Binance Launches Recovery Fund for Crypto Projects Facing Liquidity Crisis
Table of contents
Binance Establishes Recovery Fund
Binance is establishing an industry recovery fund to assist projects that are generally solid but are experiencing liquidity difficulty to lessen the further cascading negative impacts of FTX. Zhao promised that further information would be forthcoming shortly and suggested that qualified companies could contact Binance Labs, the exchange's venture capital division.
Zhao also invited any cryptocurrency investors who wished to donate to the fund in a different tweet. Justin Sun, the founder of Tron, declared that Tron, Huobi Global, and Poloniex would back Binance's proposal. In a tweet, Huobi Global also reaffirmed this.
Companies Affected by FTX Demise
The announcement comes as FTX's collapse last week's effects become more apparent. DeFi initiatives, startups, exchanges, and investors are just a few of the many types of companies that have been impacted. Galois, a cryptocurrency hedge fund, Mechanism Capital, Matrixport-a cryptocurrency platform, and Paradigm, a venture capital company, are some of the most recent companies to disclose their exposure.
Zhao recently pledged to be more critical of competitors coming forward. Zhao's tweets advocated selling FTT as a contributing factor in the liquidity issue that FTX experienced.