Nikolas Sargeant
Binance CEO Changpeng Zhao announced an Industry Recovery Fund to help entities that may be in liquidity crisis, but are otherwise in good shape. Entities can contact Binance Labs if they think they are in this situation, even as few details have been announced.
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
The goal of this fund is to “reduce further cascading negative effects of FTX.” Last week, Binance announced that it would sell its FTT, the native token at FTX. This caused a chain reaction of sell-offs, which resulted in FTX filing bankruptcy.
Some analysts argue this came as retribution to FTX CEO Sam Bankman-Fried when he recommended that financial regulators begin treating decentralized crypto exchanges like other large financial institutions.
FTX was the third largest cryptocurrency exchange by trading volume. Binance is the largest crypto exchange by daily trading volume. Binance reviews have praised the exchange for their complete suite of financial services.
