Binance will introduce a new fund to support cryptocurrency businesses that are experiencing liquidity problems.
Early on November 14, CEO of Binance Changpeng Zhao tweeted about the strategy.
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
Zhao also invited any cryptocurrency investors who wished to donate to the fund in a different tweet.
Also welcome other industry players with cash who wants to co-invest.
Crypto is not going away. We are still here. Let's rebuild.
2/2
— CZ 🔶 Binance (@cz_binance) November 14, 2022
The news is released as the effects of FTX’s collapse last week begin to spread. Businesses from DeFi projects to startups, exchanges, and investors have all been impacted. Among the most recent businesses to disclose their exposure are the cryptocurrency hedge fund Galois, investor Mechanism Capital, cryptocurrency platform Matrixport, and venture capital firm Paradigm.
Zhao, whose tweets about selling FTT contributed to the liquidity crisis at FTX, recently vowed to criticize competitors more in the future.
