According to Binance Holdings Ltd.’s Chief Executive Officer Changpeng Zhao, the company is aiming for a fund of about $1 billion for the potential acquisition of distressed assets in the digital asset sector.
In a turbulent time for crypto, Zhao has played a pivotal role. Sam Bankman-Fried’s FTX exchange and trading house Alameda Research fell because of his tweets highlighting worries about their condition.
CZ also stated that if it is not enough he can allocate more in a recent interview with Bloomberg Television’s Haslinda Amin.
Binance stands tall as the sturdiest among tough waves
Following FTX’s erratic bankruptcy filing, Binance solidified its status as the biggest cryptocurrency trading platform in the world.
Zhao stated last week that Binance is preparing an industry recovery fund to aid solid projects experiencing a liquidity crunch. He stated, attempting to assume the role of crypto’s chief rescuer, that the objective is to stop the spread of the crisis caused by FTX.
In the interview on Thursday, Zhao stated that a blog post about the fund would be published soon and that Binance had spoken to several key figures in the sector about it.
The well-known cryptocurrency exchange FTX filing for bankruptcy has completely upended the market. Earlier this month, Binance consented to make a non-binding donation to the struggling company. However, it quickly shifted its position and declared that it had no control over the issues.
Amidst a loss of trust in CEX, CZ suggested all exchanges follow Merkle-tree-proof-of-reserves. The CEO of Binance, CZ, announced the release of “proof of reserves” on Twitter once more.
CZ claims that a “Merkle tree” is the data structure used by blockchains to store transaction data. As a result, “Merkle-tree proof of reserves” may refer to a technique that uses public blockchain data to show that the crypto assets of exchange users are secure.
For Binance, the past few months have been full of ups and downs. As part of its expansion plans, the biggest cryptocurrency exchange in the world was able to obtain permission to operate internationally. However, it has also emerged as one of the sturdiest exchanges out there.