Binance is launching an emergency compensation program for $400 million after the ‘Black Friday’ crash. Out of this amount, $300 million will be allocated for vouchers for traders whose positions were liquidated during the drop. The remaining $100 million will go to cheap loans for institutions — to prevent the entire ecosystem from collapsing.
After technical failures, users unleashed criticism on Binance — the exchange was accused of mass liquidations and unpreparedness for stress loads. The announced program is an attempt to at least partially quell this wave of criticism and retain the trust of the community, which has been severely shaken.
Binance supports the affected
The Friday crash hit the crypto market so hard that it is already being called the harshest liquidation day in history. It all started with Trump’s sharp statement about 100% tariffs on Chinese goods.
Binance found itself at the center of the scandal: stuck orders, lags, errors in displaying balances. While the exchange was silent, traders were losing millions.
Now Binance is coming out with compensation. $400 million has been allocated for support. Of this, $300 million will be directed to vouchers for the affected. If a trader’s losses exceeded 30% of their portfolio, within a day they will receive from $4,000 to $6,000.
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The remaining $100 million will go to institutions — the exchange is launching a preferential lending program.
This is essentially an attempt by Binance to buy off reputational damage and stabilize the market. It is still unclear if this will work.
What caused the ‘Black Friday’ crash
After the sharp market drop, Binance began to restore user trust. There were indeed quite a few problems: many had frozen accounts, there were sharp price jumps, and some stablecoins temporarily lost their peg to the dollar.
Previously, the exchange had already conducted airdrops for traders trading memecoins on the BNB network. However, the current initiative is noticeably larger in scale and affects a much wider audience.
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At the same time, some analysts believe that blaming only Binance for what happened is not entirely correct. During the crash, failures were also recorded on other platforms, which only intensified the effect.
Nevertheless, Binance is acting quickly, trying to minimize the consequences of the crisis and stabilize the market situation. The new package of measures is an attempt not only to compensate for losses, but also to prevent the ecosystem from further collapse.
