Michaela
Crypto exchange Binance has unveiled a $400 million relief initiative to aid traders impacted by last Friday’s crypto market downturn, while emphasizing it does not assume responsibility for user losses.
Key points:
- Binance launched a $400M relief program, including $300M in token vouchers and a $100M low-interest loan fund, to support traders impacted by last Friday’s crypto crash.
- BNB Chain added a $45M “reload airdrop,” bringing total recovery measures from Binance and BNB Chain to $728M, including prior post-crash compensation.
- Industry critics claim Binance underreported liquidation data during the sell-off, highlighting ongoing concerns about transparency and reliability in crypto market infrastructure.
Binance announced that $300 million in token vouchers, valued between $4 and $6,000, will be distributed to qualifying users. To be eligible, traders must have experienced forced liquidations on futures or margin positions during the sell-off from Friday 00:00 UTC to Saturday 23:59 UTC, with losses of at least $50 representing a minimum of 30% of their total net assets. Eligibility will be determined using a snapshot from Thursday at 23:59 UTC, and distributions are expected to be completed within 96 hours.
Binance will also set up a $100 million “low-interest loan fund” aimed at supporting ecosystem and institutional users affected by the market volatility, helping to ease liquidity strains. The exchange emphasized that it does not assume responsibility for users’ losses, framing the initiative as a measure to restore confidence across the crypto industry.
Simultaneously, BNB Chain, the blockchain platform developed by Binance, announced a $45 million “reload airdrop” on Monday to reimburse users who suffered losses trading meme coins during the recent market downturn.
Binance and BNB Chain have unveiled a total of $728 million in relief measures, encompassing the $45 million reload airdrop, $283 million in immediate post-crash compensation, and the newly introduced $400 million industry support fund.
In the wake of Friday’s crypto market crash, Binance has faced intensified scrutiny from users and industry observers alike.
Jeff Yan, founder of the perpetual decentralized exchange Hyperliquid, alleged that major centralized exchanges, including Binance, minimized the reported extent of user liquidations during last Friday’s market sell-off.
“Some CEXs publicly document that they dramatically underreport user liquidations. For example on Binance, even if there are thousands of liquidation orders in the same second, only one is reported,” Yan wrote in an X post.
Yan also shared a screenshot from Binance’s developer forum showing that public data only reflects the most recent liquidation order for each trading pair within a 100-millisecond window. If no liquidations occur during that timeframe, no updates are published.
The episode spotlights the growing pains of the crypto market, emphasizing the tension between rapid innovation and the need for transparent, reliable infrastructure that traders can trust.
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Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
