Binance to launch ‘recovery fund’ for strong projects with liquidity crisis Binance to launch ‘recovery fund’ for strong projects with liquidity crisis

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.

Binance to launch ‘recovery fund’ for strong projects with liquidity crisis

Cover art/illustration via CryptoSlate

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.

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 alsoย 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.

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 โ€” 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.

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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