Changpeng “CZ” Zhao, CEO of Binance, first stated that his exchange is establishing an industry recovery fund to aid in the sector’s reconstruction.
According to CEO Changpeng “CZ” Zhao, Binance is aiming for a $1 billion or more recovery fund to buy troubled crypto assets, which was previously revealed.
According to the news outlet, CZ said,
“If that’s not enough we can allocate more.”
Following the demise of FTX and its CEO Sam Bankman-Fried, CZ has emerged as a significant player in the sector over the past few months, solidifying his status as a significant leader. On Twitter earlier this month, he voiced his worries about FTX and abandoned a proposal to buy it to help it out of its financial difficulties.
A number of businesses, including lender BlockFi, are reportedly planning for bankruptcy as a result of the industry-wide effects of FTX’s insolvency.
Binance will be introducing a recovery fund “to aid projects who are otherwise healthy, but in a financial problem,” CZ stated last week.
According to CZ on Thursday, the exchange will have a “loose approach where different industry players will contribute as they wish.” A thorough blog article will shortly be published.
Binance CEO Announces Additional Allocation
The industry recovery fund at the cryptocurrency exchange Binance has received an additional $1 billion in funding, bringing the total amount of the fund to almost $2 billion.
“CZ”, CEO of Binance, made the additional allotment public on Friday.
A day after CZ stated that Binance is aiming for $1 billion for its crypto recovery fund, the size has increased. Along with other well-known cryptocurrency businesses, Aptos Labs and Jump Crypto joined CZ’s initiative and will each make a $50 million donation to the fund.
The industry would be supported and troubled crypto assets would be purchased using the recovery fund. Since the beginning of the year, the cryptocurrency market has experienced a sharp downturn, which has caused a number of crypto enterprises to close their doors.
BTC is currently trading 1.6% lower during the day and is hanging around $16,400 at the time of writing, indicating that the cryptocurrency market is still under pressure.