Crypto exchange Binance is creating a fund to help potentially strong projects that are having liquidity issues amid the current crypto market meltdown fueled by FTX’s bankruptcy filing. The launch comes a month after Binance Pool revealed that it was committing $500 million as a lending facility for struggling Bitcoin miners.
Binance had backed out from an offer to acquire FTX last week after examining its books. However, in a new turn of events, Changpeng Zhao, popularly known as CZ, announced the fund while calling on major crypto industry stakeholders to stem the negative fallout from the FTX fiasco and rebuild the crypto market.
CZ announced the Binance-led “industry recovery funds” on 14 November via a series of tweets. According to the tweet, more details about the funds to rescue crypto projects exposed to FTX will come soon. CZ called upon crypto projects wanting to avail of the industry fund to contact Binance Labs, the exchange’s venture capital arm, provided they are deemed eligible to access the funds. The tweet also urged other industry players with “cash who wants to co-invest.”
In response to the tweet, Tron founder Justin Sun said that Tron, Huobi Global, and Poloniex would support Binance in its initiative.
According to reports from CoinDesk, Binance’s BNB Token shot up by 3% following the news. Bitcoin and Ether also gained 4% after the announcement.
Vocal about the crypto industry
In addition to spearheading the industry fund, CZ has been vocal about his views on the crypto industry. During the B20 Summit held on the sidelines of the recent G20 meeting in Indonesia, Zhao called for stable and clear regulations for the industry in the light of recent events. B20 is the official dialogue forum for the business community to communicate and share their aspirations with the G20 governments.