Binance creates recovery fund to help strong projects facing liquidity crunch November 14, 2022
Binance creates recovery fund to help strong projects facing liquidity crunch<br><br>
Binance creates recovery fund to help strong projects facing liquidity crunch
As one of the renowned crypto exchanges, FTX, has been faced with a liquidity crunch and has made the crypto market bleed, crypto giant Binance took an initiative to create industry recovery funds to aid those efficient and potential projects who are in need and are struggling with a liquidity crisis.
Binance CEO Changpeng Zhao said in a tweet today that “To reduce further cascading negative effects of FTX, Binance is forming an industry recovery fund, to help projects who are otherwise strong but in a liquidity crisis. More details to come soon. In the meantime, please contact Binance Labs if you think you qualify.”
However, the CEO did not mention or detail which projects will qualify the criteria to be part of the funds, he \only asked the companies who believe that they may fit the criteria to contact Binance Labs, the exchange’s venture capital arm. He welcomed other industry players, who may be interested to co-invest, to also get in touch with them. He wrote, “Crypto is not going away. We are still here. Let’s rebuild.”
A crypto community member on Twitter, who seemed confused by the Binance CEO’s announcement replied, “How would #FTX have even qualified as strong but in a liquidity crisis? Their “liquidity” was an insolvent token they printed to use for marginalized loans.”
To which Zhao replied, “ Hey, you misread the tweet, I think. Liars or fraud never qualify as strong projects. This is for other projects in the ecosystem.” He claimed that the funds are not for FTX, although, for the projects with the crypto ecosystem, and not for the people who deceive.
A few crypto community critics have started to blame the crypto billionaires for the reason to slow down the regulatory and legislative momentum in the crypto space.
In the meantime, the CEO of FTX Sam Bankman-Fried, its three former executives, and Alameda Research CEO Caroline Ellison is looking for ways to flee the country and move to United Arab Emirates (UAE), Dubai. However, both nations USA and UAE have a similar and mutual assistance treaty for dealing with criminals.