Binance to launch ‘recovery fund’ for strong projects with liquidity crisis News ▸ Binance ▸ Bear Market
Binance to launch ‘recovery fund’ for strong projects with liquidity crisis
Tron founder Justin Sun and famed Celsius investor Simon Dixon said they intend to support the initiative.
2 min read
Updated: Nov. 14, 2022 at 9:08 am UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Binance CEO Changpeng ‘CZ’ Zhao revealed on Nov. 14 that the exchange would launch an industry recovery fund to help strong projects in a liquidity crisis.
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. In the meantime, please contact Binance Labs if you think you qualify. 1/2
— CZ 🔶 Binance (@cz_binance) November 14, 2022
CZ made the statement in light of the recent bear market liquidity crunch that has hit several crypto projects, forcing some of them out of business.
According to CZ, the fund would be open to other industry players that want to invest. He added that more information would be provided about the initiative soon.
CZ asked projects that believe they qualify for the fund to reach out to Binance Labs.
In June, CZ said Binance was willing to help industry players survive and thrive even if the company did not gain anything from such help.
Binance Pool had also launched a $500 million lending facility to support the crypto mining industry.
Crypto community praises CZ initiative
The crypto community has welcomed CZ’s initiative, with many hailing the idea as a welcome development.
Hey CZ, great idea. We’ve actually been doing this already for good teams in the ecosystem that were unfairly affected. Happy to join forces on the recovery fund.
— Quantstamp (@Quantstamp) November 14, 2022
That's extremely nice, as we know that many good projects were affected by FTX. will be good if you could list all the approved ones too.
— Sydney TheCMO.eth (@SydneyIfergan) November 14, 2022
Tron (TRX)founder Justin Sun said his two exchanges, Huobi Global and Poloniex, would participate in the initiative. Sun said:
“(We would) participate in this industry recovery fund and help good builders and developers to recover from the crisis!”
Another major stakeholder that supported the fund was Simon Dixon — founder of the web3 investment firm Bnk to the Future. Dixon said he would like to join the fund and added that this should be an industry-wide effort.
Please DON'T do this.
If the business is struggling with Liquidity there is a reason.
Normally Mismanagement and incorrect hires.
Giving money to help those that are struggling just prolongs there ability to lessen their harm and place more direct harm on us the customers.— NerdzRin (@NerdzRin) November 14, 2022
Meanwhile, some expressed reservations about the idea, asking how Binance would determine “strong projects.” Some also pointed out that the fund shouldn’t bail out projects facing a liquidity crisis because it shows failure on their part.
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Bitcoin, a decentralized currency that defies the sway of central banks or administrators, transacts electronically, circumventing intermediaries via a peer-to-peer network.
Binance
Binance is a global cryptocurrency exchange that provides a platform for trading more than 100 cryptocurrencies.
HTX
Huobi, a virtual asset exchange, launched a revised branding strategy on September 13, 2023, where “Huobi” will be rebranded as “HTX.” “H” stands for Huobi, “T” represents TRON with a commitment to being all in TRON, and “X” stands for the exchange.
Poloniex
Poloniex is a US-based cryptocurrency exchange platform offering a wide variety of digital assets.
Changpeng Zhao, popularly known as “CZ,” is a notable figure in the cryptocurrency world, primarily for founding and leading Binance, the world’s leading cryptocurrency exchange by trading volume.
Simon Dixon is the CEO & Co-Founder of BnkToTheFuture.com, an online investment platform that allows professional investors to invest in financial innovation and technology investment opportunities.
Justin Sun has carved a name for himself as a leading figure in the blockchain sector.