Binance to launch crypto industry recovery fund to rescue crypto projects facing liquidity issues.
Binance, the largest crypto exchange in terms of daily trading volumes established in 2017, is reportedly planning to launch a crypto industry recovery fund.
According to a tweet shared by Binance founder and CEO Changpeng Zhao, the fund would be used to rescue crypto projects facing liquidity issues. In his tweet, Zhao noted:
To reduce further cascading negative effects of FTX, Binance is forming an industry recovery fund, to help projects who are otherwise strong, but in a liquidity crisis.”
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Changpeng Zhao highlighted that the company aims to share more details about the project in the upcoming weeks. Binance CEO emphasized that those who believe that they qualify to receive the support should contact Binance Labs.
In a follow-up tweet, Zhao noted that the company is looking for companies that want to co-invest in the project. Based on some reports, Tron founder Justin Sun revealed that Tron, Poloniex, and Huobi Global are looking to help Binance with the initiative.
Binance CEO also discussed the newest initiative and FTX situation at the B20 Summit in Indonesia, claiming that he expects industry and crypto regulators to make efforts to stabilize crypto markets.
We will try to collect the other industry players together to form an industry association globally, and try to deal with some of the common standards in business.”
Binance and its CEO Changpeng Zhao were actively involved in the FTX saga. On November 6th, Zhao used Twitter to announce that Binance is planning to liquidate all of its FTX native token, FTT, holdings. After the news about Binance’s plans started surfacing, the price of FTT drastically fell, with many investors moving their funds out of the now-bankrupt crypto exchange FTX.
The next day, to the surprise of the crypto community, the former FTX CEO Sam Bankman-Fried announced that Binance was planning to acquire the company. However, the celebration didn’t last long, as a little over 24 hours after announcing the plans to purchase FTX, Binance backed away from the deal. At that time, the company claimed that FTX issues were beyond Binance’s “control or ability to help.”
At the time of writing, Binance native token BNB retails for $281.65, recording a 1.17% growth in the last 24 hours.