Binance Creates Industry Recovery Fund to Help Projects Struggling with Liquidity
As the effects of the FTX crisis continue to negatively affect the markets, crypto exchange Binance is creating a fund to help potentially strong projects that are having liquidity issues.
In a tweet, Binance CEO Changpeng Zhao said that the fund aims to reduce the cascading negative effects of FTX’s collapse by aiding projects that Binance’s CEO described as “strong, but in liquidity crisis.”
While Zhao didn’t provide full information on which projects would be eligible, he told teams who think they might meet the criteria to contact Binance Labs, the venture capital arm of the exchange. He also called on other industry players interested in co-investing to get in touch with them. “Crypto is not going away. We are always here. Let’s rebuild,” Zhao wrote.
Apparently confused by the announcement, a member of the crypto community replied to Zhao’s post asking why FTX would qualify for the fund. To clarify, the CEO of Binance Underline that the fund is not for FTX, but for other projects within the crypto ecosystem, adding that “liars or fraud are never considered solid projects.”
Related: Rumors continue to fly around Sam Bankman-Fried and FTX’s downfall
As the crypto markets continue to experience turbulence, a known crypto skeptic has started blaming crypto billionaires as the reason for slowing developments in the regulation of the space. U.S. Rep. Brad Sherman says the efforts of “crypto billionaire bros” in lobbying and campaign contributions have been successful in deterring meaningful legislation.
Meanwhile, as Cointelegraph previously reported, former FTX CEO Sam Bankman-Fried, three former FTX executives and Alameda Research CEO Caroline Ellison are looking for ways to flee to Dubai, UAE. United Arab Emirates (UAE). However, while the plan assumes the UAE does not have an extradition treaty with the United States, the two nations have signed a mutual assistance treaty to deal with criminals.