Binance CEO Changpeng Zhao announced today that they have created a recovery fund in the wake of the FTX crisis. With the said fund, it is aimed to help the projects affected by the liquidity crisis. Here are the details…
Binance CEO announces a fund for the crypto ecosystem
Binance CEO Changpeng Zhao announced a fund to mitigate the liquidity crisis and its effects in the wake of the FTX crisis, in a statement today. The purpose of Binance’s recovery fund is to assist successful long-term projects affected by the liquidity crisis. Cryptocurrency platforms need to contact Binance Labs to find out if they meet the criteria for this recovery fund.
Also welcome other industry players with cash who wants to co-invest.
Crypto is not going away. We are still here. Let's rebuild.
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— CZ 🔶 BNB (@cz_binance) November 14, 2022
In addition, Binance CEO asked other firms to co-invest in the recovery fund and help the market recover. “Our door is open to other sector players who have cash. Their investments will be accepted,” he said. Also, stating that the cryptocurrency space is “not going anywhere,” Zhao adds, “now is the time to rebuild.”
Justin Sun, the founder of Tron, announced that the CEO of Binance wants to support his attempt to save the market. He believes that good developers will help them get out of the crisis. In October, Binance Pool announced a $500 million program to reduce the difficulty of Bitcoin miners.
Binance holds FTTs
As is known, overall crypto prices have fallen. Institutional investors have lost confidence in the cryptocurrency space after FTX filed for Chapter 11 bankruptcy. In his statements on Twitter, Zhao stated that they aim to “reduce the effects of FTX’s bankruptcy.” Therefore, when asked by a user whether FTX would also benefit from this program, he replied with the following statements:
Projects that consist of lies or fraud can never be qualified as strong projects. This is for other projects in the ecosystem.
On the other hand, CZ stated that they still have FTX’s native token, FTT. As we reported as Kriptokoin.com, the FTX crisis started after Zhao announced that he would sell the FTT they had. However, he now stated that he was not behind the massive decline of the FTT token. He said they never shorted their FTT. After speaking with Sam Bankman-Fried, the former CEO of FTX, he stated that he stopped sales.
The market reacted positively to Binance’s announcement
Meanwhile, the announcement triggered a spike in Bitcoin price and the overall crypto markets. Bitcoin has risen by 2% in the last hour. It increased from $ 16,500 to $ 16,830. In addition, Ethereum (ETH) also experienced an increase of around 2 percent. ETH is worth $1,265. Binance’s cryptocurrency BNB managed to rise to $ 282. Major altcoins like XRP, DOGE, ADA, MATIC have also witnessed 2-3 percent acceleration in the last hour.
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