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0 CommentsBinance’s CEO Changpeng Zhao said that Binance would launch the fund to help projects “who are otherwise strong, but in a liquidity crisis,” welcoming investors to contribute to the fund and qualifying projects to apply. Tron founder Justin Sun said that Tron, Huobi Global, and Poloniex will support the initiative.
Binance plans to launch a new fund to help crypto projects facing liquidity crunches. Binance’s CEO, Changpeng “CZ” Zhao, tweeted about the initiative 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,” he said, welcoming qualifying projects to contact Binance Labs, the venture capital arm of the crypto exchange.
In the next tweet, Binance’s CEO also opened the door to any crypto investors wishing to contribute to the fund. He also said that more details will be announced in the coming days, and said that the fund is open to industry co-investors.
Tron founder Justin Sun said that Tron, Huobi, and Poloniex will support Binance in its initiative. Further, Huobi Global confirmed this in a tweet.
The news comes amid the aftermaths of last week’s FTX collapse spreads. A slain of crypto 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.
Binance’s initiative comes a month after Binance Pool said it was committing $500 million in the form of a lending facility for struggling bitcoin miners.
Recently, Binance’s CEO, whose tweets about selling FTT helped trigger FTX’s liquidity crisis, also vowed to be more critical of rivals going forward.
