Binance announced a new $400 million compensation package for users and institutions affected by the strong market volatility and technical failures on October 10, when there were sharp price drops and massive liquidations.
The company launched this Wednesday the “Together Initiative” project, which includes two programs: one of USD 300 million in the USDC stablecoin, aimed at retail users, and another of USD 100 million in low-interest loans for institutions and ecosystem partners.
“While we continue to work on the previously announced compensation plan, we have developed additional support to help users and the industry through this challenging time,” pointed out Binance in its official statement.
Regarding the first fund of the project, the exchange explained that will distribute between $4 and $6,000 in USDC to each eligible useraccording to the losses suffered. To access compensation, clients must meet certain requirements: having registered losses from forced liquidations between October 10 and 11 (UTC), with a minimum amount of $50, and that said losses represent at least 30% of their net worth as of October 9.
Users who already received compensation for the events of October 10 will not be able to access this new initiative.
The second component of the plan, aimed at institutions, will offer $100 million in low-interest loans for institutional users and ecosystem partners who were severely affected.
“We hope this will inject momentum into the recovery of ecosystem participants, alleviate liquidity pressures, and maintain operational stability for our partners,” they added from Binance.
“It is essential to rebuild trust,” Binance said
At the close of your ad, The firm acknowledged that its decision could generate divided opinions within the community, but emphasized that his priority is the users and the stability of the sector.
«To be clear, we do not accept responsibility for user losses. “We are doing this because we believe it is essential to rebuild trust in the industry.”
The company also took the opportunity to remind investors that the cryptocurrency market “is volatile and carries inherent risks,” and urged them to operate with caution.
On October 10, the exchange faced technical glitches during a general market crash, triggered by a global asset sell-off. Binance acknowledged that some modules of the platform experienced brief technical failures and that several products linked to the Earn program were temporarily detached from their reference value, causing unwanted liquidations.
As reported by CriptoNoticias, the company compensated part of those affected with more than 283 million dollars, in a process that was completed within 24 hours after the incident.