Formed by Binance and other big names in the crypto industry, this recovery fund will work towards reducing the effects caused by the fallout of FTX
Binance CEO Changpeng Zhao spoke about the FTX fallout and its negative effects on the crypto industry. The CEO in his tweet announced that Binance has now decided to form an industry recovery fund in order to recover from the FTX disaster and its effects, this includes pooling money to help crypto projects that are strong but are suffering at the hand of an industry downturn.
The FTX fallout is one of crypto’s most disastrous events, where the FTX crypto exchange lost all of its valuation after a rush of customer withdrawals. FTX CEO Sam Bankman Fried, who was once known as the new age Warren Buffet also lost $15 billion of his wealth and has now stepped out from his position.
Soon after the FTX collapse, crypto customers that once trusted the exchanges are now starting to doubt them. Many major crypto firms are announcing a decrease in customer base thus worrying major players such as Binance.
“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” wrote Binance CEO Zhao in his Tweet.
Apart from Binance, many other crypto based businesses are also looking forward to participating in the industry fund. Tron, a crypto based operating system company also shows interest in the industry funds and believe that it could do wonders.
Many big names such as Simon Dixon also showed interest in the industry recovery funds.