Binance will launch a new “industry recovery fund” to help prop up crypto projects that might face liquidity crunches.
- In his recent tweet on 14th November 2022, Changpeng Zhao announced Binance’s plan to help reduce the adverse effects of the FTX liquidity crunch.
- Binance, the largest crypto exchange by volume globally, will be launching an ‘industry recovery fund’. The funds will later support projects that might fall into a situation similar to that of the FTX exchange.
- The funds would assist “Projects who are otherwise strong, but in a liquidity crisis,” CZ 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. More details to come soon. In the meantime, please contact Binance Labs if you think you qualify. 1/2
— CZ 🔶 Binance (@cz_binance) November 14, 2022
- The Binance CEO, through another tweet, invited projects that would qualify for funding to apply. He also urged abled investors to back up the recovery fund.
- Since the FTX saga, the crypto markets have plummeted to severe levels. Several sectors have been affected including the investors, the DeFi projects, crypto exchanges and startups.
- The chaos has shaken the confidence of investors in the crypto space. Crypto tokens such as bitcoin, Ether and Solana are the most affected.
- Recently CZ again tweeted about getting more vocal on matters he notices in the crypto industry. he claimed his intention is to reduce the risk involved in the space.
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