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Binance announces recovery fund for “otherwise strong” projects

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Binance CEO Changpeng Zhao has announced a recovery find to help projects that are “otherwise strong, but in a liquidity crisis” to reduce any effects of FTX’s disaster spreading throughout the crypto industry. The fund is open to industry co-investors as well, and more details will be announced soon. In the meantime, Zhao encouraged projects to contact Binance Labs if they think they’ll qualify.

The initiative has seen support from other players in the market. Huobi Global Tron and Poloniex will also be supporting Binance in the initiative. Zhao reiterated his point at the B20 Summit in Indonesia on Monday as well, stating that he wanted to industry as well as regulators to take responsibility and clean up the mess that’s caused a severe disruption in the crypto industry. 

This isn’t the only time Zhao has tried bailing out sinking crypto ships. The announcement comes nearly a month after Binance Pool stated that it’d be committing $500 million as a lending facility for struggling Bitcoin miners. Zhao also announced a possible acquisition of FTX to save the exchange, which in turn would’ve made Binance the biggest exchange in the crypto space. 

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However, the Binance-FTX deal fell out following the former’s due diligence, and FTX quickly sank. The recent loss of around $600 million from its wallets following a claim that the company was hacked has also not helped. CEO Bankman-Fried seems to be doing what he can, but FTX seems like a ship almost sunk at this point. 

As the fallout from FTX’s crash spreads, more and more firms are clarifying exposure with Crypto hedge fund Galois, investor Mechanism Capital, venture firm Paradigm and crypto platform Matrixport among the latest.

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Yadullah Abidi

Yadullah is a Computer Science graduate who writes/edits/shoots/codes all things cybersecurity, gaming, and tech hardware. When he's not, he streams himself racing virtual cars. He's been writing and reporting on tech and cybersecurity with websites like Candid.Technology and MakeUseOf since 2018. You can contact him here: yadullahabidi@pm.me.

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