The entire market crashed when FTX crashed in a few days. As a consequence Changpeng Zhao, CEO of Binance, announced on Twitter the creation of a recovery fund. And thus be able to help projects that are solid, but are in a liquidity crisis.
«To further reduce the cascading negative effects of FTX, Binance is forming an industry recovery fund. To help projects that are otherwise strong but are in a cash crunch».
Likewise, CZ assured that the fund is open to possible investments from other players in the sector. Assuring that more details will be given soon. Inviting those projects that want to benefit from this recovery fund to contact Binance Labs.
Similarly, Changpeng Zhao, at a Fintech Conference held in Indonesia on Friday, called for new but stable and clear regulations for the industry.
«We need some regulation, we need to do this right, we need to do it stable».
Furthermore, he added: “I think the industry collectively has a role to protect consumers, to protect everyone. So it’s not just the regulators. Regulators have a role, but it is not 100% their responsibility».
Binance creates a recovery fund!
In fact, this new recovery fund is an alternative way to help a sector that is going through its most difficult time in years.
Now, while Changpeng Zhao did not provide all the information about the projects that could be chosen, he did tell teams that they think might fit the criteria to contact Binance Labs. He also asked other interested industry players. get in touch with them.
«More details soon. In the meantime, please contact Binance Labs if you think you qualify.».
By the way, some personalities, such as the founder of Tron, Justin Sun, and the CEO of BnkToTheFuture, Simon Dixon, have already expressed their willingness to join the initiative.
«I would like to join the fund. Let’s make this an industry effort».
Interestingly, one user asked why FTX would qualify for the fund. To which Changpeng Zhao replied that the fund is not for FTX.
«Hey, you misread the tweet I think. Liars or fraud never qualify as solid projects. This is for other projects in the ecosystem».
Finally, won’t Binance drop the crypto sector after the FTX crash with this recovery fund? Leave your opinion in the comment box.
I say goodbye with this phrase from Changpeng Zhao: «Crypto is not going away. We are still here. let’s rebuild».
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