The cryptocurrency exchange Binance is setting up a fund to assist potentially strong projects that are experiencing liquidity issues as the effects of the FTX crisis continue to negatively impact the markets.
The fund, according to Binance CEO Changpeng Zhao in a tweet, aims to lessen the cascading negative effects of FTX’s demise by assisting projects that are “strong, but in a liquidity crisis.”
Zhao did not go into detail about which projects would be eligible, but he advised teams who thought they might meet the requirements to get in touch with Binance Labs, the exchange’s venture capital arm. He also encouraged other industry participants who were interested in co-investing to contact them. “Crypto is not going away. We are still here. Let’s rebuild.”
Community was questioning FTX’s eligibility for Binance’s recovery fund
One member of the cryptocurrency community responded to Zhao’s post by questioning why FTX would be eligible for the fund, appearing perplexed by the announcement.
In order to be clear, the CEO of Binance said that the fund is not for FTX but rather for other initiatives within the cryptocurrency ecosystem and added that “liars or fraud never qualify as strong projects.”
A well-known cryptocurrency skeptic began to point the finger at crypto billionaires as the cause of the slowdown in regulation efforts as the cryptocurrency markets continued to experience turmoil.
Brad Sherman, a representative for the United States, claimed that the lobbying and campaign financing of “billionaire crypto bros” had been successful in preventing the passage of significant legislation.
Justin Sun, the creator of Tron, also expressed his support for the initiative. Sun encouraged Huobi Global, TronDAO, and Poloniex to support CZ’s initiative to support strong builders remain resilient in a crisis.
During the sustained bear market, two of the most resilient companies were Binance and FTX. After Sam Bankman-FTX Fried’s exchange failed, the market, which had been gradually rebounding following the fall of Terra, entered a death spiral.
One of the major players in the cryptocurrency market was FTX. The crypto behemoth was brought down by liquidity issues and allegations of customer funds being misappropriated.