Yanuki
Finance / Crypto
Binance is set to distribute $300 million in token vouchers and provide $100 million in low-interest loans to crypto traders affected by the recent market crash on October 10 and 11. This initiative aims to rebuild confidence and alleviate...
The crypto market experienced a severe downturn on October 10 and 11, triggered by factors including President Trump's comments on imposing 100% tariffs on Chinese imports. Bitcoin dropped from $122,000 to as low as $104,000, with other cryptocurrencies experiencing even larger declines.
This led to a record $19 billion in liquidations, affecting over 1.6 million accounts. Stablecoins like Ethena’s USDe briefly lost their peg on Binance, dipping to 65 cents. Market makers pulled back, exacerbating the sell-off.
Binance's "Together Initiative" aims to mitigate the damage by providing financial assistance to affected users. The $300 million in token vouchers will be distributed starting October 15, while the $100 million loan fund will support institutional users.
This event underscores the volatility of the crypto market and the potential for significant losses due to leveraged trading. Traders are now increasingly hedging their positions, with options activity on the rise.
Users who incurred forced liquidation losses of $50 or more, representing at least 30% of their net assets before the liquidations, are eligible for token vouchers. Institutional users severely impacted can apply for low-interest loans.
The $300 million in token vouchers will be distributed starting October 15. Institutional users can apply for low-interest loans through their dedicated account managers.
Do you think Binance's initiative will effectively restore confidence in the crypto market? Share your thoughts in the comments below!
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