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Secure Asset Fund for Users, or SAFU in short, is an initiative by Binance that takes a portion of trading fees and accumulates it in a fund. This fund will be used to compensate users if the need arises, i.e., if the platform is hacked or investors lose money through some technical exploit.
Last year, the cryptosphere lost nearly $14 billion to scams and hacks; that’s nearly double the figure from 2020. It is a rising concern among investors, with so many tales of people losing their everything to these exploits that are circulating the internet.
Naturally, public trust will only stay strong if there are measures to curb, rectify or compensate for these scams. As the largest crypto exchange in the world, Binance took the lead in protecting its users’ interests and safeguarding them from such unfortunate scams through an initiative known as SAFU.
Let’s learn more about what SAFU is and how it works.
What is SAFU?
Secure Asset Fund for Users, or SAFU in short, is an initiative by Binance that takes a portion of trading fees and accumulates it in a fund. This fund will be used to compensate users if the need arises, i.e., if the platform is hacked or investors lose money through some technical exploit.
SAFU was created as an emergency insurance fund back in 2018. Since then, Binance has been tucking away a tiny percentage of every transaction fee into the fund. Earlier this year, it was revealed that the SAFU fund was…
