Crypto exchange Binance is making headlines again, this time by injecting a significant $400 million back into the hands of its users. This move follows a tumultuous week in the crypto markets, which saw an astounding $19 billion in liquidations that sent the prices of major cryptocurrencies spiraling downwards.
This latest initiative is part of Binance’s broader effort to support users impacted by the recent chaos. Alongside other companies within the BNB ecosystem, the exchange has earmarked over $700 million as compensation for those affected by these unusual market conditions. This includes a separate $283 million reimbursement already announced to mitigate losses.
Changpeng “CZ” Zhao, Binance’s co-founder and former CEO, voiced a strong commitment to user protection through a recent post on X: “$283 million compensation on Binance, $45 million recovery airdrop on BNB Chain and Four Meme, another $400 million recovery airdrop on Binance. Protect users.” This mantra encapsulates the exchange’s mission after the recent turmoil.
Of the newly pledged $400 million, known as the “Together Initiative,” a whopping $300 million will be allocated to users who faced forced liquidations on the exchange between October 10 and 11 and incurred losses of at least $50. Users can expect compensation amounts ranging from $4 to $6,000, calculated based on each user’s liquidation loss and other factors.
The structure of this initiative highlights Binance’s approach to navigating the fallout from market fluctuations. The final $100 million of the Together Initiative is aimed at supporting ecosystem traders and institutional investors who faced significant losses. Binance will deploy this fund to establish low-interest loans, helping impacted users get back into trading.
Following the dramatic liquidations, Binance had recently announced a separate $283 million reimbursement, which was triggered by a glitch that caused some of its assets to depeg, leading to erroneous price displays and spiking volatility.
In a related effort, BNB Chain and Four Meme—a platform for launching meme coins on the BNB network—jointly declared a $45 million “reload airdrop” aimed at up to 160,000 wallets that traded meme coins during the preceding week. The meme coin market on BNB Chain experienced a brief surge, but many assets quickly plummeted in value.
As for market activity, Bitcoin saw a dramatic decline, dipping over $15,000 on Friday to briefly reach below $106,000, a result of the extraordinary liquidations. Though Bitcoin has shown signs of recovery, it is currently trading around $113,338, reflecting a 7% downturn for the week.
Comparatively, BNB has fared a bit better, suffering only a 5% decline over the week. In fact, it even reached a fresh all-time high of $1,369 on Monday before settling around $1,220—up 31% over the last month. This resilience showcases the ongoing dynamism within the Binance ecosystem.