Binance will launch a new ‘industry recovery fund’
Quick Take
- Changpeng Zhao, Binance’s CEO, said in a tweet that Binance would launch the fund to help projects “who are otherwise strong, but in a liquidity crisis.”
- He welcomed qualifying projects to apply, and opened the door for investors to contribute to the fund.
Binance will launch a new fund to help prop up crypto projects facing liquidity crunches.
Changpeng Zhao, Binance’s CEO, tweeted about the plan early on Nov. 14.
“To reduce further cascading negative effects of FTX, Binance is forming an industry recovery fund, to help projects who are otherwise strong, but in a liquidity crisis. More details to come soon,” said Zhao, adding that qualifying projects can contact Binance Labs, the exchange’s venture capital arm.
In another tweet, Zhao also opened the door to any crypto investors wishing to contribute to the fund.
The news comes as the fallout from FTX’s collapse last week spreads. A wide variety of businesses have been hit, ranging from DeFi projects, to startups, exchanges and investors. Crypto hedge fund Galois, investor Mechanism Capital, crypto platform Matrixport, and venture firm Paradigm are among the latest firms to clarify their exposure.
Zhao, whose tweets about selling FTT helped trigger FTX’s liquidity crisis, recently vowed to be more critical of rivals going forward.
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