As the FTX crisis affects the crypto market, Binance CEO Changpeng Zhao announced on Monday, November 14, that an industry fund is being created to help strong projects affected by the liquidity crisis recover.
“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” Changpeng Zhao said in a tweet.
He also urged industry players with cash who want to co-invest to rebuild the space to participate in the recovery fund initiative.
Changpeng Zhao stated, “Crypto is not going away. We are still here. Let’s rebuild.”
The founder of Tron, Justin Sun, stated his intent to help and participate in the industry fund initiative to restore the market. Justin hopes it will help good developers and builders overcome the crisis.
.@trondao @HuobiGlobal @Poloniex echo @cz_binance‘s initiative to participate in this industry recovery fund and help good builders and developers to recover from the crisis! ❤️
— H.E. Justin Sun🌞🇬🇩🇩🇲🔥 (@justinsuntron) November 14, 2022
Simon Dixon, CEO of BankToTheFutuer, also expressed interest in joining the initiative.
I would like to join the fund @cz_binance . Let’s make sure we don’t centralise the industry too though. Let’s make this an industry effort. https://t.co/SV4lM0HWrL
— Simon Dixon (Beware Impersonators) (@SimonDixonTwitt) November 14, 2022
Crypto King, a Twitter user, questioned if FTX qualifies as strong despite being in a liquidity crisis. Changpeng Zhao replied:
“Hey, you misread the tweet, I think. Liars or fraud never qualify as strong projects. This is for other projects in the ecosystem.”
Crypto King agreed and added:
“I agree 100%. I had not known his lies, i wish I had.
I was more so referring to projects that use their illiquid assets to collateralize loans. What FTX did with FTT, the stuff that’s coming out with Alameda and laundering through Bermuda is a whole different story”
In the series of tweets, Changpen Zhao explained:
“liquidity crisis” is a short of “don’t have money” I guess.
— CZ 🔶 Binance (@cz_binance) November 14, 2022
Crypto platforms can get in touch with Binance Labs to see if they qualify for the market recovery fund.
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