- Binance CEO CZ announced the plans to launch an industry recovery fund.
- The fund is formed with a vision to reduce the cascading effects of FTX.
- Justin Sun, founder of Tron also extended support for CZ’s decision.
Binance CEO Changpeng Zhao (CZ) announced plans to launch an “industry recovery fund” in one of his recent tweets. The industry fund is aimed at minimizing the cascading negative effects of FTX.
The fund will help projects that are robust, except when there is a liquidity crisis. The founder of Tron, Justin Sun, also extended his support for the cause.
.@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
Sun tagged TronDAO, Huobi Global, and Poloniex to support Zhao’s initiative to help good builders stay robust during a crisis. On Twitter, Michael van de Poppe, CEO, and founder of Eight Global also stated that Binance launching the insurance fund is good news.
Zhao also welcomed other industry players with cash who wanted to co-invest and be a part of the fund. Binance’s CEO mentions in the tweet above how Binance would assist “strong” projects that experience liquidity crises. The community expressed concern about this and questioned how FTX would be considered strong.
The CEO gave the justification that liars or fraud never qualify as strong projects. “This is for other projects in the ecosystem.” Many supported Zhao’s decision to help struggling projects stay robust during tough times.
Binance and FTX were two of the sturdiest firms during the prolonged bear market. The market, which was slowly recovering after the fall of Terra, plunged into a death spiral after the collapse of Sam Bankman-Fried’s FTX exchange.FTX was one of the key players in the cryptocurrency industry. Liquidity crunches and alleged misuse of customer funds has brought down the crypto behemoth. It also sent ripples across the cryptocurrency industry and took a toll on the prices of all cryptocurrencies.
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