The largest cryptocurrency exchange in the world, Binance, recently announced that it is forming a “industry recovery fund. With this recovery fund, it intends to help crypto projects that are currently in a liquidity crisis, among other things due to all the drama surrounding FTX.
Other industry players willing to contribute to this recovery fund are welcomed with open arms by Binance CEO Changpeng Zhao (CZ).
Binance recovery fund
In an interview with Bloomberg CZ indicated that Binance is aiming to raise $1 million for the recently announced industry recovery fund. If that amount is not enough in the end, they would like to allocate more to this recovery fund.
Various industry players can easily contribute to the recovery fund by sending funds to a public blockchain address. The CEO of Binance indicated that people can expect an extensive blog post soon with all the details surrounding the recovery fund.
Fall FTX
Of course, in the interview with Bloomberg, the demise of FTX could not be ignored:
“I think as an industry we let FTX get too big before questioning some of those things. So I’m taking the approach where we ask questions much earlier. It means no attacks on any of our industry peers. We just want more transparency and more control in the industry.”
CZ expects several parties to fall over and follow FTX, but he reiterated that the crypto industry as a whole should not worry.
For example, you could read earlier that customers of the huge crypto lending platforms BlockFi and Genesis are unable to withdraw their funds. They were both forced to pause recordings for some sort bank run to prevent. There are rumors that bankruptcy is already around the corner for both parties, but Genesis has indicated that there is no question of bankruptcy for them yet.
