Understanding Secure Asset Fund for Users (SAFU) in Crypto
The Secure Asset Fund for Users (SAFU) is an insurance fund created by Binance, a prominent cryptocurrency exchange, to address emergencies.
Binance allocated 10% of all trading fees to the SAFU fund in July 2018 to safeguard user funds.
The funds are securely stored in a separate cold wallet, ensuring their protection.
As of January, 2022, the Secure Asset Fund for Users was valued at one billion dollars, according to Binance.
Meaning of “Funds Are SAFU”
The phrase “Funds are SAFU” originated from a play on the word “safe” and gained popularity after a YouTube video titled “Funds are Safu” was uploaded by content creator Bizonacci in 2018.
The video responded to a tweet by Changpeng Zhao, the CEO of Binance, who reassured users that their funds were secure during an unscheduled maintenance period.
The video went viral and contributed to the emergence of the “Funds are SAFU” meme.
Origins of “Funds are SAFU”
On March 7, 2018, Binance users experienced an unscheduled maintenance period that prevented them from accessing their accounts.
The maintenance was prompted by a vulnerability in the SYS/BTC trading pair, which hackers exploited.