Binance to launch fund to aid industry recovery

The cryptocurrency exchange Binance will launch a fund to mitigate the cascading negative impact of the FTX collapse on the industry. This was stated by Binance’s CEO, Changpeng Zhao.

Also welcome other industry players with cash who wants to co-invest.

Crypto is not going away. We are still here. Let’s rebuild.

2/2

— CZ ? Binance (@cz_binance) November 14, 2022

“Binance is forming an industry-recovery fund to help projects that are otherwise strong but are experiencing liquidity stress. More details will follow in the near future. [… ] Crypto is not going away. We’re still here,” Zhao wrote.

At the G20 summit Zhao reminded industry representatives of the responsibility to protect users. According to the press release, the head of Binance expressed hope that leading players could cooperate to establish stringent standards.

“All participants need to increase transparency and closely cooperate with regulators to make the industry more reliable,” he concluded.

The decision by Binance to create the fund was welcomed by Justin Sun, founder of the Tron Foundation. Earlier he also stated his readiness to provide a a ‘billion-dollar’ bailout for FTX.

.@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, co-founder of the online investment platform BankToTheFuture, expressed a desire to join Zhao’s initiative.

“But let’s make sure we don’t centralize the industry too much,” Dixon added.

The cryptocurrency exchange Bitget also announced the creation of a fund, according to ForkLog’s press release. A $5 million structure is intended to support those affected by the FTX incident.

“In this dark time, we must join forces, help each other, and wait for the dawn,” Gracy Chen, managing director of Bitget, emphasized.

During this dark time, we should join forces and help each other, and wait for the dawn. If you are an influencer/trader affected by the FTX incident, you can find us @bitgetglobal for support, you can also send me ur info at gracy.chen@bitget.com with [FTX-trader] in title

— Gracy Chen (@GracyBitget) November 13, 2022

FTX Group filed for bankruptcy under Chapter 11 of the U.S. Bankruptcy Code on November 11. Sam Bankman-Fried stepped down as CEO.

Zhao compared the current state of the industry to the 2008 financial crisis. In his view, more companies could fail in the coming weeks.

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