and their discretion. Most exchanges do not have any real backup funds at all, so whether this one is in Bitcoin or in stablecoin makes very little difference. To make matters worse, most of you jeets are using shady and dumb exchanges that get hacked all the time and here you are whining about Binance.  

They are doing it for themselves but I don't know the reality. So, no comments on why but what they are doing is really good for the long term demand of btc.

They can do whatever they want. Social media has corrupted people and made them really entitled, usually until somebody puts them in their place they misbehave in all sorts of ways as is the case here. If Binance wants to burn the SAFU fund to the ground or invest it in McDonalds food that will go bad in 1 day it is up to them. This is exactly why most businesses do not care at all and pollute and destroy the world in the name of profit. Most of the humans do not deserve better and they get clingy and demanding like an obsessive stalker girlfriend. They should have never announced the SAFU fund to the public at all.

[NotATether]

According to what they shared, they had anticipated this scenario and had a response plan in place. Specifically, they committed to closely monitoring the fund and rebalancing it periodically. If the fund's value falls below $800 million, they will immediately inject additional capital to bring the fund back to $1 billion.

That is not a bad idea, but the question is whether they will actually follow through on their commitment. Because if Bitcoin suddenly drops sharply below $50k or $40k, injecting additional capital would not be easy.

This is exactly why I said it's a terrible idea to convert the SAFU fund to Bitcoin. Now Bitcoin is down to almost $60k and it looks like it's going to rip through $50k too.

Now what happens if Binance is also holding ALTS? Alts are going down even harder so the SAFU fund will be screwed.

[Dictator69]

Binance said they will convert customers protection money, SAFU (that is worth $1 billion) to bitcoin. The market really dipped recently but I think Binance used this to boost bitcoin investors confidence for them not to panic. I think this is also good for Binance as bitcoin price will increase.

I am not sure about the news but if you read it, you will see the txid of the transaction which is the second link below.
The remaining stable coin will be converted to bitcoin in the next 27 days.

So Binance chose the best month for their buyings is it a coincidence or do they have premium knowledge of the market and they knew this month would be full of volatility? Bitcoin has dropped more than 50% from its all-time high and Binance is benefiting from it.

Their $1 billion worth of bitcoin can easily generate them 2x in the next cycle, although it can generate even more, I am only considering 2x.

This is good news because demand is increasing but if everyone is buying, then why is the price is not shooting?

[Franctoshi]

Binance said they will convert customers protection money, SAFU (that is worth $1 billion) to bitcoin. The market really dipped recently but I think Binance used this to boost bitcoin investors confidence for them not to panic. I think this is also good for Binance as bitcoin price will increase.

I am not sure about the news but if you read it, you will see the txid of the transaction which is the second link below.

https://cointelegraph.com/news/binance-buys-dip-first-100m-bitcoin-safu
https://www.blockchain.com/en/explorer/transactions/btc/b1231fa059a73d7408a0f40fdc41f603d16f520609a4890ee33763a294385490

The remaining stable coin will be converted to bitcoin in the next 27 days.

Fast-forward back to march of 2023 when Binance also dipped hand in this same SAFJ wallet and bought Bitcoin was when Bitcoin saw it's Bottom, their first purchase was around $19500, and after the news broke out the following day Bitcoin saw a rise in its price from 19500 to 31k, and the price consolidate a bit came back to around $26k, Binance did another purchase of Bitcoin around $26k, after which the price surged all the way to 47k and that was the biggning of the bull market that just ended. I see such a purchase as a buy signal that the market bottom isn't far away from here, follow the liquidity (the smart money moves).

[Akbarkoe]

Binance said they will convert customers protection money, SAFU (that is worth $1 billion) to bitcoin. The market really dipped recently but I think Binance used this to boost bitcoin investors confidence for them not to panic. I think this is also good for Binance as bitcoin price will increase.

I am not sure about the news but if you read it, you will see the txid of the transaction which is the second link below.

https://cointelegraph.com/news/binance-buys-dip-first-100m-bitcoin-safu
https://www.blockchain.com/en/explorer/transactions/btc/b1231fa059a73d7408a0f40fdc41f603d16f520609a4890ee33763a294385490

The remaining stable coin will be converted to bitcoin in the next 27 days.

This is like their attempt to reap public confidence in bitcoin because bitcoin has recently found great doubt, the demand has even dropped so they made this decision, with such a buying strategy they know enough about the potential decline, I think this is also a good example for anyone in buying bitcoin in a situation like now, don't immediately enter at once, it takes several transactions to get a very good price, even though buying bitcoin with 1 take is not a problem for them.

I also think why they act like this is because of economic and geo-political uncertainty, especially the dollar which is a USDT/USDC stablecoin as a storage place, there is something they are afraid of, especially the value of the dollar itself which is feared to get hyper inflation.

[Swordsoffreedom]

I also think why they act like this is because of economic and geo-political uncertainty, especially the dollar which is a USDT/USDC stablecoin as a storage place, there is something they are afraid of, especially the value of the dollar itself which is feared to get hyper inflation.

USD is depreciating over time, and the world is looking for way to reduce its dependence on it. But in reality, the US remain the leading superpower and still hold ultimate power on the international stage. A scenario of the USD collapsing or hyperinflation is unlikely to occur in the near future

As far as I know, their Safu fund is primarily held in USDC. Therefore, a more plausible reason is that they are more concerned about the risk associated with USDC than with USD. Because, ultimately, stablecoins are not real USD and they carry significant risks.

[TastyChillySauce00]

So Binance chose the best month for their buyings is it a coincidence or do they have premium knowledge of the market and they knew this month would be full of volatility? Bitcoin has dropped more than 50% from its all-time high and Binance is benefiting from it.

Their $1 billion worth of bitcoin can easily generate them 2x in the next cycle, although it can generate even more, I am only considering 2x.

This is good news because demand is increasing but if everyone is buying, then why is the price is not shooting?

Because $1 billion is nothing in the market and they are doing conversion in phases to not affect the market that much so in reality it's probably few millions a day being converted to bitcoin. In this panic market, that won't put a dent.
From the looks of it seems like they want to hoard as much bitcoin while its cheap than trying to pump the price again. I guess it's part of their strategy to easily 2x or 3x their SAFU fund within a cycle.

[BALIK]

So Binance chose the best month for their buyings is it a coincidence or do they have premium knowledge of the market and they knew this month would be full of volatility? Bitcoin has dropped more than 50% from its all-time high and Binance is benefiting from it.

Their $1 billion worth of bitcoin can easily generate them 2x in the next cycle, although it can generate even more, I am only considering 2x.

This is good news because demand is increasing but if everyone is buying, then why is the price is not shooting?

As Francoshi said and as I have tried to understand. The truth is they have done this once before, in 2023. After they converted 1 billion BUSD in  SAFU fund into BTC, ETH, and BNB. A year later, BTC had increased by more than 250% compared to the price at which they bought it. I did not think it was such a coincidence, and perhaps they know something we do not.

Binance is buying, but institution and ETF are selling heavily. The amount of bitcoin being sold is much greater than the amount being bought, so its no surprise that the price is not rising.

https://www.binance.com/en-AE/square/post/35776150024985

[Akbarkoe]

I also think why they act like this is because of economic and geo-political uncertainty, especially the dollar which is a USDT/USDC stablecoin as a storage place, there is something they are afraid of, especially the value of the dollar itself which is feared to get hyper inflation.

USD is depreciating over time, and the world is looking for way to reduce its dependence on it. But in reality, the US remain the leading superpower and still hold ultimate power on the international stage. A scenario of the USD collapsing or hyperinflation is unlikely to occur in the near future

As far as I know, their Safu fund is primarily held in USDC. Therefore, a more plausible reason is that they are more concerned about the risk associated with USDC than with USD. Because, ultimately, stablecoins are not real USD and they carry significant risks.

It is true that today the USD is actually getting stronger but there are still concerns in my opinion even though it does not become the main point of basic thinking why they do that, and about the concern that the USDC / stablecoin they hold will cause problems because of many things in the background of the stable coin itself this is also my previous consideration, there is always a great potential risk, for example like Terra USD in the previous cycle which experienced bad events if the facts were revealed, buying against bitcoin is a conservative measure of the many risks posed by stable coins, although bitcoin has price fluctuations but it is enough for them to be able to get a large profit if bitcoin returns to strengthening the price they can get every cycle, holding stablecoins in the long run is not profitable, it is actually detrimental.

[KiaKia]

The SAFU fund was supposed to be used only if the exchange gets into some trouble with customers funds, or am I missing something? This can only make sense if the money is already in billions of dollars.

If any hacker steals that much they will be hunt down, anyways, I still just don't understand the whole manipulation games from Binance exchange in 2025, they have no good reputation anymore.

They are now one of the top exchange in crypto space, unlike before when they are one of the best, I know that many people still accept Binance as the best exchange, to me it's not anymore.

[Dictator69]

As Francoshi said and as I have tried to understand. The truth is they have done this once before, in 2023. After they converted 1 billion BUSD in  SAFU fund into BTC, ETH, and BNB. A year later, BTC had increased by more than 250% compared to the price at which they bought it. I did not think it was such a coincidence, and perhaps they know something we do not.

Binance is buying, but institution and ETF are selling heavily. The amount of bitcoin being sold is much greater than the amount being bought, so its no surprise that the price is not rising.

Thank for sharing your insights, I did not knew they have done this before and that time they must have invested when the market was down. I cannot remember the situation of bitcoin in 2023 but I have this impression in my memory that it was down and bear season.

They invested in good tokens, and all of them have pumped at least 2x to 4x.

They know something definitely but the buying pressure is also not as high as the selling pressure. But why institutions are selling now in such low rates while they should be buying instead of selling?