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On November 14, Binance CEO Changpeng Zhao announced that Binance is forming an industry recovery fund
Binance’s recovery fund will assist projects that are “otherwise strong but are experiencing a liquidity crisis,” said CZ
The exchange has introduced the fund in order to reduce the cascading negative effects of FTX. It will also aid in avoiding such catastrophes in the future, the CEO said
Notably, CZ added that more information regarding the same will be available soon
He even asked projects to contact Binance Labs if they think they qualify for the fund
He also said that Binance will welcome other industry players with the means to assist in the fund to join the process. The exec wrote,
Also welcome other industry players with cash who wants to co-invest. Crypto is not going away. We are still here. Let’s rebuild.
A Twitter user named Crypto King pointed out on CZ’s tweet that the recently fallen crypto exchange FTX wouldn’t have qualified for this fund
How would #FTX have even qualified as strong but in a liquidity crisis?
Their “liquidity” was an insolvent token they printed to use for marginalized loans.
— Crypto King (@Cryptoking) November 14, 2022
Interestingly, to this, CZ replied,
Hey, you misread the tweet, I think. Liars or fraud never qualify as strong projects. This is for other projects in the ecosystem.
Nevertheless, Justin Sun the founder of TRON shared CZ’s Tweet and said that his projects TronDAO, Huobi, and Poloniex “echo CZ’s initiative to participate in this industry recovery fund and help good builders and developers to recover from the crisis!”
Crypto Twitter also took keenly to the idea and began suggesting projects that could need Binance’s help, including the near-insolvent BlockFi
@cz_binance CZ, you may want to consider @BlockFi for a recovery fund. They have a decent number of customers in the US, industry leader in financial solutions for Crypto and strong credit card business with 80k customers @BlockFiZac
— TechStockLawyer (@SPACLawyer) November 14, 2022
