Changpeng “CZ” Zhao, the CEO of Binance, announced on November 14 that the exchange would establish an industry recovery fund to aid solid enterprises facing a liquidity problem.
CZ made the remarks in light of the current bear market liquidity squeeze, which has affected various crypto ventures and forced some of them out of business.
Who Can Participate In the Industry Fund?
The fund would accept investments from other industry players, according to CZ. More details regarding the program would soon be released, he noted.
CZ requested that initiatives that think they are eligible for the money get in touch with Binance Labs.
In June, CZ stated that even if the firm did not benefit from the assistance, Binance was prepared to help other participants in the market survive and prosper.
A $500 million loan facility had also been introduced by Binance Pool to aid the cryptocurrency mining sector.
CZ’s Move Gets High Praise
The cryptocurrency community has embraced CZ’s move, with many praising it as a positive step forward.
Justin Sun, the founder of Tron (TRX), announced that Huobi Global and Poloniex, two of his exchanges, would take part in the funding project. Sun said that he would participate in the industry recovery fund and help good builders and developers to recover from the crisis.
Simon Dixon, the creator of the web3 investing company Bnk to the Future, was another significant stakeholder who backed the fund. Dixon expressed interest in joining the fund and stressed that this should be an industry-wide initiative.
Is the Move Sustainable?
While this was going on, some people expressed doubts about the concept and questioned how Binance would identify “strong projects.” Others argued that the fund shouldn’t rescue projects that are experiencing a liquidity problem because doing so would be a failure on their part.
These concerns are valid in light of the FTX collapse and the increasing scrutiny of Sam Bankman-Fried’s life. His frantic attempts to save his exchange last week hit dead ends before he had to file for bankruptcy and then radio silence. He has been making cryptic tweets though as the crypto world waits to see how the FTX saga ends.
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