The Binance CEO, Changpeng Zhao, on Monday announced that Binance is forming a bailout initiative for projects that are “otherwise strong.” According to CZ, the initiative would be an Industry Recovery Fund, to remediate the negative effects of FTX, a cryptocurrency exchange platform that went bankrupt a few days earlier.
“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,” Binance’s CEO said.
Details of the industrial recovery fund are yet to roll out. However, CZ said, “more details to come soon.” Projects who are in the category the Binance CEO mentioned and according to him think they are qualified, should contact Binance Labs.
There is a space for industry players to co-invest in the Binance industry recovery fund project as CZ said they are also welcome to be part of the initiative. In an assuring tone and a call to rebuild, CZ said that “crypto is not going away. We are still here. Let’s rebuild.”
Simon Dixon, CEO of Bank To The Future, a day before CZ’s announcement mentioned that there is a need to unify creditors and Industry Recovery Plan is coming. The CEO and his team in August 2022, announced cooking up a recovery plan in El Salvador “for global distressed Bitcoin lending companies.”
He also declared interest to join CZ and the Binance team on the Industry Recovery Fund plan a few minutes after the announcement. However, he said “let’s make sure we don’t centralize the industry too though. Let’s make this an industry effort.”
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